Through the top-ranked thinkorswim trading platform, which comes in desktop, browser, and mobile flavors, TD Ameritrade delivers excellence for all active traders, including day traders, options traders, and futures traders.

A $0.65 per contract fee applies for options trades. We deliver added value with our order execution quality, with 98.6% of executed market orders receiving a better price than the National Best Bid and Offer (NBBO) at the time of routing. Note: $0 commission applies to U.S. exchange-listed stocks, ETFs, and options.

Email TD support and request to be allowed to trade level 2 options. Brokers will often give you higher level option approval just by asking if you have a large portfolio.

When your application is reviewed and approved, you will be assigned a trading level. With TD Ameritrade, the four levels are covered, standard cash, standard margin, and advanced.

Short-sell trading: Here, traders simply believe that the market is bearish and act accordingly. You borrow shares from a broker and sell them in the open market. You wait until the price falls enough for you to buy the stocks back at a lower rate. The difference acquired by this process is the profit.

Options trading may sound risky or complex for beginner investors, and so they often stay away. Some basic strategies using options, however, can help a novice investor protect their downside and hedge market risk.

There is no minimum funding required to open an account. However, special promotional offers may have requirements. Electronic funding minimum is $50. Margin or option privileges on account require a minimum of $2,000.

Level 4 – Naked Calls & Puts The ability to sell naked calls and puts provides access to the riskiest options trading strategies, such as naked straddles, strangles or naked calls and puts.

This is typically the level that most beginners are allowed to start with. The key difference between level 1 and level 2 is that traders are able to make directional bets with level 2. And since they can only buy and not write options, a trader's risk is limited to only the money used when buying the options.

Option approval level 3 opens access to trading spreads and the necessary margin trading involved. Access to margin trading means that traders can create positions whose value exceeds that of their total account, which would leave the broker to cover any difference in the case of any excess loss.

This is typically the level that most beginners are allowed to start with. The key difference between level 1 and level 2 is that traders are able to make directional bets with level 2. And since they can only buy and not write options, a trader's risk is limited to only the money used when buying the options.

Buying Calls Or “Long Call” Buying calls is a great options trading strategy for beginners and investors who are confident in the prices of a particular stock, ETF, or index. Buying calls allows investors to take advantage of rising stock prices, as long as they sell before the options expire.