How Do I Buy Options on Vanguard?

One of the investment services that Vanguard offers its clients is options trading. If you want to buy options on Vanguard, you need to apply. This is because Vanguard does not let just anyone trade options. You will need to show that your trading experience matches the options trading level you are applying for and your investment objectives. Vanguard will notify you about its decision by mail.

Vanguard offers its customers a lot of different investment opportunities, including buying options. Because investing in options requires a lot of experience and know-how, investing in options is not something for everybody. However, it can potentially be a way of making a lot of money. If you are interested in using Vanguard to invest in options then keep reading. This article will teach you what you need to know.

What Are Options?

On the surface, options seem pretty simple. An option is the right to make a certain investment, if you choose, at some point in the future. If you don't want to exercise that right when the time arrives, you can just let it expire. It all seems easy to understand and safe to do because you don't have to exercise your options if you don't want to.

A Warning about Options Investing

However, appearances can be deceiving. Options are very complex investments, and a high level of risk goes along with investing in them. Before you buy options, make sure you know what you are doing. Or at least make sure you can afford to lose the money you invest.

How To Buy Options on Vanguard

The complexity and risk involved in trading options is the reason why you can't simply just go ahead and buy options on Vanguard. Instead, you need to apply to trade options, and Vanguard will decide whether or not to allow you the opportunity. You also need to have a Vanguard brokerage account.

To submit an options trading application, follow these steps:

  1. Log into your Vanguard account.
  2. Go to your account page.
  3. Click on Complete Options Application.
  4. Read the terms and conditions.
  5. Check the box indicating that you accept the terms and conditions.
  6. Answer the questions about the trading level you want to apply for and your investment objectives.
  7. Answer the questions about your trading experience.
  8. Review your application and make sure that all of the information is accurate and up to date.
  9. Submit the application.

Vanguard will let you know about its decision by mail. It may take several days to receive the decision regarding your application.

Contacting Vanguard

If you have any questions about options trading, or if you need to ask about the status of your options trading application, then you can get in touch with a Vanguard customer service agent for help. You can contact a Vanguard agent on the Vanguard help forum or by phone.

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Christian has been writing about long hold times and customer service call center experiences since 2010. He's been featured in Bloomberg, the Wall Street Journal and the Boston Globe.

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