Option Approval Levels

The Option approval level dictates what types of strategies you can employ in your Schwab account. In order to see the trading level your account is approved for look in the header of the Account Details window.

Option Trading Approval Levels
Level	Allows you to place:
0	Covered Calls Covered Puts Buy-Writes Unwinds Covered Rollouts
1	All of Level 0 plus: Long Calls Long Puts Long Straddles Long Combinations Long Strangles Cash Secured Equity Puts (CSEP)
2	All of Level 1 Plus: Spreads Diagonal Call Spreads Diagonal Put Spreads Ratio Spreads (long side heavy)
3	All of Level 2 Plus: Uncovered Calls Uncovered Puts Uncovered Roll-outs Short Straddles Short Combinations Short Strangles Uncovered Ratio Spreads

If you decide that you would like to apply to upgrade your option trading level, please complete a new Option Trading Application. Schwab will evaluate your application and send a confirmation of the option trading strategy approved for your account.

Options carry a high level of risk and are not suitable for all investors. Certain requirements must be met to trade options through Schwab. Multiple leg options strategies will involve multiple commissions. Please read the options disclosure document titled "Characteristics and Risks of Standardized Options." Member SIPC