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You have to actually go through a short process to be "approved" to trade options, including checking off a box saying "I know how to trade options". Maybe the
by AcerbicZero 6y ago
You have to actually go through a short process to be "approved" to trade options, including checking off a box saying "I know how to trade options". Maybe there should be additional warning signs, but RH does make it pretty clear that there are many options trades where you can lose much much much more money than you put in. Just take a look at what happened with oil and USO recently for an example of how stupid this can get.
Like I said elsewhere, its horrible this kid killed himself over something as transient as this, and RH's interface is pretty dumb, but if you're selling uncovered put spreads, and covering them with call spreads and you're doing all of this in RH....well you're either much better at RH than I am, or much worse.
- philsnow 6y agoWhen I applied for options trading approval, I got a phone call from Schwab with a quiz on some hypothetical trading scenarios, like "if you did X what would your maximum exposure be"?
- moronicalox 6y agoOn both RH and TastyWorks all I had to do is check a box saying I knew how to do it. I'm curious about other people's experiences.
- shmoogy 6y agoFor what level of options trading, 3? 4?