Options

Learn about options trading, from how to place your first options trade to more advanced topics.

futures margin margin order types forex options futures trading research technical analysis trading tools
Trading

Weekly Trader's Outlook

Stocks remained resilient this week as markets continue to lean optimistically toward potential trade deals between the U.S. and the rest of the world.

Options

Three Things to Know About the Wheel Strategy

The options wheel strategy involves buying cash-secured puts, and if they're assigned, writing covered calls on the stock, which might be repeatable. Here are three things to know.

Order Types

How to Use Walk Limit Orders for Options Trading

Schwab's proprietary Walk Limit orders for options automate the process of placing limit orders, increasing or decreasing the price for traders along the bid/ask spread.

Trading Tools

Analyze Vertical Spreads with the Risk Profile Tool

Learn how to set up and analyze an options spread using the Risk Profile tool on the thinkorswim platform for more complex trades like vertical spreads.

Options

Managing Cash-Secured Puts for Income Strategies

Cash-secured puts may generate short-term income or enable purchase of desired stocks at a favorable price. Know what to do if the cash-secured put doesn't work out as planned.

Portfolio Management

How to Hedge Against an Event-Driven Correction

How to use S&P 500 put options for temporary downside portfolio protection when concerns over an event-driven sell-off are elevated.

The information provided here is for general informational purposes only and is not intended to be a substitute for specific individualized tax, legal or investment planning advice. Where specific advice is necessary or appropriate, consult with a qualified tax advisor, CPA, financial planner or investment manager.

Investing involves risk, including loss of principal. Hedging and protective strategies generally involve additional costs and do not assure a profit or guarantee against loss.

Options carry a high level of risk and are not suitable for all investors. Certain requirements must be met to trade options through Schwab. Please read the options disclosure document titled "Characteristics and Risks of Standardized Options" before considering any option transaction. Supporting documentation for any claims or statistical information is available upon request.

With long options, investors may lose 100% of funds invested.

Covered calls provide downside protection only to the extent of premiums received, and prevent any profitability above the strike price of the call.

Cryptocurrency- related products carry a substantial level of risk and are not suitable for all investors. Investments in cryptocurrencies are relatively new, highly speculative, and may be subject to extreme price volatility, illiquidity, and increased risk of loss, including your entire investment in the fund. Spot markets on which cryptocurrencies trade are relatively new and largely unregulated, and therefore, may be more exposed to fraud and security breaches than established, regulated exchanges for other financial assets or instruments. Some cryptocurrency-related products use futures contracts to attempt to duplicate the performance of an investment in cryptocurrency, which may result in unpredictable pricing, higher transaction costs, and performance that fails to track the price of the reference cryptocurrency as intended. Please read more about risks of trading cryptocurrency futures here.

Futures, futures options and Forex trading involves substantial risk and is not suitable for all investors. Please read the Risk Disclosure Statement for Futures and Options prior to trading futures products.

Forex trading involves leverage, carries a substantial level of risk, and is not suitable for all investors. Please read the Risk Disclosure for Forex.

0924-RGR0