At TD Ameritrade, you must apply for options trading privileges.
To get started, log into your TD Ameritrade account,
hover your mouse over Client Services,
and under My Profile, select general navigate below
and to the right, and under Elections and Routing,
you will see Options Trading.
To the right, click the link that says Apply.
Before submitting your application,
it is important to review and verify
that all of your information is correct and accurate.
If you need to make any changes, click the word Change
next to any of the information headers.
Keep in mind your responses will affect the options level
that you are approved for.
Make any necessary adjustments, and when you're ready,
click Save.
Once you're ready, click Submit to submit the application.
Based on your information, you may
be approved for one of four option privilege levels--
covered, standard cash, standard margin, or advanced.
Starting with Covered and moving up into Advanced,
each level will grant permission to trade specific options
strategies.
As you move from one level to the next,
more advanced option strategies will become available.
It is important to note that the standard margin
and advanced levels of options trading require margin.
If you don't already have margin on your account
and are approved for one of those levels,
this application will serve as applying
for both margin privileges and the options trading
with one application.
In this example, based on the account type
and the information that was provided in our example
application, this account is eligible
for the standard margin options level.
This includes covered calls, cash-secured puts,
married puts, buying calls and puts, covered puts,
and spread trading.
And don't forget-- if you're applying
for both margin and options, it's
important to review the Margin Handbook, Margin Disclosure
Document, as well as the Margin Trading section of the Client
Agreement.
If you would prefer a lower level of options trading
or don't want to add margin to the account,
click the arrow next to View All Eligible Options levels
and change the level to Standard Cash or Covered.
When you choose a level, be sure it includes the option
strategies you plan to trade.
The strategies available with each level
are shown with a checkmark.
Once you've selected the appropriate options level,
scroll to the bottom of the page.
Before you submit your application,
it is important to read and review
the Options Trading section of the Client Agreement
as well as the characteristics and risks
of standardized options.
Next, checkmark the box to provide legal signature
and acknowledgment of the receipt
of the above options and margin disclosures and agreements.
It will also review what you already applying for.
In this case, we are applying for both margin
and standard margin options privileges
and also agreeing with the Margin and Options Agreements.
Once you're ready, click Submit.
As you can see, our example account
has been officially approved for both margin and standard margin
options.
These privileges will be added to the account
within one business day.
On the left, a list will confirm the strategies
you've been approved for, and to the right,
educational resources will be available to help familiarize
yourself with options trading and margin capabilities,
including the Margin Handbook.
Once your account has been approved for options trading,
you can confirm your level by navigating to Client Services,
and under My Profile, click General.
Below and to the right under Elections and Routing,
your options level will be listed
to the right of options trading.
In this example, we've been approved for standard margin.
Keep in mind it will take one business day
for this page to be updated and reflect your current option
level.
If you would like to apply for an upgrade
from your current options level, click the link Apply
for Upgrade.
Prior to applying for an upgrade,
the left-hand side of the screen will
list your current options trading level
as well as the approved option strategies associated
with that level.
Below, you will see a list of the options strategies
you will be applying for with your upgrade.
When you're ready, click Apply for an Upgrade to proceed.
You will be placed once again on the Options Application page
that we saw earlier in the video.
If any of your information has changed
since your first application, especially your trading
experience or financial situation,
make sure those items are changed
to reflect your current status.
Once you've made any necessary changes and updates,
click Submit and then Submit again.
Once you have received your notification
that your account has been upgraded,
review all the necessary disclosures and documents,
checkmark the Signature box, and click Submit.
And now you can see our account has been upgraded to Advanced
Options level, and these privileges
will be added to the account within one business day.
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