Options approval level
Definition · Level 1 · Options basics
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The set of option strategies a broker permits an account after reviewing its experience, objectives and finances. Tiers and numbering differ by broker; this course's reference ladder runs from covered positions (1) to naked short options (4).
Example
On the course ladder, a Level 1 account can write covered calls but not buy puts; many brokers allow long options in their first tier.
Rules and market figures change: check the current ones before relying on this.
Where Tradecraft teaches it
Level 1 · Options basics, in the lesson “Payoff diagrams & approval levels”: The four basic hockey sticks, P&L before expiry, and why brokers tier permissions.
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