Yes it is a naked put (like in settlement fund has no funds, even though rest of account positions have sufficient funds which probably doesn't matter here)So was this a naked put?
https://www.optionstrading.org/getting- ... ng-levels/Just because one has a margin account does not mean that one can do all kinds of options trading. As I understand it there are different "Levels" of option trading permission that one has to get authorized for from their brokerage. Often this is based on experience with using the lower levels.
Trading level 3 would usually allow the writing of options for the purposes of creating debit spreads. Debit spreads are options spreads that require an upfront cost and your losses are usually limited to that upfront cost. Although debit spreads involve writing options without a corresponding position in the underlying security, the losses are limited by having multiple positions on options contracts based on that same underlying security.
I checked my trading profile, I have Trading level 3, but it says
- Buy Calls and Puts, and Write Cash-Secured Puts. Write Covered Calls, and Write Covered Puts.
- Only when I am assigned
Now itself, as I did a naked put
Looks like if I do not have margin, it would be a mistake that the trade went through. Maybe the trade went through backed by my margin.Your questions are probably better asked of a competent Vanguard options desk CSR. It could even have been a mistake that your order went through.
I will contact VG, but they more strict/stingy than us, didn't waive even few cents (schwab did in similar case when I pulled funds before settlement)
https://personal1.vanguard.com/pdf/margin.pdf Also probably I won't incur "trading violation" from this doc, as I had margin enabled?
Statistics: Posted by RetireGood — Tue Sep 03, 2024 4:15 pm — Replies 4 — Views 255