I discovered on ToS. I started with a small account, to show how it can be built up. My starting point was $2,007. I have full options approval (Level 4). Normally they want you to have $5k buying power with Level 4 in case you sell naked calls, like one of the legs of the SLV Strangle. Well, they let me sell it, but then they restrict trades after that, telling me I need to add $3k to get above the platform limits for Level 4. They aren’t sure why the platform let me buy the Strangle in the first place. So, I have some choices…
- Wait for the trade to play out, and hopefully take a profit, and clear up the buying power hold
- Close the Call leg of the trade, and let the Short put ride
- Exit the trade all together and take a small $2 loss
- Add $3k to the account.
After playing with a number of options, all which costs me money, I’m going to just close the trade, because it’s not appropriate for my account right now, and free up the buying power to add trades that offer a better deal. That’s choice #3.