Options Overview

The Options tab displays real-time, streaming options data and, for clients approved for options trading, automatic electronic access to execute trades via all primary listed options exchanges.

Both single and multi-leg options are traded in the Options tab.

• Basic Options: The default view is Calls & Puts, and the Option Chain reflects the underlying symbol loaded in the Trade tool or Symbol Hub.
• Multi-Leg Options: You can place multi-leg orders in the Options tab by changing the Strategy Selector from Calls & Puts to one of the multi-leg strategies provided. Using the defined StreetSmart Edge™ Option strategies, orders can be entered more quickly and with potentially less market risk than by “legging in” to the strategy.

TIP: The types of option strategies available to you will depend on your options approval level, which is displayed in the upper right corner of the Options tab. To inquire about raising your options trading level, contact a Client Service Representative.

For a demonstration and more information on Option Trading, visit the Training page.

The basics of option trading in StreetSmart Edge are as follows (click the links to get more information on each area):

Pick your Strategy

• Use the Strategy Selector in the upper left corner of the Options tab to select the strategy, whether a straight Call or Put or a multi-leg strategy like a Straddle or Vertical Spread.
• The software will update the option chain to display contracts or contract pairings appropriate for the strategy AND will adjust the Trade Ticket to display the correct order entry fields.
• For a more technical look at each type of option strategy, see Option Strategies Overview.

Select Contract(s) in Option Chain

• The option contracts or contract pairings available for that strategy will display within the option chain area. They are grouped by expiration date and the near date defaults to open with the Mid price highlighted.
• For straight calls or puts, get details on an individual contract by clicking the arrow at the start of the row. This will display the contract specifications, Level I and Level 2 quote data for the contract.
• For multi-leg orders, see the contracts making up the legs of a multi-leg pairing by clicking on the arrow at the start of the row.
• See more about viewing and working with Option Chains.

Fill out Trade Ticket

• Provide the order routing instructions in the Trade Ticket, such as quantity, order type, limit price, and more.
• Learn more about Placing Option Trades.

Commissions, taxes, and transaction costs are not included in any of these strategy discussions, but can affect final outcome and should be considered. Please contact a tax advisor to discuss the tax implications of these strategies. Many of the strategies described herein require the use of a margin account. With long options, investors may lose 100% of funds invested. In-the-money long puts need to be closed out prior to expiration, since exercising them could create short stock positions.

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