Placing an Options Order

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

The following figure shows the Trading window open to the Options tab.

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.

To Buy or Sell an Option:

Access Options trading by clicking the Options tab in the Trading window.
Check either Calls, Puts or both and select an expiration month.
Click on the option of choice in the Options Window.

Click one of the following options (NOTE: These buttons are only actionable if you have been approved to trade options):

Sell to Close	Click to sell any long option positions that are currently in your account.
Buy to Open	Click to buy new long option positions for your account.
Sell to Open	Click to create new short option position in your account.
Buy to Close	Click to buy back any short option positions that are currently in your account.

The Options Execution window will open as in the following image:
Select the appropriate options (described below) and click OK to send the order.

Options Execution Settings
Order Type	Limit: Order is sent 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. 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.
Quantity	Click on the up and down arrows to change the number of contracts.
Limit Price	The bid/ask price of the selected option is automatically entered here, though it may be adjusted in .01 increments by clicking on the arrow buttons next to the field.
Stop Price	The price a symbol must trade through for a stop or stop limit order to be activated.
Time in Force	DAY: Day Order; Will cancel at the end of the day FOK: Fill or Kill; Requests an immediate fill for the entire number of contracts similar to an All Or None. If the entire number of contracts is not available, the order will be immediately cancelled. IOC: Immediate or Cancel; Requests an immediate fill for any number of contracts that may be available with the possibility of a partial fill. Any remaining contracts that are unfilled will be cancelled. GTC: Good ‘Til Cancel; Order will remain live until it fills, is rejected, or is canceled.
Trailing Amt	When placing an order using the Trailing Stop order type, specify the trailing amount, either as a percentage or points value.
Gain/Loss Calculations	Helps you assess the potential implications of a particular option order, including the Max Gain, Max Loss, and Break Even. Adjusts as you change the parameters of your order.
Special Conditions	AON: All or None; All contracts must be filled or the order will be canceled. Min Qty: You may specify a minimum quantity for the order to fill if your order quantity is 2 or greater.
Brackets	For more information on adding this powerful risk management tool to your order, visit the About Brackets topic.