I am opening this thread because yesterday while using the strategy lab window on one of my trades TWS showed me a message like: "Some strategies are hidden because of your permissions, upgrade your account to trade them." Something like that, I don't remember the exact wording and I can't see the message again. It looks like it was just a TWS hiccup, because as far as I understand if I am able to write naked puts I should be able to trade anything. This looks like a newbie question but the message got me wondering if there is any synthetic shit that I am not aware of. What do you think, can you throw at me any options strategy that I wouldn't be able to trade?
Naked calls are within the same group of permissions as naked puts. https://www.interactivebrokers.com/en/trading/margin-options.php
Yes... puts too. Writing naked is dangerous! However, you may be able to write "cash-backed" puts... that is, you have cash in your account to honor your put contract(s) if exercised. However, that ties up your capital until your put obligation is satisfied.
IB considers naked puts "Level 3" "Level 4" will give you, naked calls, short straddle, short strangle, short synthetic calander spread, credit diagonal spread where long leg expires first. Here is the list, Options Level Trading Permissions
short naked call has the highest margin requirement per my understanding, even for a downtrend stock.
Writing naked puts is level 3 with IBKR. Short put is a synthetic buy write so it should be level 1, but I can't run the scenario as I don't clear IBKR. lol no. A short put is defined risk. A short call is not. Here noob, this took me 0.11 seconds (per Google): https://www.ibkrguides.com/clientportal/optionstradingpermissions.htm