I'll preface this by saying that my experience in this field is limited, so bear with any abuses of terminology.
I understand the rationale behind FINRA's "Know your customer" and suitability rules for certain account privileges (e.g., trading options).
It seems as though the initial tier is only allowed to sell covered calls (which by my understanding require you to have multiples of 100 of the underlying ready to distribute to the buyer if necessary), but it would seem as though long puts and calls would be more "within reach" of those that are starting out (i.e., don't have $25,000+ to put down, and are likely only at risk of being OTM).
It's unclear to me why the system is set up this way. I know that these first two tiers are available with a cash account, so it wouldn't seem to be a margin requirement that dictates this "pecking order". Is this simply a set of stages through which people are traditionally initiated into these types of transactions, or is there a deeper rationale based on suitability?