What are the different levels of option trading available at Fidelity?
Below are the five levels of option trading, defined by the types of option trades you can place if you have an Option Agreement approved and on file with Fidelity. The option trades allowed for each of the five option trading levels: Level 1 Covered call writing of equity options. Level 2* Level 1, plus purchases of calls and puts (equity, index, currency and interest rate index), writing of cash covered puts, and purchases of straddles or combinations (equity, index, currency and interest rate index). Note that customers who are approved to trade option spreads in retirement accounts are considered approved for level 2. Level 3 Levels 1 and 2, plus equity spreads and covered put writing. Level 4 Levels 1, 2, and 3, plus uncovered (naked) writing of equity options and uncovered writing of straddles or combinations on equities. Level 5 Levels 1, 2, 3, and 4, plus uncovered writing of index options, uncovered writing of straddles or combinations on indexes, and index spreads. * Retireme
