Can Anyone Buy Stock Options?

Can Anyone Buy Stock Options?

A common question among new investors is: can anyone buy stock options? In short, many adults can trade exchange‑listed options after a brokerage approval process, but employee stock options (ESOs) are only granted to eligible company participants. This article explains who can buy or receive the different kinds of "stock options", how broker approval and plan rules affect access, what requirements apply, and the main risks, costs, and jurisdictional differences you should know before participating.

As of 2026-01-13, according to the Decrypt Morning Minute summary of market developments and a Bitwise survey highlighted by that reporting, institutional and financial‑advisor demand for crypto and derivatives is rising — a context that is relevant for crypto options platforms and regulated markets.

Overview of Stock Options

Stock options appears in two main contexts in U.S. markets:

• Exchange‑traded options (calls and puts): standardized derivative contracts listed on options exchanges that give the holder the right, but not the obligation, to buy (call) or sell (put) a specified amount of an underlying stock or ETF at a predetermined strike price before or at expiration.

• Employee stock options (ESOs): grants from an employer that give employees (or sometimes directors or consultants) the right to buy company shares at a set exercise price after satisfying vesting requirements.

The core difference in access is straightforward: exchange‑traded options are available to brokerage account holders who meet suitability and margin requirements, while ESOs are distributed by employers and are not publicly purchasable by outsiders.

This article uses the phrase "can anyone buy stock options" repeatedly to answer when, how, and under what conditions individuals can participate in both market‑listed options and employer grants.

Types of Stock Options

Exchange‑Traded Options

Exchange‑traded options are standardized contracts listed on regulated options exchanges. Key features:

• Underlyings: individual stocks, ETFs and sometimes indexes (index options typically settle in cash).
• Contract size: for most U.S. equity options, one contract controls 100 shares of the underlying (subject to special adjustments for splits or corporate actions).
• Strikes and expirations: exchanges list multiple strike prices and expirations (weekly, monthly, quarterly), allowing flexibility for different views and timeframes.
• Trading and settlement: options trade like securities in brokerage accounts and settle through clearinghouses that manage assignment and exercise.

These products are liquid for many large‑cap stocks and popular ETFs, while less liquid issuers may have wide bid‑ask spreads or no listed options at all.

Employee Stock Options (ESOs) and Other Equity Compensation

Employers use several equity instruments for compensation. Common types include:

• Incentive Stock Options (ISOs): tax‑preferred options for employees that, if certain rules are met, may receive favorable capital gains treatment but can trigger Alternative Minimum Tax (AMT) events on exercise.
• Non‑Qualified Stock Options (NSOs or NQSOs): more flexible but taxed as ordinary income on exercise for the spread between exercise price and fair market value.
• Restricted Stock Units (RSUs): promises to deliver stock or cash after vesting; not options but common equity compensation.
• Stock Appreciation Rights (SARs): cash or stock paid for appreciation, often without exercise price payment.
• Employee Stock Purchase Plans (ESPPs): allow employees to buy shares at a discount periodically.

ESOs differ from market‑traded options in that they are non‑transferable (usually), governed by the employer’s plan documents, subject to vesting and blackout windows, and often illiquid until a public liquidity event.

Who Can Buy Exchange‑Traded Stock Options?

Basic eligibility requirements

Answering "can anyone buy stock options" for listed products starts with basic requirements typically imposed by brokerages:

• Legal age: most U.S. brokerages require account holders to be the legal adult age in their state (often 18 or 21).
• Valid brokerage account: you must open and fund a brokerage account that supports options trading.
• Identity verification and KYC: brokerages perform identity checks and anti‑money‑laundering screening (KYC/AML).
• Residency and jurisdiction rules: some brokerages restrict residents of particular countries or states, or require additional documentation for non‑U.S. residents.

In practice, many adults who meet these basic checks can begin the process of trading listed options — but the full range of strategies depends on broker approval.

