Options Levels

Options trading and options strategies have varying degrees of risks.

In order to evaluate whether a specific investor understands the risks associated with each level of options trading, your experience, risk tolerance and financial objectives must be evaluated.

Commonly Asked Questions:

What are the typical Options Levels typically available at online brokerage firms?

Level 1

Covered Calls
Buy Writes
Cash-Secured Puts

Level 2

Long Calls
Long Puts
Long Straddles
Long Strangles
Covered Puts
Protective Puts


Level 3

Credit Spreads
Debit Spreads
Long Butterfly
Short Butterfly
Long Condor
Short Condor
Long Iron Butterfly (Reverse Iron Butterfly)
Short Iron Butterfly
Long Iron Condor (Reverse Iron Condor)
Short Iron Condor

Level 4 

Naked Equity Puts
Named Equity Calls

Level 5

Naked Index Puts
Named index Calls