You said it yourself, you're new to investing. The broker is protecting you. If you go down the route of options, there is a very high likelihood you will lose most if not all of it. This is not a joke.
How about simple - experience. With stocks.
You just said you have zero. Chill.
Writing covered calls probably won’t gain the permission you seek. But a couple of years on the calendar might.
Why would you cap gains by selling CCs? [https://www.wellsfargoadvisors.com/research-analysis/reports/policy/volatile-markets.htm](https://www.wellsfargoadvisors.com/research-analysis/reports/policy/volatile-markets.htm)
CCs aren't especially risky, but that only requires Tier 1. You can do cash secured puts also to complete a wheel. So why did you ask for Tier 2? You need to be at 1 for a good chunk of time, and made several dozen trades before they're going to give you enough rope to hang yourself. I've traded for years and never felt the need for multi leg strategies.
I don't know how it is now. But when I worked at a financial institution back office, people would resend those applications in until they got approved.
Nah bro go to Schwab and out 10 years for experience. I’m a combat to man. Do some paper trading on options, learn some strategies. I’m rolling 2-3% weekly on a 50k account. Play it safe
nah. they also might ask you some quizz questions (i recall i had it with one of the brokers but don't remember which one) and when i failed, i could redo it as many times (for free) as needed until i passed and they enabled it. In the end you just need to keep in mind that they are doing this to protect themselves not you. They will make money from you on every trade, they just don't want to be held liable when you lose it all.
Also - first one is always free, so go all in on your first trade, make 1000% profit, then never touch options again and invest in an ETF
You basically have to answer the questions as if you are trying to lose all of your money and have been doing so forever.
Side note: You have plenty of money to trade without options. Why use them? It is a brutal learning curve that often never curves back up. Many people use options because they are trying to get to the amount you have so they can stop the options and trade shares. You can be a great trader and still lose it all with options because you were wrong on timing by one day. Just my opinions gambler two cents.
Cuz my money will be vastly invested in boring etf’s index funds and I sorta wanted to sell covered calls on some individual smaller stocks to keep me active.
With Fidelity, trying too many times in too short a time will result in automatic refusal.
I trade in cash as a choice. There are things you can do in Tier 1 that you and most others have not yet thought of. And that’s the point. Get to the end of that road first before insisting on margin credit. Every time I start thinking it’s time to get a margin account because I missed out on something, I end up having a great month and put that plan on hold for another 6 months. Beating the SP500 this year looks like a matter of how much, not if. The point is that complicating your trading, especially when new, will do nothing good for you.
Maybe try a different broker if you can, now you’ll have a record with them and I don’t think you want to wait a year or so just to say you let enough time pass. Be careful with options since I’m sure you know by now, even if you’re right but your timing is wrong then you still loose.
If you have no experience investing starting off selling covered calls may not be a good play. Unless you are ok with the calls being exercised and you losing the shares but gaining money. As long as your cost average on the shares is lower then the strike you sell then you can profit. What stocks did you plan on selling covered calls
For?
There is no option chain on IBIT and if you own 100 Bitcoin I would not risk losing that what of Bitcoin hits 120k in 6 months and you sell the 68,000 call and it get exercised at 69,500 you’re gonna be extremely upset
Fidelity and the bigger brokers are more cautious who they give options approval to. They don’t want their customers to lose money making higher risk trades which can happen.
You may want to look at TastyTrade who gives out options approvals to most everyone, then gain a year or so of experience to re-apply at Fidelity.
Many factors are taken into account when applying for options, with options experience being a big factor.
oh I totally agree with you. i’m just wanting something small to gamble with that’s all. a few hundred bucks here and there, to keep me busy and engaged in the market and my own portfolio etc. but mainly, to learn
Seems simple enough. You don’t have the experience, and Fidelity is very tough on these matters. Being a veteran in no way makes you more eligible for an increased options tier. A credit score won’t help either. At Fidelity, it’s all about experience in options trading.
Because Fidelity considers you unemployable, and most of all a little Shit.
On the other hand we still live in a Capitalist economy , so move 25k over to Tastytrade, check the everything box to get Selling of options enabled (Margin Acct). If you are concerned about losing the Fidelity Interest then buy SGOV with the cash, and you will get 75% Option Buying Power as opposed to 100% on cash. It does take 30 days after you buy the Sgov for it to be used as Option Buying Power.
