If you’re interested in risky trading rather than long-term investing, ShareBuilder [affiliate] is now offering options trading. They offer covered calls as well as buy calls and puts. There don’t seem to be any fees above and beyond ShareBuilder’s standard trading fees and commissions.
ShareBuilder offers a short guide to options for those who are new. In order to begin trading options, you have to apply for the program. The application asks about your investing experience, objective, and net worth. ShareBuilder also verifies your annual volume of stock, bond, and options transactions. Judging from the level of detail in the questions asked, the company wants to make sure that any investor approved for the program already has experience in options trading.
Here’s the full text of ShareBuilder’s emailed announcement.
November 17, 2006
Dear Flexo,
I would like to notify you about an important new service that is now available — Options Trading.
Last month, we introduced a new feature for customers: you can now buy and sell stock options in your ShareBuilder account. Our options trading tools have been designed like the rest of the ShareBuilder service — straightforward and easy to use. Option trades are not for everyone as they carry greater risk*, so our brokerage professionals must approve your account and activate this feature before you place trades. You can learn more about options and apply to have your account approved for options trading by clicking here.
Thank you for your business.
Sincerely,
Jeff Seely
Chairman and CEO
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