To fully utilize the Options Auto Trader, your brokerage account must have the correct options approval level. Different brokers have different approval requirements, so it’s essential to understand what level you need to execute your desired trades.
For the best experience with Options Auto trader, it is recommended that you have at least $25,000 in your account. This account size ensures you can access all option selling strategies, maximizing profitability and covering the cost of your subscription.
Each brokerage has different option trading levels that determine what strategies you can use.
Here’s a breakdown of key approval levels using Tastytrade as an example:
The Works Approval:
Full access to all strategies, including defined risk and undefined risk trades.
Allows selling naked puts and naked calls.
Enables trading on futures.
IRA Works Approval:
No naked put selling allowed.
You must use strategies like spreads to manage risk.
Best suited for accounts with IRA restrictions.
Basic Margin Account:
No naked calls or futures trading.
Can trade spreads and naked puts.
Limited Approval:
Only spread trades allowed.
The Options Auto trader can only execute trades that your broker has approved. If you receive an error or notice that your trade won’t execute, check with your broker to confirm your approval level.
Common Errors You Might See:
“Not approved for futures trading.”
“Not approved for selling puts.”
If your approval level restricts certain trades, adjust your Options Autotrader bot accordingly:
If you can't sell naked puts, consider using spread-based strategies (e.g., IRA 1-1-2-2 bot).
If you only have spread approval, avoid trying to trade naked options.
If you want full access, ensure you request unlimited risk approval from your broker.
Each broker has different approval categories. For example:
Schwab uses levels like Limited Risk, Moderate Risk, Increased Risk, and Unlimited Risk.
Tradier has its own set of approval levels that define what you can trade.
TastyTrade uses different account types
Ensure your account has at least $25,000 for full strategy access.
Check your broker’s options approval level to confirm which trades you can execute.
Adjust your trading bot based on your approval level to prevent errors.
Contact your broker if you need a higher approval level for certain strategies.
By following these steps, you can smoothly execute trades and make the most of your Options Auto Trader strategies.
TERMS OF SERVICE: Please be aware that continued use of the Options Auto Trader is subject to our Terms Of Service. If you have any questions or wish to review these terms, feel free to visit the website.