Broker‑approval process and option trading levels

When you apply to trade options, brokerages require an options application and suitability questionnaire. The application gathers details such as:

• Investment experience and years trading options.
• Understanding of options and risk tolerance.
• Annual income and net worth (liquid or total, depending on the broker).
• Investment objectives (income, speculation, hedging).

Based on this information, brokerages assign trading approval levels (often numbered) that determine the strategies you may use. Typical levels include:

• Level 1 (or basic): buy calls and puts (long positions) in a cash account — limited risk to premium paid.
• Level 2–3: spreads and covered calls — require more experience and may need margin or stock holdings.
• Higher levels: writing uncovered (naked) calls/puts and complex multi‑leg strategies — require high experience, higher net worth, and margin capacity.

Brokerages may also refuse approval or require additional verification before enabling more advanced option permissions.

Account types and margin requirements

Whether you use a cash account or margin account affects what you can do:

• Cash accounts: you can buy calls and puts if approved, but selling options or entering positions requiring margin is restricted.
• Margin accounts: enable shorting, selling covered calls, and certain spread/complex strategies. Margin provides leverage but also introduces margin maintenance and possible margin calls.

Writing naked options (selling without owning the underlying) is generally the riskiest and requires the highest approval and margin collateral because potential losses can be large.

Limitations due to the security or market

Not all stocks are "optionable." Exchanges and market makers determine which securities have listed options based on liquidity, market capitalization, and demand. Even for optionable securities, brokerages may restrict trading in certain symbol due to liquidity concerns, regulatory flags, or other risk controls.

Thus, when asking "can anyone buy stock options" you must also consider whether the particular underlying has listed options and whether your broker allows trading that ticker.

Who Can Receive and Exercise Employee Stock Options (ESOs)?

Eligibility and grant process

ESOs are granted under a company’s equity incentive plan. Eligible participants are typically employees, and sometimes non‑employee directors or consultants, as defined by plan documents. Key points:

• Grants: an employer issues option grants with specified exercise price, number of shares, and vesting schedule.
• Non‑transferability: most ESOs cannot be sold or transferred, meaning outsiders cannot simply buy an employee’s option grant.
• Plan rules: eligibility and grant size are governed by the company’s board and plan documents.

Because ESOs are compensation, you cannot "buy" an ESO on the open market — you must be granted one by the issuer.

Vesting, exercise rights, and post‑termination windows

Important ESO mechanics:

• Vesting schedule: options typically vest over time (e.g., 4 years with a 1‑year cliff). Until vested, options cannot be exercised.
• Exercise period: once vested, employees may exercise options per plan rules; options have expiration dates (commonly 10 years from grant for public companies) and post‑termination exercise windows if employment ends.
• Post‑termination exercise (PTE) window: many plans allow 90 days to exercise vested options after leaving the company, but this varies and can be longer or shorter; special agreements sometimes extend this window.
• Early exercise: some plans permit early exercise before vesting, subject to company acceptance and potential tax consequences.
• Transfer and repurchase: plans often include company repurchase rights or restrictions on transfer, and private company plans commonly include right‑of‑first‑refusal (ROFR) provisions.

Employees should read the grant and plan documents carefully to understand timelines and obligations.

Secondary markets and liquidity events

For private companies, ESOs are illiquid until a liquidity event such as an IPO or acquisition. Options for liquidity include:

• Company‑approved tender offers or secondary transactions (company managed or brokered) that allow employees to sell shares post‑exercise.
• Employee participation in secondary platforms that match buyers and sellers, subject to plan and securities law restrictions.
• Public listing (IPO) or acquisition that provides a tradable market.

Because ESOs are generally non‑transferable, non‑employees cannot obtain them unless the company explicitly allows transfers in special cases.

