Option Approval Level (Balances Row)

The option approval level will determine what options strategies you will be able to employ in the account. In general terms, the levels are defined as follows:

• Level 0 - No options trading allowed.

• Level 1 - Writing of Covered Calls, Buying Protective Puts.

• Level 2 - Level 1 + Buying Calls, Buying Puts, Writing Covered Puts.

• Level 3 - Level 2+ Stock Option Spreads, Index Option Spreads, Butterfly Spreads, Condor Spreads, Iron Butterfly Spreads, Iron Condor Spreads.

• Level 4 - Level 3 + Writing of Naked Puts (Stock Options).

• Level 5 - Level 4 + Writing of Naked Puts (Index Options), Writing of Naked Calls (Stock Options), Writing of Naked Calls (Index Options).

These levels vary depending on the funding and type of account.