What Can I Trade?
The Advanced Options Plan unlocks Level 4 multi-leg strategies, including selling to open. These rules apply to both your Evaluation and your Performance Account.
Can I… | Advanced Options |
Buy calls or puts | Yes |
Sell to open (write options) | Yes |
Trade vertical spreads (debit and credit) | Yes |
Trade iron condors, butterflies, straddles and strangles | Yes |
Sell puts | Yes, cash-secured only |
Trade covered calls | Yes |
Buy shares on their own | No, only as part of a covered call |
Use margin | No |
Hold positions overnight | No |
Contract or position size limits | None |
SPX, XSP and VIX
On SPX, XSP and VIX, you can only buy single-leg calls or puts. Spreads of any kind, including defined-risk credit spreads, and selling to open aren't allowed on these three symbols.
All multi-leg strategies are available on every other underlying ticker.
Closing Time: 3:59pm EST
All positions must be closed by 3:59pm EST every trading day, whatever the strategy or expiration. Any position still open at 3:59pm EST is automatically closed at market price.
Tip: Close your positions yourself before 3:59pm EST. An automatic close at market price may fill at a worse price than you expect, especially on multi-leg positions.
Frequently Asked Questions
Can I trade a credit spread on SPX?
No. On SPX, XSP and VIX, you can only buy single-leg calls or puts.
What does cash-secured mean?
You need enough cash in your account to buy the shares if the put is assigned. Margin isn't used.
Can I buy and hold shares?
No. Shares can only be bought as part of a covered call, where you sell a call against them.
What happens if I forget to close a position?
It's automatically closed at market price at 3:59pm EST.