In this article:
Overview
You can enable options trading for US securities directly within your Wealthsimple account to access a wider range of investment opportunities. Options trading isn't available for all account types, and you'll need to meet certain eligibility requirements to get started.
Eligibility requirements
To enable options trading, you must:
- Have an eligible self-directed investing account with Wealthsimple.
- Complete an options trading application and be approved by Wealthsimple. This application helps us understand your investing knowledge and risk tolerance.
You can trade options in the following account types:
- You can buy and sell long calls and long puts in any self-directed investing account.
- You can hold covered calls in self-directed registered accounts and margin accounts.
- You can sell secured puts only in margin accounts.
How to enable options trading
Follow these steps to enable options trading in your Wealthsimple account:
- Log in to the Wealthsimple app on your mobile device
- Tap the Profile icon in the top-right corner
- Select Accounts
- Choose the self-directed investing account where you want to enable options trading
- Under Account features, tap Enable options trading
- Follow the on-screen prompts to complete the application, which includes questions about your investment experience and financial situation
- Submit your application
- Log in to your Wealthsimple account
- In the Search name or symbol field at the top of the page, type in and select the name of the stock you want to trade options on
- Scroll down to your Holdings
- Select Learn more on the Explore options trading banner
- Select Start trading options to complete your options application process and enable the feature in your accounts. If you're not a seasoned pro, you'll need to read through some additional educational content
We'll review your application and notify you of our decision via email, typically within 1–3 business days.
Available options strategies
Wealthsimple offers four options trading strategies:
- long call options
- long put options
- short call (covered) options
- short put (secured) options
At this time, we don't support the following option trading strategies:
- short calls (uncovered)
- spreads
Important considerations
- Options are complex investments: Options trading involves a high degree of risk and isn't suitable for all investors. It's crucial to understand the potential for significant losses.
- Approval isn't guaranteed: Approval for options trading depends on several factors, including your investment profile and our internal risk assessments.
- Additional resources: We strongly recommend getting familiar with options strategies, risks, and terminology before you begin trading. Check out our Related articles section for more information.
Frequently asked questions
Why was my options trading application denied?
We may deny your application for various reasons, including your investment experience, financial situation, or if you don't meet our eligibility criteria. We're unable to provide specific reasons for individual denials.
How long does it take to get approved for options trading?
Once you submit your application, it typically takes 1–3 business days for us to review and notify you of our decision.
Can I disable options trading?
Yes. Please get in touch with our support team if you want to disable options trading.
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