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Author: w4fool Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 264912  
Subject: Option approval Date: 10/1/2012 10:23 AM
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WellsFargo just gave me approval to trade option at level 2. My problem is I don't understand the offered trades when I click trde options. They are "Buy put to close and "Sell put to close. How can I by a put to close If I can't seel a put to open?

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Author: philippalmer Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 259372 of 264912
Subject: Re: Option approval Date: 10/1/2012 11:02 AM
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A caveat to your previous post, in selling a put to open, you are writing a put, and taking the sell side of the contract, which means you will either be naked, and using margin or using cash to secure that put. Your level two privelege will not grant you the right to sell to open puts until you get margin approval at WF.
The only Sell to Open you should see is the ability to sell open calls, covered of course, meaning you are writing calls against stock you already own.

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