Options

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

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Weekly Trader's Outlook

All of the majors, sans the Russell 2000, hit fresh record highs this week which was largely supported by strength in mega-cap tech. While a 25-basis-point cut from the Fed also didn't hurt, the future trajectory of rate policy remains cloudy.

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Options

Unbalanced Butterfly and Strong Directional Bias

A guide to using unbalanced butterflies for traders who have a strong directional bias but want to generate income and ensure they have defined risk.

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Options

A Guide to the Covered Strangle Options Strategy

Learn how covered strangles can potentially help traders earn extra income from options and manage their stock positions during periods of sideways trading.

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ETFs

An Investor's Guide to Options Income ETFs

Options income ETFs offer investors a unique combination of high yields, downside cushion, and reduced volatility, but they come with risks worth considering.

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Options

Using Implied Volatility Percentiles

Learn how implied volatility (IV) percentiles can help identify when to use various options strategies. Rank volatility using IV percentiles to see if changes are normal or unusual.

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Options

Short Straddles vs. Strangles Options Strategies

Short straddles and strangles can help traders take advantage of range-bound trading or drops in implied volatility. But advanced options strategies carry greater potential risk.

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Options

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.

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Options

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.

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Portfolio Management

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.

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Options

How to Hedge in a Volatile Market

Options hedging strategies allow investors to insure against market risk, although this protection comes at a cost. Find out how to hedge with options.

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.

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