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TD Waterhouse put options


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In the last 10 years I have only done basic equity buy and sells

I would like to consider buying put options through TD Waterhouse my online broker

 

Does this require a change to my account and how do I go about making the changes necessary to use the occasional put option. 

 

Thanks for any input

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You will need to switch to a margin account and apply for options trading permissions if you haven't already done so.  They will send you a booklet describing the 'characteristics and risks of standardized options.'  Not all brokers require a margin account to purchase long positions in options, but it appears that TD Waterhouse does.  Similar to the other thread on this board describing margin approval at Merrill Lynch, you will probably need to indicate you are experienced in trading any securities you want approval for.

 

Be careful buying options, even for hedging.  Make sure you know what you are doing.

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Thank you

And thanks for your concern re knowledge of these as I have the same concerns

Could you point me to a good put option for the overall market that limits my losses

To only my investment.  I want to be sure I'm not taking on any hidden risk

 

 

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You will need to switch to a margin account and apply for options trading permissions if you haven't already done so.  They will send you a booklet describing the 'characteristics and risks of standardized options.'  Not all brokers require a margin account to purchase long positions in options, but it appears that TD Waterhouse does.  Similar to the other thread on this board describing margin approval at Merrill Lynch, you will probably need to indicate you are experienced in trading any securities you want approval for.

 

Be careful buying options, even for hedging.  Make sure you know what you are doing.

 

This has been my experience as well, to get a 'trading account' you have to be an experienced investor, so you have to fill in a questionnaire attesting to it.

 

They don't check very thoroughly though, but obviously you should understand the risks you are taking with access to leverage and trading on margin.

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