hi i am new to options and i was wondering if some1 can help me out. i just wanted to know when your are trading option does that mean that you need to have a margin account or can trade em like regular stocks with out margin accounts.

thanks for your time :)

A good broker will gladly open a cash account and give you option trading permission depending on your claimed option experience and resources. IMO a margin account is riskier than an option enabled account. Any broker who is not willing to open cash accounts w/ options but who will open a margin account and permit options is not one you want to do business with.

There are 4 to 5 levels of authority. You do not want the highest as it is very very risky, like naked short Calls..

If you have problems move to someone like OptionsXpress.

arthur

Great thanks arthur you been of great assistance to me and i really appreciate it
thanks :)

Options can be traded only in margin or IRA (requires broker approval) accounts.

Funny, all my option accounts are cash accounts and only one is an IRA.. My broker is OptionsXpress. Et tu?

Someone has not been telling you the truth.

arthur

Options xpress is great. They have great tools to help you learn which I am doing. You don't have to use a margin account. When you open the account, the questionnaire will ask you what your experience is trading options. If your reply is that you are inexperienced, they will only let you trade level one which is probably just covered calls.

Thanks for the detail there.
I had no ideas about options trading in margin or IRA. Really is there no other choices? I heard there were.

Thats something about managing your portfolio if you do not know in details about option pricing I guess you might not come to it. But if you think you are comfortable here than I will suggest to buy some options at lower price so that in near future you can sale them at a good amount.

Options are less risky than holding stocks, but that is not always the case. If you plan on trading options at some point make sure you understand fully the risk and downside of each trade. Also, options take more attention and can amplify the movement of a stock in your favor or out of your favor very quickly. So options trading is not for everyone, especially if you are not comfortable taking on risk or managing positions.

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