Trade Advanced Options

Place Advanced (Multi-leg) Option trades from the Options -Advanced tab in the Trade tab.

• Choose Advanced for multi-leg option trades or Basic for single leg option trades.
• Based on the Strategy and other variables you select, this window will find appropriate options contract pairings, if available.
• An Advanced Option order consists of two legs which are sent to an option exchange where both legs have to fill at the specified net price. These order types help you avoid the risk of legging in (sending 2 separate orders at 2 specified prices).

STEP 1 - Set Up Strategy

Strategy Filter / Combo

• Click Strategy Filter when you want to find option pairings based on a particular strategy.
• Click Combo when you know the option symbols you wish to pair.

Underlying Symbol

Type the symbol for the underlying equity or index for the options you wish to trade. When you are finished, click Get Spreads and view the results for the specified strategy.

Combos:  For combos, enter the option symbol for each leg (Leg 1 will accept equity symbols too) and then click Get Spreads. When entering an option symbol, follow the format: XYZ MM/DD/YYYY 00.00 C where XYZ is the underlying symbol (root symbol), followed by the expiration date, strike price and C or P for Call or Put.

Stock and/or option symbols and price and volume data shown here are for illustrative purposes only. Charles Schwab & Co., its parent or affiliates, and/or its employees and/or directors may have positions in securities referenced herein, and may, as principal or agent, buy from or sell to clients.

Strategy

Select the Strategy for which you wish to find option pairings. Refer to the Advanced Options Overview for more information on each strategy.

StreetSmart.com® automatically shows you only the Strategies that are available for your Option Approval level.
 

Strategy Variables

These are the fields where you can customize the pairing results by specifying calls/puts, expiration month, strike range, etc. Each strategy has a unique set of variables which are explained in the step-by-step Placing an Advanced Options Order topic.

STEP 2 - Select from results to load order

Option Pairings

Shows all the pairings for that symbol based on the Strategy and Strategy Variables you have selected.

Click on any of the pairings to load the order into "Step 3 - Set up order" panel.

STEP 3 - Set up order

Order Settings

In this panel, you will set up your contract quantity, action, price, etc.

PREVIEW TRADE

Preview

The Preview panel shows information such as Max Gain, Max Loss, and Break Even values for most opening transactions, which will adjust as you change the details of your order.

• Click Verify Order to see a summary of your order and to send the order.
• Click Clear Order to go back to clear the current pairing from the order settings fields and return the Option Pairings panel to full size.