Does Ameritrade supports "SALE TO OPEN" PUT option orders? (brokers, trading)

[raindm]

Hello,

I was wondering, does Ameritrade allows an indvidual place an Sale To Open PUT optio on an ETF or stock?
Consider if account doesn't own the ETF or stock.
Thank you,
Raindm

[Lowexpectations]

Shorting puts? Sure they do but you have to be approved to do so, contact them and see what their guidelines are in terms of financials and trading experience

[raindm]

Hi,

Thank you for your reply.


Well, the term should be "Writing Out Of The Money Put Options". Is that also Shorting Puts?

You just Sell to Open Put option.

[raindm]

I think the term in Ameritrade is "Write cash-secured puts" or "Write uncovered options" ..
Not sure what is exactly the difference.

[Lowexpectations]

Yes if you are writing you would be short the option

[JayGatsby]

Yep, Ameritrade lets you do pretty much whatever you want which is nice because a lot of brokers are way more restrictive.

[Lowexpectations]

Originally Posted by JayGatsby

Yep, Ameritrade lets you do pretty much whatever you want which is nice because a lot of brokers are way more restrictive.

You mean other brokers prevent most people from losing their ass?

[Wartrace]

Originally Posted by raindm

Hello,

I was wondering, does Ameritrade allows an indvidual place an Sale To Open PUT optio on an ETF or stock?
Consider if account doesn't own the ETF or stock.
Thank you,
Raindm

PLEASE educate yourself before you start trying to write naked put options. If you do not know if a broker will ALLOW it tells me you have no business even thinking about it. You ask on the city data investing forum?

[JayGatsby]

Wartrace makes a good point, selling options is a good way to go bankrupt if you don't know what you're doing.

[JayGatsby]

Originally Posted by Lowexpectations

You mean other brokers prevent most people from losing their ass?

Most people find a way to lose regardless of the rules.