Options

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

Trading

Weekly Trader's Outlook

Stocks are on track for modest weekly gains, despite a volatile post-FOMC reaction in the bond market. Strong cloud services growth from hyperscalers Amazon and Microsoft has helped offset rising Treasury yields.

Options

Covered Call Strategy Considerations

Selling covered calls is a strategy that can help traders potentially make money if the underlying stock price holds steady. Here are some considerations and specifics to remember.

Options

Large Bid/Ask Options Spreads in Volatile Markets

Bid/ask options spreads widen during volatile markets as market makers adapt how they manage trades amid increased uncertainty.

Options

Weekly Options: Uses, Risks, and Trade-offs

Learn how weekly stock options can potentially help option traders adjust their exposure during market events like earnings releases or economic announcements.

Trading Tools

3 Stock Options Trading Stats on thinkorswim

Learn how three options statistics on thinkorswim—implied and historical volatility, the Sizzle Index, and the put/call ratio—can help traders make more informed decisions.

Options

What Are 0DTE Options? Learn the Basics

0DTE options have grown in popularity. Learn how they work, why higher trading volume may lead to tighter spreads, and why volatility risk matters.

Trading

Trading the VIX: Strategies for the Fear Index

Some traders use products tied to the VIX to hedge their portfolios against market declines or speculate on shifts in volatility. But trading the VIX carries significant risk.

Options

Intro to Put Ratio Options Spreads

Discover how traders may use put ratio options spreads to pursue specific financial objectives, as well as the strategy's advantages and risks.

Options

Box Spreads: What They Are and How to Use Them

A box spread options strategy can be a useful cash management tool when executed correctly, potentially helping traders lend or borrow money synthetically via the options market.

Trading Tools

Using Options Volatility Data to Research Moves

These options sentiment indicators—available on the thinkorswim platform—enable a trader to see the market's expectations for a security's potential move

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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