Option Chains

Option Chains consist of all options available for an underlying stock.

1. Enter the underlying stock symbol in the Symbol field. NOTE: 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.
2. Click Get chain.
3. The chain data will display. Check the Calls and/or Puts boxes to display one or both of them. Check Stack to display option chains vertically instead of horizontally. When stacked, calls will display above puts.
4. Enable or disable Include Wkly/Qtrly to determine whether to display or hide options with non-standard expirations, like Quarterlys and Weeklys. You can also filter out Adjusted Options by disabling the Include Adjusted checkbox. More on Non-Standard Expiring Options and Adjusted Options...
5. Click on a row to view action items for that contract, such as placing a trade or viewing a chart. You can get details on the individual contract by clicking Option Details under More... or from the right-click menu.
6. In-the-Money and Out-of-the-Money contracts feature a shaded background for easier identification.

Static vs. Streaming Data View

You may choose to view option chains in Static or Streaming mode. In Static mode, you will need to click Refresh Data to see any market changes to quotes. In Streaming mode, quote changes automatically display as they occur in the marketplace.

Hypothetical Options Calculator

Hypothetical Option Pricing, available by changing the Basic drop-down to Theoretical, allows you to manually adjust variables, using the Black-Scholes pricing model, involved in option pricing to see how changes affect the option values. This is one way to test your assumptions to see what the price of the option would be if your assumptions hold true.

Change the following values to see how they affect option values: Price Change (change from current price), Days Past (days from today's date), Implied Volatility Change, % Open Interest, and Dividend Yield.

Below are a couple of examples on how this function can be used:

EXAMPLE 1

You are bullish on a stock, but decide to purchase calls instead of the stock, so you can get more leverage. You anticipate the stock will go up about 2 points in the next week. You use the hypothetical model to add 2 points to the underlying price, and take away 7 days from the days to expiration. This gives you an indication that the call option you are considering might gain about 1.54, if the stock goes up 2 points over the next 7 days.

EXAMPLE 2

You can also see how the greeks change as the variable change. For example, since a Delta will increase as an option gets farther in the money, in the example above, you would see the Delta change from its current level of about .68 up to .90. This tells you that while it only earned .77 for every dollar so far, additional moves to the upside will yield about .90 for every dollar if it continues to go up.

Historical Option Price Charts

Historical option price charts provide a quick way to understand the historical price performance of an individual option contract. These charts can be launched from the Chart link below any option symbol displayed in the Option Chains, Watch List, Order Status, Positions, or Options (Basic) trading page.

Each chart displays the option price (depicted as a bold line) along with the underlying price (depicted as a histogram) for the time period selected. The charts are available in a 1 week, 1 month, 3 month and 9 month time frame.

In addition to the chart, the daily closing values for the option (based on the closing midpoint of the bid/ask) and underlying security are displayed in a table to the right of the chart. These features will allow you to compare the price performance of the option vs. the underlying, while recognizing the impact of time decay.

Options carry a high level of risk and are not suitable for all investors. Certain requirements must be met to trade options through Schwab. Multiple leg options strategies will involve multiple commissions. Please read the options disclosure document titled "Characteristics and Risks of Standardized Options." Member SIPC