Options

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

Options Trading: Covered Call Strategy Basics

Understanding how this options strategy works could help traders potentially earn income from stocks they own, but it's not without risks. Take the time to learn what's involved.

Weekly Trader's Outlook

Fed Chair Powell laid the framework for a potential September rate cut during his Jackson Hole speech, and markets responded with an end of week rally that pushed them mostly in the green.

Money Due: Handling Credit Spread Assignment

Early assignment is a risk of trading credit spreads. What happens when a trader's notified money is due? Learn how to take an economical approach to managing an early assignment.

Practice Options Trading on the thinkorswim Platform

Stock traders may consider options as way to generate income or speculate on the market, but it takes practice to master the complexities. Learn how to get started risk-free.

Using S&P 500 Put Options to Hedge a Downturn

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

Comparing Index Options and Equity Options

Index options are typically used to hedge and speculate on broad swaths of the market, while single equity options track much narrower underlying assets. Both can have a place in a trader's toolkit.

Understanding the Gamma Squeeze

A gamma squeeze occurs through a combination of retail call buying, a rally in the stock, and market makers buying stock to hedge exposure, forcing the stock price up.

Options Strategy Spotlight: Long Call vs. Bull Call Spread

With so many bullish options strategies to choose from, how do you know which is right for your next trade? We'll compare two bullish options strategies in order to assist you with the decision-making process.

Three Things to Know About the Wheel Strategy

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

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.