Options trading with a small account? (<$2k)

[zerosum 0]

Hi, I'd like to get started with options trading because the upfront costs of options are very low, relative to owning the stock. However, what I didn't realize is that there are multiple barriers to doing so. One of them being my broker's "permission levels," which won't even allow me to setup a vertical spread. Is it even possible to trade options beyond "covered calls" with a small account?

Also, TastyWorks seems to offer options trading with a $2k new account. What's the catch?

https://tastyworks.com/

[Rob C 826]

On 11/24/2020 at 6:52 PM, zerosum said:

Hi, I'd like to get started with options trading because the upfront costs of options are very low, relative to owning the stock. However, what I didn't realize is that there are multiple barriers to doing so. One of them being my broker's "permission levels," which won't even allow me to setup a vertical spread. Is it even possible to trade options beyond "covered calls" with a small account?

Also, TastyWorks seems to offer options trading with a $2k new account. What's the catch?

https://tastyworks.com/

Sorry for the delay in responding, but I am just getting back into reading the forum again. Hopefully you will still read this.

I like Tastyworks and started with a small account there as well. I also like their TastyTrades channel. When I started with a small account I only traded vertical spreads. It was perfect for a small account since you get quite a bit of leverage with a built in max loss stop. Since you are only paying for the spread not the option they are dirt cheap and easily affordable for a small account.