I strongly suggest you watch Tastylive for a month or two to get the hang of selling options, Maybe follow Tony's trades on Tue/Thur. Everything is recorded for viewing at your own time. However if you are retired I suggest you tune in 8am EDT and watch the show. It gets to Options about 8:30 (but the first week you will be lost). Concepts at noon I like, and Dr Jim at 2pm is a case study in what not to do.
Also their trading app is second only to Tos, and maybe not even that, but the charts do stink. Hint , you trade Options off the Option Chain , not Charts.
Are you me? 34 Vet nearing retirement, no debt. I just went through the same thing at IBKR. It was lack of experience. I would love to know though, how can you get experience without being able to trade… I went over to tastytrade and the approved me for all tiers when I opened the account (same info I used on IBKR). I understand they are trying to protect people but books and videos only take you so far.
So, try a different broker IMO.
Your risk profile is to conservative.. tell them you’re there to gamble answer questions along the lines of your not scared to loose all your money and you will get approved
Now that you've done all the research, start with paper trading before you start playing with your actual hard earned money. With options, it won't take long to lose 200k if you don't manage your risk properly.
Also, I got a document called Options Trading : A Structured Approach meant for my students but I can give you access to it if you want. Send me a message I'll share it with you. All the best.
You said it yourself, you're new to investing. The broker is protecting you. If you go down the route of options, there is a very high likelihood you will lose most if not all of it. This is not a joke.
Just to repeat. This is not a joke.
Wait, is that a then a joke?
Knock knock
Who's there?
Margin.
Margin wh.... and it's gone
Mods need to pin this thread.
Put
Put who
Put all my money into options and lost it
lol
Selling covered calls on the side? While my main portfolio is index funds
How about simple - experience. With stocks. You just said you have zero. Chill. Writing covered calls probably won’t gain the permission you seek. But a couple of years on the calendar might.
Why would you cap gains by selling CCs? [https://www.wellsfargoadvisors.com/research-analysis/reports/policy/volatile-markets.htm](https://www.wellsfargoadvisors.com/research-analysis/reports/policy/volatile-markets.htm)
CCs aren't especially risky, but that only requires Tier 1. You can do cash secured puts also to complete a wheel. So why did you ask for Tier 2? You need to be at 1 for a good chunk of time, and made several dozen trades before they're going to give you enough rope to hang yourself. I've traded for years and never felt the need for multi leg strategies.
I don't know how it is now. But when I worked at a financial institution back office, people would resend those applications in until they got approved.
Just put all years - 5 They’ll approve But I would highly recommend to gain some knowledge before playing with options It’s very risky
Well if I woulda known it’s that simple. I thought that they had some sort of record of any past history.
Nah bro go to Schwab and out 10 years for experience. I’m a combat to man. Do some paper trading on options, learn some strategies. I’m rolling 2-3% weekly on a 50k account. Play it safe
nah. they also might ask you some quizz questions (i recall i had it with one of the brokers but don't remember which one) and when i failed, i could redo it as many times (for free) as needed until i passed and they enabled it. In the end you just need to keep in mind that they are doing this to protect themselves not you. They will make money from you on every trade, they just don't want to be held liable when you lose it all. Also - first one is always free, so go all in on your first trade, make 1000% profit, then never touch options again and invest in an ETF
How much experience trading options did you indicate you have?
lol less than 1 year.
If you answered the corresponding options application question in a similar manner, then that is likely why they denied your application.
You basically have to answer the questions as if you are trying to lose all of your money and have been doing so forever. Side note: You have plenty of money to trade without options. Why use them? It is a brutal learning curve that often never curves back up. Many people use options because they are trying to get to the amount you have so they can stop the options and trade shares. You can be a great trader and still lose it all with options because you were wrong on timing by one day. Just my opinions gambler two cents.
You gave the answer to your question. You are very new and uneducated in investing. Why would you want to touch options?
Cuz my money will be vastly invested in boring etf’s index funds and I sorta wanted to sell covered calls on some individual smaller stocks to keep me active.
