Options carry a high level of risk and are not suitable for all investors. Certain requirements must be met to trade options. Please read the Options Disclosure Document titled Characteristics and Risks of Standardized Options before considering option transaction.
With long options, investors may lose 100% of funds invested. Multiple leg options strategies will involve multiple commissions. Spread trading must be done in a margin account. Covered calls provide downside protection only to the extent of the premium received and limit upside potential to the strike price plus premium received. Writing uncovered options involves potentially unlimited risk.
Investing involves risks, including loss of principal. Hedging and protective strategies generally involve additional costs and do not assure a profit or guarantee against loss.
Commissions, taxes and transaction costs are not included in this discussion, but can affect final outcome and should be considered. Please contact a tax advisor for the tax implications involved in these strategies.
1. The standard online $0 commission does not apply to large block transactions requiring special handling, restricted stock transactions, trades placed directly on a foreign exchange, transaction-fee mutual funds, futures, or fixed income investments. Options trades will be subject to the standard $.65 per-contract fee. Service charges apply for trades placed through a broker ($25) or by automated phone ($5). Exchange process, ADR, foreign transaction fees for trades placed on the US OTC market, and Stock Borrow fees still apply. See the Charles Schwab Pricing Guide for Individual Investors for full fee and commission schedules.
Schwab Trading Services™ includes access to StreetSmart® trading platforms, the Schwab Trading Community, and Schwab trading specialists (a Schwab brokerage account is required). There are no fees to use Schwab Trading Services. Other account fees, optional data fees, fund expenses, and brokerage commissions may apply. Schwab reserves the right to restrict or modify access at any time. Schwab brokerage account online applications that have the Schwab Trading Services box checked will automatically be enrolled. For questions, call 888-245-6864 to speak to a Schwab Trading Services representative.
The Schwab Equity Ratings and stock lists or models are not personal recommendations for any particular investor; do not take into account the financial, investment or other objectives; and may not be suitable for any particular investor. Before buying, investors should consider whether the investment is suitable for themselves and their portfolio. Additionally, investors should consider any recent market or company news. Stocks can be volatile and entail risk, and individual stocks may not be suitable for an investor.
All-In-One Trade Ticket is a registered trademark of optionsXpress Holdings, Inc. used with authorization.
Idea Hub offers self-directed investors the ability to explore new trading ideas for options that are determined based on pre-set screening criteria. Please note that Idea Hub does not consider open orders, existing positions, or other factors, and is solely intended for educational and informational purposes. The examples within the Idea Hub are not intended as recommendations to buy, sell or hold any particular security nor implement any particular strategy. Users of the Idea Hub should not make investment decisions based solely upon the ideas generated by this tool. You are solely responsible for your investment decisions, and should carefully evaluate the examples to help determine whether or not they are right for you based on your own personal situation. The use of this tool does not constitute an investment recommendation by Schwab, and should also not be considered financial, legal or tax advice. Where specific advice is necessary or appropriate, Schwab recommends consultation with a qualified tax advisor, CPA, financial planner, or investment manager.
The projections or other information generated by Idea Hub regarding the likelihood of various investment outcomes at expiration are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results. The above calculations do not take into consideration all costs, such as commissions, taxes and margin interest which may impact the results shown and users of Idea Hub should not make investment decisions based solely upon values generated by it. Please contact a tax advisor for the tax implications involved in these strategies.
The Trade & Probability Calculator provides calculations that are hypothetical in nature and do not reflect actual investment results, or guarantee future results. The calculations do not consider commissions or other costs, and do not consider other positions in your account(s) for which this specific trade is taking place. Rather, these values are based solely on the individual contract or pair of contracts in this specific trade. In addition, the calculations do not consider the specific date of dividend, early assignment, and other risks associated with option trading. Options which expire before the estimated dates have calculated values based on underlying prices as of the estimated dates, as if option is expiring on the estimated date. Investment decisions should not be made based solely upon values generated by the Trade & Probability Calculator.
In addition, the calculations incorporate annualized dividend yields and do not consider ex-dividend dates, early assignment, and other risks associated with option trading. If an option expires before the estimated date, it is treated as though it expires on the estimated date. Investment decisions should not be made based solely upon values generated by the Trade Calculator.
Securities and market data are shown throughout this presentation for illustrative purposes only, and do not constitute a recommendation, offer to sell, or solicitation of offers to buy any securities.
Third-party news providers are not affiliated with Schwab. The information is presented as a service to Schwab clients, and Schwab makes no judgment or warranty with respect to accuracy, timeliness, completeness, or suitability of information. It is presented for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. Past performance is no guarantee of future results.
CNBC TV material is prepared by an independent third party that is not affiliated with Schwab. Schwab does not edit or endorse any of this material and is not responsible for its content.
Requires a wireless signal or mobile connection. System availability and response times are subject to market conditions and your mobile connection limitations. Functionality may vary by operating system and/or device.
There is no guarantee that execution of a stop order will be at or near the stop price.
Recognia, Inc. is not affiliated with Charles Schwab. Schwab does not endorse any of the content or features made available to you in Recognia’s “Technical Insight” and “Strategy Builder” tools.
Market Edge and Second Opinion are registered trademark(s) of Computrade Systems, Inc., which is not affiliated with Charles Schwab & Co., Inc.
S&P Capital IQ is a registered trademark of Standard & Poor’s Financial services LLC, which is not affiliated with Schwab.
Schwab does not recommend the use of technical analysis as a sole means of investment research.
Access to electronic services may be limited or unavailable during periods of peak demand, market volatility, systems upgrade or maintenance, or for other reasons.
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