Getting Approved for Spreads

Most brokers require additional approval before you can trade spreads (credit spreads, debit spreads, iron condors).

Typical approval levels

• Level 1: covered calls / cash-secured puts (basic).

• Level 2: spreads (credit/debit spreads, iron condors), this is what most spread-based bots require.

• Level 3: naked selling (often not needed for defined-risk bots).

Tips to improve approval chances

• Complete any broker options education modules they offer.

• Be honest, but don’t undersell your experience/knowledge (brokers may deny ‘0 experience + low risk tolerance’ profiles).

• If denied, reapply later (often 30–60 days) after more education or paper trading.