Option Tab Settings

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

Options tab settings can be accessed through the Settings menu of the Trading window or by right-clicking on an option symbol. In both cases, you must have the Options tab open to access these settings.

Right-Click Menu Settings

• Option Data - Displays the option multiplier, exchanges on which the contract is trading, and other advanced data.
  
  

Stock symbols and price and volume data shown here and in the software are for illustrative purposes only. Charles Schwab & Co., Inc., its parent or affiliates, and/or its employees and/or directors may have positions in securities referenced herein, and may, as principal or agent, buy from or sell to clients.

• Hypothetical Pricing - Allows you to manually adjust variables involved in option pricing to see how changes affect the option values.
  EXAMPLE 1  You are bullish on a stock, but decide to purchase calls instead of the stock, so you can get more leverage.  You anticipate the stock will go up about 2 points in the next week.  You use the hypothetical model to add 2 points to the underlying price, and take away 7 days from the days to expiration.  This gives you an indication that the call option you are considering might gain about 1.54, if the stock goes up 2 points over a the next 7 days.
  EXAMPLE 2  You can also see how the greeks change as the variables change.  For example, since a Delta will increase as an option gets farther in the money, in the example above, you would see the Delta change from its current level of about .68 up to .90.  This tells you that while it only earned .77 for every dollar so far, additional moves to the upside will yield about .90 for every dollar if it continues to go up.
  
  
   

Settings Menu Options

• Option Page Columns - You can rearrange Options tab columns by either right-clicking on the column and selecting a different column or by adding columns. See the Options Tab Columns topic for directions.
• Option Greeks Settings - Greeks indicate how fast an option price is changing relative to parameters such as time, underlying stock price, volatility, etc.

• Pricing Method: Select from Black-Scholes, Barone-Adesi-Whaley, or Cox-Ross-Rubinstein.
• Interest Rate: Defaults to the 3-Month Treasury I-rate Index rate, but you can select User Defined Rate and change the interest rate to any you wish.
  
  
   
• Stack Options - When checked, Calls will be "stacked" above Puts in the Options tab. Scroll down to view Puts. Otherwise, Puts will be listed to the right of the Calls. Scroll to the right to view Puts.