How to Get Approved and Buy Exchange‑Traded Options (Step‑by‑Step)

If your question is "can anyone buy stock options" for listed options and you want a practical roadmap, follow these steps:

1. Choose a brokerage: pick a regulated brokerage that supports options trading and provides educational resources.
2. Open and fund an account: complete identity verification and fund your account with the amount you plan to trade.
3. Complete the options application: answer the suitability questionnaire honestly, including experience and financials.
4. Receive an approval level: the broker will notify you of permitted strategies; start with basic approvals if you are new.
5. Educate and research: study option chains, implied volatility, Greeks, and strategy mechanics before placing live trades.
6. Paper‑trade or start small: simulate trades or use small position sizes to build experience.
7. Place orders: use limit orders or defined spread orders for cost control; select proper expirations and strikes.
8. Monitor and manage: track positions, set alerts for assignment risk, and follow margin requirements.

Remember that while many people can trade basic long calls or puts after approval, advanced option strategies require additional permission and experience.

Risks, Protections and Regulatory Requirements

Risks of options trading

Options can be powerful but also risky:

• Leverage and magnified losses: a small move in the underlying can create large percentage gains or losses for options buyers or sellers.
• Total premium loss: buyers of options can lose 100% of the premium paid if the option expires worthless.
• Assignment risk: option sellers (writers) can be assigned and obligated to buy/sell the underlying at undesirable times.
• Complex strategy risk: multi‑leg positions may have non‑linear payoffs and require careful management.
• Liquidity and spread risk: illiquid options may have wide bid‑ask spreads, making execution costly.

Broker and regulatory safeguards

Brokerages and regulators provide protections and disclosures:

• Options disclosure documents: brokers must make documents available such as the OCC’s Characteristics and Risks of Standardized Options (document describing core risks).
• Suitability checks: brokers assess whether options trading is appropriate for each client.
• Margin rules: regulatory and broker margin requirements set minimum equity and maintenance standards for leveraged positions.
• Position limits and exchange rules: exchanges and clearinghouses apply limits and rules to reduce systemic risk.

Special considerations for retail investors

Retail investors should emphasize education and risk controls:

• Learn the Greeks (delta, gamma, theta, vega) to understand price sensitivity.
• Limit position size relative to portfolio and avoid using margin recklessly.
• Consider stop loss rules, defined‑risk strategies, and paper trading before live trading.
• Seek independent education resources and consider consulting a licensed professional if unsure.

Costs, Fees and Tax Considerations

Options come with direct and indirect costs:

• Option premium: the price of the contract paid upfront by buyers.
• Commissions and per‑contract fees: brokerage costs per trade (vary by broker).
• Exchange/clearing fees: small fees passed through by brokers for exchange and clearing services.
• Margin interest: for margin accounts, interest on borrowed funds applies.

Tax treatment varies by instrument and transaction type:

• Exchange‑traded options: gains are generally capital gains if held in taxable accounts; short‑term vs long‑term classification depends on holding period and specific rules (e.g., 1256 contracts rule for some broad index options). Consult a tax professional for your situation.
• ISOs vs NSOs: ISOs may receive favorable long‑term capital gains treatment when holding requirements are met, but exercising ISOs can trigger AMT exposure. NSOs are treated as ordinary income on exercise for the spread.

Taxes are complex; this guide is informational only. Consult a tax advisor for personal tax consequences.

Restrictions for Non‑U.S. Residents and International Investors

Access to options depends on jurisdiction and brokerage policies:

• Some brokers restrict option trading for residents of particular countries.
• Non‑U.S. residents may need additional documentation (tax forms, proof of residence) and may face different margin rules.
• Certain option products may be unavailable outside the U.S. or to non‑U.S. persons due to regulatory or tax constraints.

Always confirm with your brokerage which products and approval levels are available given your residency and tax status.

Crypto and Alternative Markets (brief)

The word "options" also applies to cryptocurrency markets. Crypto options come in two main forms:

• Exchange‑listed crypto options: standardized options on cryptocurrencies traded on regulated or centralized crypto venues.
• OTC digital options: bespoke contracts arranged bilaterally or through institutional desks.

These platforms have their own KYC/AML requirements and regulatory frameworks. If you explore crypto options, prefer regulated venues and approved custodial solutions. For Web3 wallets or decentralized interactions, Bitget Wallet is recommended as a secure, integrative option for interacting with Bitget’s services and participating in crypto derivatives where available on Bitget’s platform.

