To buy and sell options on underlying financial instruments that trade on major U.S. exchanges, you must have a Vanguard Brokerage account and be preapproved by Vanguard Brokerage to trade options in that account.
Our brokerage associates are available to answer your questions at 800-992-8327 on business days from 8 a.m. to 10 p.m., or on Saturdays from 9 a.m. to 4 p.m., Eastern time.
Submit your application Complete and submit a Vanguard Brokerage Option Application, one for each brokerage account that you intend to use for options trading.
Note: If you don't already have a Vanguard Brokerage account, you'll also need to open an account.
Getting approval In reviewing your application, we'll consider your account type and the information you provide about your finances, trading experience, and investment objective.
You'll receive notice of your approval or denial by mail.
We have four levels of options approval:
Level 1. Write covered calls, purchase protective puts, and write covered puts. (Margin approval is required to write covered puts.) Level 2. Purchase calls and puts. Write cash-secured puts. (Includes Level 1.)* Level 3. Trade equity and index spreads. (Includes Levels 1 and 2.)** Level 4. Write uncovered (naked) puts. (Includes Levels, 1, 2, and 3.) **
* Available only through an associate. Call 800-992-8327.
** Available only through an associate. Call 800-992-8327. You must complete a Margin Account Agreement to be considered for these trading levels.
Options are a leveraged investment and aren't suitable for every investor. Options involve risk, including the possibility that you could lose more money than you invest. Before buying or selling options, you must receive a copy of Characteristics and Risks of Standardized Options issued by OCC. A copy of this booklet is available at theocc.com. It may also be obtained from your broker, any exchange on which options are traded, or by contacting OCC at One North Wacker Drive, Suite 500, Chicago, IL 60606 (888-678-4667 or 888-OPTIONS). The booklet contains information on options issued by OCC. It's intended for educational purposes. No statement in the booklet should be construed as a recommendation to buy or sell a security or to provide investment advice. Call The Options Industry Council (OIC) helpline at 888-OPTIONS or visit optionseducation.org for more information. The OIC can provide you with balanced options education and tools to assist you with your options questions and trading.