Do I have to open an options account?

Yes, but it’s not difficult. If you already have a brokerage account, you might need to request authorization to trade options. However, the process is very simple and often takes less than five minutes to complete. Check with your brokerage firm to see if they will allow you to upgrade your account online.

If you are opening a new trading account, you need only to check a box to indicate that you want options trading authorization. Either way, you will need to complete a simple one- to two-page form that will inquire about your goals, trading strategies and trading experience. For Precision Profits, the only trading strategy you will be using is the purchase of calls and puts.

If you have any trouble getting approval for an options trading account, speak to your broker and inform them that you are aware of the risks involved with purchasing options.