The steps for placing a multi-leg option order vary depending on the strategy you are using, but following are the general steps with links to more details. When one or more of the strategies requires further explanation on a particular step, it is called out beneath the step. Some steps are different between the All in One tool vs. the Trade tool and Symbol Hub and are called out below.
Enter the underlying symbol in the Title Bar and press Enter on the keyboard or click Go.
Note that within the Account Details Position tab, multiple Option symbols in the same underlying can be loaded into the All in One Trade tool at the same time. To do so, double click on the parent row from Positions Strategy or hold down the 'Ctrl' key and select multiple rows from within any Position view, then click the 'Close Position' button.
Buy-Write/Sell-Write: When opening a Buy/Write, select the price from the Ask (Buy Stock/Sell Call) side, and when closing (Unwind), select from the Bid (Sell Stock/Buy Call) side. The opposite is true for a Sell-Write. Click in the Bid (Short Stock/Sell Put) column to open a Sell/Write and the Ask (Buy Stock/Buy Put) column to Unwind.
Rollout: Select the option position to sell in the Position to Close drop-down, and then click the contract you want to roll forward to.
Straddle: The net is the total of the two bid prices of the options being sold (bid) or the total of the two ask prices of the options being bought (ask).
Custom: You can either enter the legs of the order in the order entry fields at the top of the trade ticket, or you can right-click on a contract in the option chain and select the leg of the order ticket into which it should be loaded.
Buy-Write/Sell-Write: These strategies have a stock leg and an option leg, so when specifying quantity, stock will have a 100:1 ratio to contracts. Increasing the share quantity will increase contract quantity proportionately.
Ratio Spread: Quantities for the two legs of a ratio spread are required to be in a 2:1 ratio.
For Limit orders, click the Net Credit, Debit, or Midpoint price in the All in One Trade Tool to use that price. You can also manually enter a different price or use the arrows to select a new price.
For Walk Limit orders, select the Start Price, End Price, Price Increment and Time Increment price within the All in One Trade Tool.
You can also manually enter a different price or use the arrows to select a new price.
A 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).
Note that all Multi-leg option orders are sent as Limit or Walk Limit orders.
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
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.
Keyboard shortcuts