At Schwab, options traders get robust trading tools, extensive options education, plus expert insight and support.
Whether you're a beginning stock trader, or a seasoned veteran, our trading tools can help you navigate the options market with powerful analytics and reports to enable you to make the most informed decisions when trading options. At Schwab, options traders get robust trading tools, extensive options education, plus trading insight and support.
Trade options at Schwab for just $4.95 + $0.65 per contract.
Options tools and research. Get the tools you want to help you make smarter trading decisions, including options chains, hypothetical options calculators, an options strategy finder, and more.
Options education. Whether you are just starting out or are a seasoned trader, take advantage of a wide range of educational opportunities—including in-branch and live online workshops, prerecorded seminars, and special events—to help sharpen your strategies.
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Options support. From tool questions and strategy analysis to help with complex orders, our specialists can help you with your options trading needs.
Active traders: View the powerful options trading tools built in to Schwab’s StreetSmart Edge® trading platform, including options Greeks, options charting and more.
Help maximize your trading edge with options education and market insight.
Stay current on options strategies with live online and prerecorded seminars, get weekly , and articles on a variety of topics, no matter what your level of options trading experience is.
Please read the options disclosure document titled before considering any option transaction.
| Essential Education |
| Live Online |
Options Fundamentals for Traders
with Lee Bohl |
Take this seminar to help gain a basic understanding of options concepts and terminology such as calls, puts, exercise, assignment, premium, intrinsic value, time value, LEAPS® and more in this introductory option course. |
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Getting Started with Options
by Randy Frederick |
Read all about the basics of options. |
Read article |
| Additional is available from the OIC. |
| Intermediate Education |
| Prerecorded Seminars |
Selling Put Options
with Marty Kearney, CBOE |
A discussion of the mechanics of selling put options. |
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| Live Online |
Bullish Income Strategies for Options
with Lee Bohl |
This seminar discusses the use of option strategies to help generate income for investors. It will focus on Covered Call Writing, Cash Secured Equity Put selling and Spreads. Case Studies and examples will be used to demonstrate these strategies. |
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Option Hedging Strategies
with Lee Bohl |
Market volatility is always an important factor that investors and traders need to contend with when making their trading decisions. Investors can help reduce downside market exposure through the proper use of hedging strategies. This session explores ways to help reduce or limit the market risk of equities trading, through the use of covered calls, protective puts and collars. |
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Managing Risk Using Options: Equity Collars and Cash-Secured Equity Puts
by Randy Frederick |
Part three of a three-part series: How to use collars and cash-secured equity puts (CSEPs) to help limit the risks of equity positions.
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Read article |
Reducing Risk with Credit Spreads
by Randy Frederick |
Credit spreads allow you to substantially limit risk by forgoing a limited amount of profit potential. |
Read article |
Bullish Spreads:
Finding Good Candidates
by Randy Frederick |
Find out how to select an expiration date and strike prices for these two-legged option strategies. |
Read article |
| Additional is available from the OIC. |
| Advanced Education |
| Prerecorded Seminars |
Looking to Repair A Bad Stock Trade?
Try Using Options
with Randy Frederick |
Listen to this webcast and hear about the Option Repair Strategy which is a technique intended to help you get back to breakeven sooner. |
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| Live Online |
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Advanced Options Strategies
with Lee Bohl |
In this seminar, we’ll discuss more advanced options trading strategies, including their risks and potential rewards, as well as how and when to apply them. We’ll also discuss how to take a breakout or neutral position using straddles and strangles; how to establish synthetic equivalents; and a strategy for helping repair a stock position using options. |
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Bearish Spreads:
Finding Good Candidates
by Randy Frederick |
How to structure a bearish spread to help match your level of bearishness. |
Read article |
| Additional is available from the OIC. |
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Support from Options Specialists Get access to our special options support team for help with risk analysis, implementing trade strategies, placing complex orders and more. Please read the . Watch Video |
Experience you can count on
- Rely on a dedicated team for your options trading needs.
- Benefit from an analysis of your options strategies.
- Get specialized support on advanced options tools.
- Ask for expert assistance with complex options orders.
Complimentary options orientation session
- Meet with an options specialist one-on-one to talk about your options trading needs.
- One-hour session covers topics like tools and services, trade mechanics, and more.
- Available only to Schwab clients who have been approved to trade options.
Call options give the holder (buyer) the right to buy a specified number of shares (usually 100) of stock at the strike price, until the contract expires.
Put options give the holder the right to sell a specified number of shares of stock at the strike price, until the contract expires.
When you are an option buyer (owner), you have the choice of three possible outcomes:
- Exercise your option (choose to buy or sell the underlying instrument).
- Sell the option to close out your position.
- Allow the option to expire worthless.
When you are an option seller (writer), you've created an obligation for yourself that may have one of three possible outcomes: buy the option back to close out your position, allow the option to expire worthless, or take assignment (be required to buy or sell the underlying instrument).
You can apply for a Schwab brokerage account here.
Option descriptions contain a lot more information than stock symbols. For example, in Long 1 XYZ Dec, 18 2015 55.00 C @ 3.85:
- XYZ represents the underlying security symbol.
- Dec 18, 2015 represents the expiration date.
- 55.00 represents the strike price.
- 3.85 represents the premium.
Expiration: The expiration date for all listed equity options in the United States is the last trading day in the life of the contract, usually a Friday. However, the expiration day may be a Thursday when the normal Friday expiration is a market-observed holiday. Other exceptions may include quarterly options, which expire on the last business day of the quarter, or end of month options, which expire on the last trading day of the month.
Strike Price: The price at which the underlying security will be delivered in the event that the option is exercised or assigned.
Premium: The price at which an option may be bought or sold.
With stocks, you are limited to buying, selling and selling short. Options allow more possibilities, including strategies:
- For bullish or bearish outlooks.
- To profit if a stock stays within or moves outside of a certain price range.
- That seek to profit if a security increases or decreases in volatility.
- To hedge against adverse price moves in existing positions.
- To generate income if a stock stays above or below a certain price.
While options do provide a lot of flexibility, it is important to realize that with any option strategy used on dividend-paying stocks, you will not be entitled to any dividends unless you purchase the actual stock before the ex-dividend date. With option strategies, you also will not be entitled to voting rights or any other benefits of stock ownership unless you own the actual stock. Finally, since all options eventually expire, they will generally lose value as their expiration date approaches, and may end up being completely worthless, whereas the holder of a stock position can hold the stock for a long duration without selling it.
Watch this video from Randy Frederick, Schwab's Managing Director of Trading and Derivatives, for more information on the benefits and opportunities provided by options trading.
Take the next step.
Get started with options trading today.
Open an Account or call 800-435-4000.
1. Up to 999,999 shares can be placed per trade. Online trades are trades placed through Schwab.com, www.schwab.co.uk, StreetSmart Pro®, StreetSmart.com®, Schwab Mobile, or Schwab software.
Multiple-leg options strategies will involve multiple commissions. Spread trading must be done in a margin account. Covered calls provide downside protection only to the extent of the premium received and limit upside potential to the strike price plus premium received. Writing uncovered options involves potentially unlimited risk. Options carry a high level of risk and are not suitable for all investors. Certain requirements must be met to trade options through Schwab. Please read the options disclosure document titled before considering any option transaction.
Please see the for detailed information. Commissions for equity or option trades resulting from an option exercise or assignment will be subject to the corresponding online commission pricing schedule.
Charles Schwab & Co., Inc. (Member ) ("Schwab") and optionsXpress, Inc. (Member ) ("optionsXpress") are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation.
