The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again at optionalpha.com and welcome back to the daily call. Today, we are going to be talking about why I think broker approval levels are causing more traders to actually lose money. I’ll go a little bit against the grain here on this because I understand in theory why brokers have trading approval levels and I get the concept behind why they have it. They have it in place, so that they basically don't give you access to something that you can't handle. But I think that it's been something that hasn't been changed in so long that they don't even have a good understanding of what access is. Most broker approval levels will go through a very simple process where your first or second level of approval will allow you to trade options, but only single options and then usually covered calls. I think this is where the problem lies. The problem lies with just that first or second level, depending on what broker you’re at, in allowing you to trade covered calls and then allowing you j