Options Overview

Trade options from the All in One tool, designed with option traders in mind to provide a dynamic, streamlined workflow and customization to your needs. You can also trade options from the Options tab of the Trade tool or Symbol Hub.

Option trading tabs in any of these tools display 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 available in any of the trading tools.

Basic Options

The default view is Calls & Puts, and the Option Chain reflects the underlying symbol loaded in the trading tool. For step-by-step instructions on placing single-leg option orders, see Placing Option Trades (Calls & Puts).

Multi-Leg Options

• In the All in One tool, you can add legs to equity or single-leg option orders to create strategies, and the strategy will adjust as you change the contents of the trade ticket. You can also select a strategy from the drop-down menu in the tab name, and the trade ticket and option chain will reflect the new strategy.

• The Trade tool or Symbol Hub, 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.
• For step-by-step instructions on placing multi-leg option orders, see Placing Option Trades (Multi-Leg).

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 more information on Option Trading, visit the Quick Reference Guide.

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

Pick your Strategy

• All in One tool: Click the drop-down arrow in the tab name to select a strategy. Trade tool/Symbol Hub: 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 Single-leg Option Trades or Placing Multi-leg Option Trades.

Option Margin Requirements

See the requirements for buying and borrowing against securities in a Margin account based on Reg T, FINRA, and Schwab rules on Schwab.com.

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. Spread trading must be done in a margin account. Please read the options disclosure document titled "Characteristics and Risks of Standardized Options." Member SIPC