Etrade option Level 2 (options trading, margin, trading, calls)

[bobooption]

I have been trading stocks with Etrade for few years now. Recently I have applied for level 2 options with them ,and I was denied. According to their Rep it is because I didn't answer "correctly" their questions. Does anyone knows what kind of experience one should have and what should be the account objectives in order to qualify for the level 2. I'm aware of all the risk involve in trading options
Thank you,
Kobi

[emilybh]

Originally Posted by bobooption

I have been trading stocks with Etrade for few years now. Recently I have applied for level 2 options with them ,and I was denied. According to their Rep it is because I didn't answer "correctly" their questions. Does anyone knows what kind of experience one should have and what should be the account objectives in order to qualify for the level 2. I'm aware of all the risk involve in trading options
Thank you,
Kobi

ThinkorSwim will let you do anything you want. I'd open up a ToS account and use that for your options trading. That is what I do.

[Traderx]

Originally Posted by bobooption

I have been trading stocks with Etrade for few years now. Recently I have applied for level 2 options with them ,and I was denied. According to their Rep it is because I didn't answer "correctly" their questions. Does anyone knows what kind of experience one should have and what should be the account objectives in order to qualify for the level 2. I'm aware of all the risk involve in trading options
Thank you,
Kobi

Never had this experience but your objectives should be short term gains.

Also, when you say level 2, do you mean level 2 quotes? I have no idea why you couldn't get that, but I have a feeling you mean something else. I'm not familar with Etrade anymore because quite frankly they suck, but thats another story.

Also, you may need (this is a guess) 25K and pattern daytrader status.

[sonarrat]

Originally Posted by Traderx

Never had this experience but your objectives should be short term gains.

Also, when you say level 2, do you mean level 2 quotes? I have no idea why you couldn't get that, but I have a feeling you mean something else. I'm not familar with Etrade anymore because quite frankly they suck, but thats another story.

Also, you may need (this is a guess) 25K and pattern daytrader status.

Level 2 is just buying and selling options. With Level 1 all you can do is write covered calls. Level 3 adds writing naked puts and a few other specialized strategies.

You don't need margin or daytrader status to trade options. But E*Trade in particular wants you to get Level 1 status and use it before they give you Level 2 status, which is kind of challenging for a novice since it typically requires thousands of dollars to buy enough stock to write covered calls.

[BMWZ4RUlz]

I am having the same problem. Just want to buy some calls/puts. Any recommendations for a newbie? Playing with a very small amount of money-2k tops.

[howard555]

Originally Posted by dshawg1

I am having the same problem. Just want to buy some calls/puts. Any recommendations for a newbie? Playing with a very small amount of money-2k tops.

I am with Schwab and I know some people who use Trade King and levels 1-2-3-4 mean different things.

Schwab only has 3 levels.
1. covered calls or puts
2. naked puts if cash secured, spreads, straddles,
3. naked calls

I do not remember about long calls or puts, they may be in level 1.
------------------------
Trade King had 4 levels.

The most basic option use is covered calls against stock you already own, or long calls or puts you purchase. If you are wrong on the timing and the direction, you can lose 100%.

What type trades are you wanting to be approved for?

[howard555]

Originally Posted by sonarrat

since it typically requires thousands of dollars to buy enough stock to write covered calls.

This is an issue. My nephew has about $6,000 and he just has trouble getting enough shares. To sell one covered call option is tough unless your stock has a high beta.

[Dorothy Pennington]

My husband has an etrade account and has just been diagnosed by the VA as an addicted gambler. He has spent over $100,000 in various way and has been spending it from the retirement account. We are not wealthy people. How can I stop this in etrade?

[IDtheftV]

This should have been in a new thread.

It's a strange topic. It might better have been posted in the Mental Health forum.

Did you call eTrade? ( Is his retirement account with eTrade? )

Did you talk to a lawyer? Does the VA have lawyers?

It really sounds like it might be a legal issue regarding competence.

< or >

It might be a legal issue regarding whether you should stay married to someone who is taking you to the "Poor House."

It has nothing to do with investing.

I hate to see this happen. I have and it's not pretty. I've seen someone make over a million $$$ in the 1980s, lose it and do it again in the 1990s. They went bankrupt in the following decade. A million $$$ was plenty to retire on in the 1980s.

[jdhpa]

Originally Posted by Dorothy Pennington

My husband has an etrade account and has just been diagnosed by the VA as an addicted gambler. He has spent over $100,000 in various way and has been spending it from the retirement account. We are not wealthy people. How can I stop this in etrade?

I'm very sorry to hear this. Something similar happened to a co-worker of mine. His lawyer advised him to get a divorce, which he did. I suggest you speak to a lawyer.

Good luck.