Note: crypto options are not the same as U.S. equity options and may carry different margin, settlement, and legal risks.

Common Misconceptions

• "Anyone can instantly trade all option strategies." No — broker approval, margin, and suitability assessments limit which strategies an individual can use.
• "Employee options are freely tradable." No — ESOs are usually restricted, non‑transferable, and illiquid until a liquidity event or company‑approved sale.
• "Options are only for experts." While complex strategies require expertise, basic buying of calls or puts is accessible to many retail investors after approval — but it still carries risk and requires education.

Alternatives to Buying Options

If you question "can anyone buy stock options" because you want similar exposures with different risk profiles, consider these alternatives:

• Buy the underlying stock or ETF for direct ownership.
• Use covered calls to generate income while holding stock.
• Invest in option‑writing ETFs or covered call ETFs to get passive exposure to option premium income (understand tradeoffs and costs).
• Use futures or CFDs where permitted (these have their own risks and regulatory environments).
• Consider warrants or structured products offered by institutions; they may replicate some option exposures.

Each alternative has different liquidity, cost, and tax characteristics compared with standard listed options.

Practical Resources and Further Reading

Authoritative educational and regulatory sources include:

• FINRA investor pages on options and margin rules.
• Options Industry Council (OIC) and the Options Clearing Corporation (OCC) publications for option mechanics and risks.
• Brokerage learning centers and support articles (look for well‑documented broker resources and tutorials).
• Investopedia and professional textbooks on derivative securities for deeper study.

For crypto‑related options and wallets, consider Bitget educational resources and the Bitget Wallet for custody and trading integrations.

Frequently Asked Questions (FAQ)

Q: Do you need to be accredited to trade listed options?

A: Usually no. Most listed options are available to retail investors who pass a broker’s suitability and approval process; accredited investor status is not generally required for exchange‑traded options.

Q: Can minors buy options?

A: No. Most brokerages require account holders to be legal adults. Guardians can open custodial accounts for minors, but options trading in custodial accounts is often restricted.

Q: Can you lose more than your investment?

A: Yes. Buyers of options can lose the entire premium only, but sellers of uncovered options can face unlimited or very large losses and may lose more than deposited collateral.

Q: Are all stocks optionable?

A: No. Exchanges list options only for securities that meet liquidity and listing criteria. Many small or thinly traded stocks do not have listed options.

Q: Can outsiders buy employee stock options?

A: No. ESOs are grants from the company to eligible participants and are generally non‑transferable until company rules allow any sale of the underlying shares.

Reporting Context: Market Adoption and Institutional Flow (Timely Note)

As of 2026-01-13, reporting summarized in the Decrypt Morning Minute highlighted an increase in institutional and advisor adoption of crypto products. That reporting cited a Bitwise survey showing rising advisor allocations to crypto and increasing institutional access for client accounts. These developments illustrate growing institutional demand for crypto derivatives and related products, which influences the availability and product development for crypto options on regulated venues. This context is relevant for investors comparing traditional exchange‑traded equity options and emerging crypto option markets.

(Report date: As of 2026-01-13, per Decrypt Morning Minute and cited Bitwise survey.)

Summary — Can Anyone Buy Stock Options?

Exchange‑traded options are broadly accessible to adults who pass a brokerage’s suitability and approval processes and who meet margin and collateral requirements. However, access is not automatic: broker approvals, account type (cash vs margin), and the optionability of the underlying security determine which strategies are permitted. Employee stock options (ESOs) are not purchasable on the open market and are granted only to eligible company participants, subject to vesting, plan rules, and transfer restrictions. In short: many people can trade listed options after proper account setup and approval, but ESOs are company‑specific and not available for general purchase.

Want to explore options in crypto or learn more about derivatives? Check Bitget’s learning center and Bitget Wallet for custodial and trading tools tailored to derivatives and crypto options. Always prioritize education and consult a licensed professional for tax or legal guidance.