I am approved for level 3 options trading. I currently have a multi-leg debit spread (a bull call spread) in my paper trading account which I am unable to close. When I attempt to do this in the UI, there is no error displayed, however in the network requests, I see that the attempted request to https://app.alpaca.markets/internal/paper_accounts/{accountID}/positions/{positionID}?cancel_orders=true failed. The server throws a 403 error with the following message:
code: 40310000
message: "account not eligible to trade uncovered option contracts"
I assume Alpaca is trying to close only part of the leg of the multi-leg order. Individually, the calls could be considered naked, however if treated as a multi-leg order, I should be allowed to close the position. If not, why am I allowed to open a multi-leg debit spread (which includes an uncovered call as one of the legs)? What gives?? If this is not possible, please let me know, so I can find a new broker. Fortunately I tested on a paper account, prior to attempting to trade.
Update: I am able to close the positions individually, sequentially, so I don’t understand why I can’t liquidate the multi-leg order.