SIE practice questionmediumOptions Account – Trading Levels
Which statement is true about options account trading levels?
- ALevels are determined by customer net worth only
- BAll customers start at the highest level
- CHigher levels permit more complex strategies like spreads and uncovered writing✓ Correct answer
- DLevels apply only to cash accounts
Explanation
Why C — Higher levels permit more complex strategies like spreads and uncovered writing
Higher options approval levels allow riskier or more complex strategies; not all customers start at the highest level. Levels depend on suitability, not just net worth, and apply to options accounts.
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