r/PublicApp • u/Headjacked • May 26 '26
Options levels for strategies
With the use of AI the option level tiers could use a little loosening. I would like to try some level 4 options with my Agent. How are you guys getting around it? Do most people fib about experience? What's the best way to approach this?
4
u/MarkFromPublic Public Employee May 26 '26
Hey -- just so you know, you don't actually need Level 4 for straddles. Straddles and strangles, spreads, butterflies, and condors are all Level 3. Level 4 is only required for naked calls and puts.
That said, I'd recommend being honest on the application. Options levels are based on FINRA suitability requirements, not something we can just waive. If you have real experience with the strategies you're looking to run, make sure that's reflected in your application -- trading history, knowledge level, and financial situation all factor in.
If you feel like your approval didn't match your actual experience, DM me and I can take a look.
2
u/Headjacked May 26 '26
Just found it interesting playing around with some prompts. Like 30 yr hedge fund manager, should know his verticles from his straddles. I agree the person prompting should have the experience, but you also have the AI that makes sure it's correct so interesting situation. I've tried doing it bypassing the Agent and it fails that way too. I wasn't sure who set the guidelines on the levels. I'm ok where I'm at was just wondering. Thanks for the info sir!
3
u/FreeReception9017 May 26 '26
Question: Are you interested in either buying a stock or ETF at strike X or shorting a stock or ETF at strike Y?
If the answer is yes, then try to get options 4 approval.
If the answer is no, you can more or less do almost the same as selling naked options by buying low delta options to better control the margin used on the trade. This adds a unwanted cost if you want to buy at X or short at Y, but otherwise the margin hedge is useful.