What type of option approval is needed to buy and sell puts/calls in your trading account?

Question

To buy a call option for .95 today, and sell it a week later. Or if you want to keep the option cause it`s ( in the money ) and purchase the stock?

Answer 1

If your broker allows you trade options, he will provide you with Option Risk Disclosure which must be signed. As options are complicated instruments, your broker may provide you with questionnaire detailing your market knowledge and experience.

The latter is not exactly official requirement for options trading, but it comes from "Know your client" rule, under which your broker should not give an advise to invest in options to clients not having sufficient market knowledge (for their own good).

There are brokers specialized in options like: Thinkorswim, OptionExpress etc. If you want to trade options their services might be beneficial for you, as they provide large variety of trading tools.

Answer 2

if you have to ask this question , get out of the futures market, ...you are in , over your head