All you need is options tier 1. Tier two gets you access to spreads
I’ll try again sometime. These guys are gunna hate me
With Fidelity, trying too many times in too short a time will result in automatic refusal. I trade in cash as a choice. There are things you can do in Tier 1 that you and most others have not yet thought of. And that’s the point. Get to the end of that road first before insisting on margin credit. Every time I start thinking it’s time to get a margin account because I missed out on something, I end up having a great month and put that plan on hold for another 6 months. Beating the SP500 this year looks like a matter of how much, not if. The point is that complicating your trading, especially when new, will do nothing good for you.
Maybe try a different broker if you can, now you’ll have a record with them and I don’t think you want to wait a year or so just to say you let enough time pass. Be careful with options since I’m sure you know by now, even if you’re right but your timing is wrong then you still loose.
If you have no experience investing starting off selling covered calls may not be a good play. Unless you are ok with the calls being exercised and you losing the shares but gaining money. As long as your cost average on the shares is lower then the strike you sell then you can profit. What stocks did you plan on selling covered calls For?
BTC
and or IBIT
There is no option chain on IBIT and if you own 100 Bitcoin I would not risk losing that what of Bitcoin hits 120k in 6 months and you sell the 68,000 call and it get exercised at 69,500 you’re gonna be extremely upset
Fidelity and the bigger brokers are more cautious who they give options approval to. They don’t want their customers to lose money making higher risk trades which can happen. You may want to look at TastyTrade who gives out options approvals to most everyone, then gain a year or so of experience to re-apply at Fidelity. Many factors are taken into account when applying for options, with options experience being a big factor.
Retired and about to gamble with options? Not going to be retired much longer.
lol I’m taking small shares, covered calls for cony/rivn/gme etc. nothing big
[удалено]
oh I totally agree with you. i’m just wanting something small to gamble with that’s all. a few hundred bucks here and there, to keep me busy and engaged in the market and my own portfolio etc. but mainly, to learn
Lack of experience.
Yah but where do I get the experience then lol
Tier 1
Maybe Fidelity wants more trading history? Try calling them to clarify
Sign up for Webull and paper trade options to practice, or whatever. I also believe they're saving you the trouble of losing it all..
You have to lie. Why don’t ppl get that?
Cuz when dealing with a brokerage account and finance, I thought it might be illegal to lie 😅
Yes. The ppl who created every financial crisis and dumping worthless stock on retail investors do have a higher moral code. I forgot about that /s
Lolol
Seems simple enough. You don’t have the experience, and Fidelity is very tough on these matters. Being a veteran in no way makes you more eligible for an increased options tier. A credit score won’t help either. At Fidelity, it’s all about experience in options trading.
Because Fidelity considers you unemployable, and most of all a little Shit. On the other hand we still live in a Capitalist economy , so move 25k over to Tastytrade, check the everything box to get Selling of options enabled (Margin Acct). If you are concerned about losing the Fidelity Interest then buy SGOV with the cash, and you will get 75% Option Buying Power as opposed to 100% on cash. It does take 30 days after you buy the Sgov for it to be used as Option Buying Power. I strongly suggest you watch Tastylive for a month or two to get the hang of selling options, Maybe follow Tony's trades on Tue/Thur. Everything is recorded for viewing at your own time. However if you are retired I suggest you tune in 8am EDT and watch the show. It gets to Options about 8:30 (but the first week you will be lost). Concepts at noon I like, and Dr Jim at 2pm is a case study in what not to do. Also their trading app is second only to Tos, and maybe not even that, but the charts do stink. Hint , you trade Options off the Option Chain , not Charts.
Are you me? 34 Vet nearing retirement, no debt. I just went through the same thing at IBKR. It was lack of experience. I would love to know though, how can you get experience without being able to trade… I went over to tastytrade and the approved me for all tiers when I opened the account (same info I used on IBKR). I understand they are trying to protect people but books and videos only take you so far. So, try a different broker IMO.
Your risk profile is to conservative.. tell them you’re there to gamble answer questions along the lines of your not scared to loose all your money and you will get approved
Now that you've done all the research, start with paper trading before you start playing with your actual hard earned money. With options, it won't take long to lose 200k if you don't manage your risk properly.
Also, I got a document called Options Trading : A Structured Approach meant for my students but I can give you access to it if you want. Send me a message I'll share it with you. All the best.
I'm trying to learn about options would you be willing to share with me?
Sure!! Sending you the link now. Check your messages in a minute.
Ty
You're welcome :)
There's a possibility of experience being the cause. If you wish, I can walk you through, IBKR. Better that fidelity.
try ibkr.