Options Trading in eTrade

[Arnold Kameda]

Donald,

You happen to in luck because I use eTrade. I had bought the trading platform from BetterTrades, but I didn't want to switch my accounts so I just stuck with eTrade and just used the BT platform for monitoring stocks and paper trading. One of my eTrade accounts is a Roth IRA.

Once you setup the ROTH IRA account in eTrade, you can fill out an online form called the "Option Upgrade - IRA" form. You need to apply for Level 3 option trading, which will allow you to do most  type of options trading (Write covered calls, purchases, spreads, and uncovered puts (requires a margin account)). When you fill out the form, if you truly want to get the Level 3 approval, you may have to stretch the truth a bit about your option trading experience. You should say that you have at least a full-year of option trading (including spreads). When I first applied, eTrade only gave me level 1approval, and I had to wait more than 3 months to reapply before I got level 3.  If that doesn't work, you should consider another brokerage, such as "Sink or Swim", which is a lot more liberal about granting option trading to its customers.

Hope this helps,
Arnold

On Fri, Mar 6, 2009 at 4:00 PM, Donald Garwood <garwoo...@gmail.com> wrote:

Who are people using to trade options?  I'm having a tough time setting up a "Roth 401K" account.  Found that E*trade has them available, but no one I've talked to seem to be too up on the deal.

 

 

[Donald Garwood]

Wow,

 

Terrific, Arnold!  Many Mahalos!  (I was wondering how to get upgraded to a level 3 w/o experience.)  I'll let you know how it goes.  Thank you again, Arnold!

 

Donald

 

ps.  I had actually set up an initial account with Sink or Swim, but didn't fund as of yet.  And since the last BT instructor said Sink or Swim was even too difficult for him to manipulate, I never looked at SOS again.