Fidelity $1 Million Requirement for 0DTE SPY Options
Summary of User’s Concern and Solutions Discussed:
- The main problem reported by Jeremy is the requirement of having a $1 million balance in an individual account to access 0DTE SPY options, rather than a combined portfolio balance across multiple accounts.
- Fidelity representatives clarified that the $1 million requirement applies at the individual account level, not across the entire portfolio.
- Fidelity acknowledged the feedback regarding the restrictions and mentioned they would pass it along to the appropriate team for review.
- Jeremy expressed a desire for more flexibility and suggested that a liability waiver could allow experienced traders to access 0DTE SPY options, similar to other index options.
Here’s the full thread
Is the 0dte option trading for spy a 1 mil balance requirement on the individual account itself or would a portfolio balance of 1 million across all my accounts also enable me to get access to 0dte spy options?
Hi @Jeremy, welcome to our Discord Server. Happy to assist.
Currently, an account level net worth minimum of $1 million is required to open equity options that expire the same day at Fidelity. Please note that this minimum does not apply to index options.
Please keep in mind, Fidelity has a risk mitigation process where every account that has an expiring option is reviewed on its expiration date, to ensure that the exercise or assignment of the expiring contracts in the account can be supported. If exercise or assignment cannot be supported (i.e. insufficient buying power or equity, creating cash debits or short positions in a non-margin account, etc.), Fidelity reserves the right to close the contract prior to expiration per the terms of our Options Agreement. This is our procedure and it is not able to be requested to be disabled.
Options trading entails significant risk and is not appropriate for all investors. Certain complex options strategies carry additional risk. Before trading options, please read the Characteristics and Risks of Standardized Options(http://www.optionsclearing.com/about/publications/character-risks.jsp). Supporting documentation for any claims, if applicable, will be furnished upon request.
My account portfolio of multiple trade accounts, individual, roth, 401k, hsa, hit 1 million net worth but I see the restriction on 0dte spy till.
I’m happy to clarify this for you!
The $1 million requirement is at the account level rather than your portfolio as a whole. In other words, it goes off of the single account’s net worth rather than your entire portfolio’s net worth. 🟢
Ah gotcha. Dang I am too much of a peasant to get 0dte spy option trading then still for now 😭. Wish fidelity let me fill out a liability waver saying I know what I am doing and to let me 0dte spy anyways just like it lets me 0dte spx right now(spx is arguably riskier imo lol).
It really comes down to risk mitigation as we previously mentioned. I can absolutely take this thread as feedback and pass it along to the appropriate team so that they can review it. 🟢
Sure, i have seen many on reddit asking for it too and most brokerages don’t limit their customers flexibility to 0dte with indexs like SPY. Use at your own peril is a good approach I think for those who know how to play the volatility.
Fidelity used to not limit it long back but I guess had enough accounts blow up from bad traders trying to protect us from ourselves but some of us know the risks and don’t want limitations.