Author Topic: Questrade account options - calls and puts  (Read 2080 times)

FrugalFan

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Questrade account options - calls and puts
« on: June 08, 2015, 02:00:28 PM »
Okay, so I just tried to open some Questrade accounts and I have to choose account options on the first screen. I've read 5 investing books and various online entries and I have no idea what these mean! Help?

Long calls and long puts
A call is an option contract giving the owner the right to buy a specified amount of an underlying security at a specified price within a specified time. A put is an option contract giving the owner the right to sell a specified amount of an underlying asset at a specified price within a specified time.

Covered calls and covered puts
Covered calls are an option strategy whereby an investor holds a long position in an asset and writes (sells) call options on the same asset. Covered puts are a strategy whereby an investor holds a short position, and writes (sells) put options on the same asset.

Spreads
A spread is an options position established by purchasing one option and selling another option on the same security. To qualify as a spread, the options bought and sold must both be calls or puts.
Uncovered options. A written (sold) call or put is uncovered (naked) when the option is not a part of a covered call, covered put, spread, short straddle, strangle, or combination. Short straddles, strangles and combinations occur when selling both calls and puts on the same security.

None
You will not receive access to free options data if you select no options. You are not required to trade options, however you can receive free data if you select an option level.

KMMK

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Re: Questrade account options - calls and puts
« Reply #1 on: June 08, 2015, 02:34:15 PM »
You don't want these. There's no reason for the average investor to deal with options and what-not.

In your other thread where I talked about TD, that's what I meant when I said the bank asked about what type of RRSP account I wanted. If you want to borrow to invest, trade options, etc they give you a different account type. With TD you just want the cash account (you put money in, you buy e-series with that money and that is all), none of this fancy stuff.

Same for Questrade. I'd pick "none". I'm sure there's a way to change your settings in the future if you become really interested in this stuff and want to invest like that.

fb132

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Re: Questrade account options - calls and puts
« Reply #2 on: June 08, 2015, 02:46:38 PM »
I select "None", by the way, this link give you a walkthrough on opening an account https://www.youtube.com/watch?v=7Okw7S1h2cE

FrugalFan

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Re: Questrade account options - calls and puts
« Reply #3 on: June 08, 2015, 07:21:51 PM »
Thank you both! I will select "none" for now.