Been trading basic options for about 6 months with mixed results. My broker keeps asking if I want to upgrade to level 2.
I understand it offers access to spreads and complex strategies, but the risk seems higher. I’ve made some costly mistakes with simple calls and puts.
Is the extra complexity worth it, or should I stick with what I know?
Blew up my account twice with naked puts before learning spreads the hard way.
Level 2 saved me from complete disaster when I started using iron butterflies on volatile earnings plays. Made back 60% of what I lost in my second month.
But honestly, those basic mistakes you mentioned will just get more expensive with complex trades.
Your losses with basic options indicate gaps in risk management.
Level 2 access allows:
• Covered calls - income generation
• Protective puts - downside protection
• Iron condors - range trading
Fix position sizing and timing issues first. Complex strategies amplify poor fundamentals.
Level 2 can actually help manage risk better if you learn spreads properly. Credit spreads limit your downside compared to just buying calls and puts outright.
Starting small with basic spreads like bull call spreads or cash secured puts is key. These strategies generate income while reducing the all-or-nothing risk of straight options buying.
If costly mistakes with basics are still happening, focusing on perfecting those first might be wise. Level 2 won’t fix fundamental issues with timing or position sizing.
Spreads cut my losses by 40% compared to naked options trading.