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Options trading for less

Experienced investors can trade options for just $6.95 (plus $0.75 per contract).

A bit about options.

Options can be used for hedging against risk, generating income and making the most out of market moves. They also offer the flexibility of additional trading strategies beyond just buying and selling stocks. Investors can write covered calls and trade calls and puts for only $6.95 (plus $0.75 per contract). Check out our pricing and rates to see how we stack up.

If you want to trade options, your account must be approved for options trading. Just remember, even though they have potential advantages, options involve risk and aren't for every investor.

You can read an introduction to options in our Knowledge Center, and for more in-depth information, visit The Options Industry Council (OIC).


Trade calls and puts.

Calls and puts give you the right to buy or sell a stock at a certain price, before a certain date. The contract's price is driven by the movement of the underlying stock, volatility and time remaining until expiration.

Write covered calls.

You can also write call options on stock positions you already own to generate income and reduce downside risks.

Important

Keep in mind that while the gains from trading calls and puts can be dramatic, the losses can also be equally significant. Also, when writing covered calls, you could be forced to sell your stock at a price lower than the current market price and lose future potential gains.

Options involve risk and are not suitable for all investors. Before investing in options, please read the Characteristics and Risks of Standardized Options.