Unable to use Cash secured Puts
- Main Problem: The user is unable to sell cash-secured puts due to an error message indicating that their account does not support the option.
- Solution Offered: The user is advised to confirm their options trading approval level since the error suggests their account might not be approved for the specific option type.
- Options Trading Tiers: Fidelity outlines three trading tiers, with the user’s account potentially only allowing certain trades (e.g., covered calls, buying calls and puts) but not cash-secured puts.
- Next Steps: The user is encouraged to review their options trading tier and consider contacting Fidelity for further assistance or to potentially reapply for a higher trading level.
Here’s the full thread
Whenever I try to use Cash secured puts by selling a put option, I get a message – This order will leave you with an option that your account doesn’t support. Can you please help add cash secured puts access to my account.
Hey there, @DB.
When this error occurs, it generally means that the trade you are attempting to complete cannot be supported in your account because it will leave an options contract and your account is not approved for options.
To confirm, have you been approved for trading options and are receiving this error?
Let us know, and we’ll follow up with the relevant information needed.
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(https://www.theocc.com/Company-Information/Documents-and-Archives/Options-Disclosure-Document). Supporting documentation for any claims, if applicable, will be furnished upon request.
Yes, I’m already approved for trading options on my account. I was easily able to do covered calls and buying call options. Only when I tried sell a put, it gave me that error message
@FidelityCourtney ^
We offer three different options trading tiers that determine the options trades you are able to place.
Tier 1: Sell covered calls, buy writes, buy calls and puts, sell cash-covered puts
Tier 2: Spreads, sell short stock secured puts
Tier 3: Sell uncovered calls/puts on equities and indices.
You can learn more about trading options at Fidelity using the link below.
Trading FAQs: Options https://www.fidelity.com/options-trading/faqs
Options approval decisions are based on trading experience (including experience trading stocks/ETFs, mutual funds, bonds, etc.), financial situation, and investment objective. When an application is reviewed, a notification is sent indicating what level the account has been approved for. We approve an applicant for the highest level for which they are eligible, up to the level requested. Although we do allow clients to reapply as their circumstances change, margin and options applications may be subject to a cooldown period if there are multiple applications within a short window of time.
Please take some time to review the resources. If you have additional questions or would like us to review your account with you, please give us a call. Representatives are available 24/7 and can be contacted through the link below.
Contact Us: https://www.fidelity.com/customer-service/contact-us 🟢