How to Start Trading Options
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Important legal information about the email you will be sending. By using this service, you agree to input your real email address and only send it to people you know. It is a violation of law in some jurisdictions to falsely identify yourself in an email. All information you provide will be used by Fidelity solely for the purpose of sending the email on your behalf.
The subject line of the email you send will be "Fidelity. With the options trader handbook pdf to leverage and hedge, options can help limit risk while offering unlimited profit potential. Open a Brokerage Account. For help setting up your options trading account, please call us. If you have an account, you can apply online Log Options trader handbook pdf Required or call an investment professional at Please be ready to provide the following:. We'll let you know which options level you're approved to trade—either by email in 1 to 2 days or by U.
Mail in 3 to 5 days—based on your delivery preferences. Or call us after 48 hours atand we can provide you with your approval information. Options trading strategies involve varying degrees of risk and complexity. Not all strategies are suitable for all investors. There are five levels of options trading approval, and the approval requirements are greater for each additional level since there's more risk for you and Fidelity.
Your financial situation, trading experience, and investment objectives are taken into consideration for approval. An Options Agreement is part of the Options Application. To trade options on margin, you need a Margin Agreement on file with Fidelity. After you log in to Fidelity, you can review the Margin and Options page to options trader handbook pdf if you have an agreement. If you do not have a Margin Agreement, you must either add margin or use cash.
Typically, multi-leg options are traded according to a particular multi-leg options trading strategy. With a call option, the buyer has the right to buy shares of the underlying security at a specified price for a specified time options trader handbook pdf. With a put option, the buyer has the right to sell shares of the underlying security at a specified price for a specified period of time. Visit our Learning Center to learn more with our introduction to options video.
Options trading entails significant risk and is not appropriate for all investors. Certain complex options strategies carry additional risk. Before trading options, please read Characteristics and Risks of Standardized Options. Supporting documentation for any claims, if applicable, will be furnished upon request. There are additional costs associated with option strategies that call for multiple purchases and sales of options, such as spreads, options trader handbook pdf, and collars, as compared with a single option trade.
Skip to Main Content. Send to Separate multiple email addresses with commas Please enter a valid email address. Your email address Please enter a valid email address. How to Start Trading Options With the ability to leverage and hedge, options can help limit risk while offering options trader handbook pdf profit potential.
Support For help setting up your options trading account, please call us. Apply Now Frequently Asked Questions. Apply online or by phone If you have an account, you can apply online Log In Required or call an investment professional at Please be ready to provide the following: Yearly income Options trading experience Net worth and liquid net worth. Approval time We'll options trader handbook pdf you know which options level you're approved to trade—either by email in 1 to 2 days or by U.
Expand all Collapse all. Features What are options levels? The options trades allowed for each of the five options trading levels: Level 1 is a covered options trader handbook pdf writing of equity options. Note that customers who are approved to trade options spreads in retirement accounts are considered approved for Level 2. Level 3 includes Levels 1 and 2, plus equity spreads and covered put writing.
Level 4 includes Levels 1, 2, and 3, plus uncovered naked writing of equity options and uncovered writing of straddles or combinations on options trader handbook pdf. Level 5 includes Levels 1, 2, 3, and 4, plus uncovered writing of index options, uncovered writing of straddles or combinations on indexes, and index spreads. A new options application and a Spreads Agreement must be submitted at the same time and approved prior to placing any spread transaction.
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