Placing Option Orders (Single Leg)

The steps for placing an option order vary depending on the option strategy you are using, but following are the general steps with links to more details.

1. Look up quote/symbol: Click the Find Chain link to find an option to trade – or simply enter the option symbol in the options symbol field.

2. If applicable, Choose an Order Type

   Available Order Types

   • Limit: Order is executed at the price you specify. Fill price is guaranteed but execution is not.

   • Walk Limit: Order operates by going to the market at the selected Start Price.

     Once entered, it will rest for the selected Time Increment and then cancel and replace the order with a new limit, determined by selected Price Increment amount. This process will continue until the order is filled or rests as a limit order at the End Price (never outside of initial NBBO).

     Walk Limit orders work on select option strategies and can be customized by specifying Start/End prices, Price Increments, and Time Increments.

   • Market: Order is sent at the best price available at the time the order is executed. Execution is guaranteed but fill price is not.
   • Stop: A market order that is only activated when there is a print or quote that is at or through the stop price. On sell-stop orders, the order is activated when the offer is at or below the stop price. On buy-stop orders, the order is activated when the bid is at or above the stop price. Once the order is activated, you are guaranteed execution, but there is no guarantee of the execution price being at or near your stop price.
   • Stop Limit: Similar to a stop order in that a stop price will activate the order. However, once activated, the stop limit order becomes a limit order and can only be executed at the limit price specified by you or at a better price. Thus, you are not guaranteed an execution with a stop limit order.
     

3. If applicable, Select the Timing for the order

   Available Timing Choices

   • Day: Causes your order to be canceled at the end of the current day's trading if the order has not been executed. All Market Orders are automatically Day orders. Orders are generally considered to be day orders unless otherwise specified.
   • GTC (Good 'Til Canceled): Instructs the broker to keep an order open until it is either executed or expires. At Schwab, GTC orders remain open for 60 calendar days unless filled or you request that it be canceled before that time.
   • FOK (Fill or Kill): Instructs the broker to immediately fill an order in its entirety or to cancel it. FOK instructions are only applicable to limit orders.
   • IOC (Immediate or Cancel): Requires the broker to immediately fill as much of the order as possible and then cancel any remaining portion. (It may not be available in all market conditions.) Unlike All or None (AON) or Fill or Kill (FOK) instructions, IOC orders may result in a partial execution.
4. If applicable, Add an Advanced Order: Click the Add an Advanced Order drop-down. See Advanced Orders Overview for more details.
5. Preview Order: When you are satisfied with the trade you are building, click Preview Order.
6. Place Order: At this point you may choose to place the order.

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." Supporting documentation for any claims or statistical information is available upon request.

NBBO (National Best Bid/Offer) Spread Quote reflects the best quotes printed from participating exchanges on each leg of the spread combined. For a long leg, the NBBO single leg “ask” quote is used, while short leg quotes use the NBBO “bid” quote to combine for a synthetic NBBO combination trade quote. Please note that there are no spread markets in securities that are subject to benchmarks such as “time and sales” or “NBBO” and therefore the “market” cannot be “held” to a price.