Placing Option Trades (Calls & Puts)

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

1. In the Trade tool or Symbol Hub, click the Options tab.
2. Enter the underlying symbol in the Title Bar and press Enter on the keyboard or click Go.
3. Select the type of option trade you wish to place from the Strategy Selector. For more on the types of strategies you can trade from the Options tab, see Option Strategies Overview.
4. The Option Chain display at the bottom of the Options tab will display all the call and puts grouped by expiration. If you have chosen a multi-leg strategy, all the eligible pairings based on the strategy you have selected will display.
5. You can further filter the types of contracts or pairings displayed using the Option Chain Filters.
6. Once you have found the contract or pairing you want to trade, click on it to load it in the Trade Ticket.
7. If applicable, in the Action field, choose whether you wish to create a Buy to Open, Buy to Close, Sell to Open, or Sell to Close order.
8. Adjust the quantity using the arrow buttons or entering the quantity manually.
   
   

Keyboard shortcuts

• Up/Down keys increase or decrease by 5 contracts
• Left/Right keys decrease or increase in increments of 1
• Shift + Up/Down keys to increase or decrease by 10
• Shift + Left/Right keys to increase or decrease by 1
  
  

TIP: If you want to base your order quantity on a dollar amount rather than a number of contracts, click the $ button above the Quantity field. Enter the dollar amount and click OK to show the number of contracts that amount will buy.

9. 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.
• 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.
• Trailing Stop: A stop order request set at a price level that is above (for short positions) or below (for long positions) the current price that adjusts as the price fluctuates. For a long position, a trailing stop would be set below the current price and rise as the price advances. Should the price decline the amount of the trailing stop, then a stop order would be triggered and the position closed. As long as the price doesn't retrace the amount of the trailing stop, the position is held.
  

10. If you chose an order type requiring a limit and/or stop price, set those values in the specified fields.

Keyboard shortcuts

• Up/Down keys increase or decrease by .05
• Left/Right keys to increase or decrease by .01
• Shift + Up/Down keys to increase or decrease by .005
• Shift + Left/Right keys to increase or decrease by .001
  
  

11. 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.

12. Choose these from the Special Conditions:

• Min Quantity: Specifies the minimum execution quantity the client will accept (with any amount up to the specified Quantity thereafter).
• AON (All or None): Attempts to fill the entire amount of an order or none of it during the time limit specified. AON orders do not require immediate execution.

13. Similarly, to enable Brackets for your order, click the Brackets drop-down. See Brackets Overview for more information on the Brackets feature.
14. Click Review Order (if you have not turned off order verification).
15. If the order settings are correct, click Place Order. To edit the order, click Edit Order. To start over completely, click Do Not Place.

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