Chris & Group,
Schwab is probably the most "stingy" (they call it conservative) with option approval. They will "allow you" level 0 to trade covered calls if you appear to understand options. If you want higher approval levels you must reapply each six months to "move up a level" and hope they approve your account! I have level 1, the highest you can go on an IRA which allows covered calls, Cash Secured Puts (CSPs) and the purchase of long Puts and Calls.
I pointed out to a few reps on the option desk that if I sold a CSP and bought a put on the same underlying I have created a spread, My question was , why can I not place that as a spread order. They agree and the latest is,,,,,it is under review to allow spreads in IRA accounts. I put up with this "stodgy" attitude due to the great international services Schwab offers as I am contemplating overseas retirement soon. I believe most brokerage firms are far more generous with option approval.
Regards,
Jack
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