Options Trading Online

Log in to your SoFi account and navigate to the Invest tab. From there select your Individual active investing account > Manage > Options trading.

When buying options (like calls or puts), the maximum loss is limited to the premium paid for the option. This allows investors to participate in movement of the market in their favor, while the loss is limited to the premium paid.

We’re required to evaluate whether various levels of options strategies are appropriate for members, based on information such as trading experience, investment objectives, and financial situation. Different brokerages are able to set specific parameters (e.g., account equity) based on their discretion. If you’re approved to trade options at SoFi, you can execute long calls and long puts.

You can reapply after 7 days if you believe you made a mistake in answering the questions. If you apply for a second time and do not get approved again, you must wait 90 days before applying for a third time.

There are several option trading levels, each of which allows additional access to various forms of options trading based on the experience and investment objectives. Option levels are an industry standard way to determine how much risk a client should be allowed to take, with level 1 being lower risk strategies and higher levels having riskier options.

SoFi currently only supports level 2 options execution, which means you can buy calls and puts, and sell to close positions. All approved accounts are assigned to level 2 options strategies by default. Level 1 capabilities (selling covered calls and cash secured puts) will automatically be added as soon as they are available.

Level 1: covered calls and buy writes
Trading level 1 is the lowest level and it typically only permits two types of trades: a covered call sold against a long stock position in your account and a buy-write, which is buying a stock and selling a covered call at the same time. These strategies are not available yet, but are on our radar.

Level 2: long options
Trading level 2 adds the ability to buy call options and put options. This is typically the level that most beginners are allowed to start with. The key difference between level 1 and level 2 is that traders are able to make directional bets with level 2. And since they can only buy and not write options, a trader’s risk is limited to only the money used when buying the options.

No, IRA accounts are not eligible for options trading at this time.

1. Log in to your SoFi account, navigate to the Invest tab, and select your Individual active invest account.
2. Tap the magnifying glass to search.
3. Tap “Trade” on the detail page for the stock or ETF.
4. Tap “Trade options” and use the option chain search to view information about marketable options for a security.

There are many things to consider when choosing an option:

■ The expiration date is displayed just below the strategy and underlying security. You can scroll right to see expirations further into the future.
■ The strike prices are listed high to low—and you can scroll up or down to see different strike prices.
■ The break-even point is where the underlying security needs to trade at expiration for you to break even on your investment, taking into account the current value (premium) of the option.
■ The break-even percentage is the percentage change the underlying security would need to move for you to break even on the option at expiration.
■ The premium (price) is listed on the right of your screen.
■ What’s the price? The value shown is the mark price (see below).

When you buy a call, you pay the option premium in exchange for the right to buy shares at a fixed price (strike price) on or before a certain date (expiration date). Investors often buy calls when they are bullish on a stock or (other security) because it offers leverage.

You should always research the security and consider the amount of premium outlay, the strike price, and the expiration (as the longer the time to expiration, the higher the option premium). When buying a call there is unlimited upside potential, and the premium (price) paid for the option is the maximum you can lose.

Buying a put option is used to express a bearish view (which means you expect the stock price to fall below the strike price).

A put option gives the buyer the right to sell an underlying asset at a specified price on or before a certain date. Buying a put option is used to express a bearish view (which means you expect the stock price to fall below the strike price). Keep in mind that the maximum loss being the premium paid for the option.