Option Agreement

All new option accounts must be approved by the registered option and security futures principal prior to the first option trade. An option investor must sign and return the option agreement within 15 days of the account’s approval to trade options. If the investor fails to return the option agreement within 15 days, no new option positions may be opened and the investor will be limited to closing transactions only until the option agreement is signed and returned. By signing the option agreement, the customer agrees to notify the firm of any significant change in their finances and the customer:

Agrees to abide by all OCC and exchange rules

Acknowledges that they have received and read the OCC risk disclosure document

Understands any long options in the money by 1 cent or more at expiration will result in automatic exercise for the customer

Understands payment, exercise and assignment terms



Related Articles
  1. Trading

    Getting acquainted with options trading

    Learn about trading stock options, including some basic options trading terminology.
  2. Trading

    Trading Options on Futures Contracts

    Futures contracts are available for all sorts of financial products, from equity indexes to precious metals. Trading options based on futures means buying call or put options based on the direction ...
  3. Trading

    Options Hazards That Can Bruise Your Portfolio

    Learn the top three risks and how they can affect you on either side of an options trade.
  4. Trading

    Beginners Guide To Options Strategies

    Find out four simple ways to profit from call and put options strategies.
  5. Trading

    Dividends, Interest Rates and Their Effect on Stock Options

    Learn how analyzing dividends and interest rates is crucial to knowing when to exercise early.
  6. Personal Finance

    Top 5 Books on Becoming an Options Trader

    For individuals aspiring to become options traders, here are five of the best books that offer help in understanding and profiting from the options markets.
  7. Trading

    Google Stock Too Expensive for You? Try Options

    Learn how to invest in Google (now Alphabet, Inc.) and other high-value stocks with less capital by using options.
Trading Center