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I have been trading stocks for 10 years and just started to trade in options last year. When I applied for options trading, my broker (ETRADE) only approved me for level 1 (writing covered calls) and I have been doing that for 1 year. I applied 3 times to have it upgraded so I can include long calls and long puts in my strategy, but my applications are declined.

I’m confused as to what is required to qualify for level 2. A friend said he thinks only persons with net worth of $10 million qualify, but that seems high. I have a modest income and a decent net worth, but nowhere near $10 million.


Some related facts:


- 32 year old
- Self-employed with individual income averaging $50,000 annually
- Married with 1 dependant
- Individual net worth of ~$400,000
- Liquid net worth ~$200,000
- Average 40 stock trades per year (10 year experience)
- Average 4 options trades (write covered calls) per year (1 year experience)