Option Trading Levels Does Not Make Sense.

[guyentlab000 10]

I have 401k transferred to brokerage account recently however the brokerage only allows level 1 trading options which is

- covered calls

-cash-secured short puts

-protected puts

 

However level 2 is not allowed however, level 1 tradings for me is much riskier and potentially lose lots of money than level 2. Why do they structure like that? I am kinda frustrated

 

buy options

buy puts

[OptionTiger 10]

Apparently 401k accounts are not meant for "speculation." But i agree - these strategies could be more risky at times - you can't hedge them appropriately because you don't have all the available strategies.