How to trade options in the stock market

The NASDAQ Options Trading Guide. Equity options today are hailed as one of the most successful financial products to be introduced in modern times. Options have proven to be superior and prudent investment tools offering you, the investor, flexibility, diversification and control in protecting your portfolio or in generating additional investment income. We hope you'll find this to be a helpful guide for learning how to trade options. Understanding Options. Options are financial instruments that can be used effectively under almost every market condition and for almost every investment goal. Among a few of the many ways, options can help you: Protect your investments against a decline in market prices Increase your income on current or new investments Buy an equity at a lower price Benefit from an equity price’s rise or fall without owning the equity or selling it outright. Benefits of Trading Options: Orderly, Efficient and Liquid Markets. Standardized option contracts allow for orderly, efficient and liquid option markets. Options are an extremely versatile investment tool. Because of their unique riskreward structure, options can be used in many combinations with other option contracts andor other financial instruments to seek profits or protection. An equity option allows investors to fix the price for a specific period of time at which an investor can purchase or sell 100 shares of an equity for a premium (price), which is only a percentage of what one would pay to own the equity outright. This allows option investors to leverage their investment power while increasing their potential reward from an equity’s price movements. Limited Risk for Buyer. Unlike other investments where the risks may have no boundaries, options trading offers a defined risk to buyers.

An option buyer absolutely cannot lose more than the price of the option, the premium. Because the right to buy or sell the underlying security at a specific price expires on a given date, the option will expire worthless if the conditions for profitable exercise or sale of the option contract are not met by the expiration date. An uncovered option seller (sometimes referred to as the uncovered writer of an option), on the other hand, may face unlimited risk. This options trading guide provides an overview of characteristics of equity options and how these investments work in the following segments: Enter a company name or symbol below to view its options chain sheet: Edit Favorites. Enter up to 25 symbols separated by commas or spaces in the text box below. These symbols will be available during your session for use on applicable pages. Customize your NASDAQ. com experience. Select the background color of your choice: Select a default target page for your quote search: Please confirm your selection: You have selected to change your default setting for the Quote Search. This will now be your default target page unless you change your configuration again, or you delete your cookies. Are you sure you want to change your settings? Please disable your ad blocker (or update your settings to ensure that javascript and cookies are enabled), so that we can continue to provide you with the first-rate market news and data you've come to expect from us. how+to+trade+options. Narrow Your Search. Tech Culture (10343) Tech Industry (7022) Internet (3948) Mobile (3830) Phones (1570) Security (1157) Software (1121) Sci-Tech (1050) Gaming (823) Computers (776) Smart Home (626) Applications (618) Gadgets (562) Auto Tech (505) Mobile Apps (455) How to record phone calls.

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By Matt Elliott 22 March 2017. How to Trade Options: The NASDAQ Options Guide - NASDAQ. com. The NASDAQ Options Trading Guide. Equity options today are hailed as one of the most successful financial products to be introduced in modern times. How to Trade Options - Learn Trading Basics from Pros . Still figuring out how to trade options? All investors should have a portion of their portfolio set aside for option trades. Learn why from the pros. How to Trade Options - NerdWallet. What are options? How do they work? When should investors use them? How much do they cost to trade?

Get answers to common options trading questions here. © CBS Interactive Inc. All Rights Reserved. Options Basics: What Are Options? Options are a type of derivative security. They are a derivative because the price of an option is intrinsically linked to the price of something else. Specifically, options are contracts that grant the right, but not the obligation to buy or sell an underlying asset at a set price on or before a certain date. The right to buy is called a call option and the right to sell is a put option. People somewhat familiar with derivatives may not see an obvious difference between this definition and what a future or forward contract does. The answer is that futures or forwards confer both the right and obligation to buy or sell at some point in the future. For example, somebody short a futures contract for cattle is obliged to deliver physical cows to a buyer unless they close out their positions before expiration.

An options contract does not carry the same obligation, which is precisely why it is called an “option.” Call and Put Options. A call option might be thought of as a deposit for a future purpose. For example, a land developer may want the right to purchase a vacant lot in the future, but will only want to exercise that right if certain zoning laws are put into place. The developer can buy a call option from the landowner to buy the lot at say $250,000 at any point in the next 3 years. Of course, the landowner will not grant such an option for free, the developer needs to contribute a down payment to lock in that right. With respect to options, this cost is known as the premium, and is the price of the options contract. In this example, the premium might be $6,000 that the developer pays the landowner. Two years have passed, and now the zoning has been approved the developer exercises his option and buys the land for $250,000 – even though the market value of that plot has doubled. In an alternative scenario, the zoning approval doesn’t come through until year 4, one year past the expiration of this option. Now the developer must pay market price. In either case, the landowner keeps the $6,000.

A put option, on the other hand, might be thought of as an insurance policy. Our land developer owns a large portfolio of blue chip stocks and is worried that there might be a recession within the next two years. He wants to be sure that if a bear market hits, his portfolio won’t lose more than 10% of its value. If the S&P 500 is currently trading at 2500, he can purchase a put option giving him the right to sell the index at 2250 at any point in the next two years. If in six months time the market crashes by 20%, 500 points in his portfolio, he has made 250 points by being able to sell the index at 2250 when it is trading at 2000 – a combined loss of just 10%. In fact, even if the market drops to zero, he will still only lose 10% given his put option. Again, purchasing the option will carry a cost (its premium) and if the market doesn’t drop during that period the premium is lost. These examples demonstrate a couple of very important points. First, when you buy an option, you have a right but not an obligation to do something with it. You can always let the expiration date go by, at which point the option becomes worthless. If this happens, however, you lose 100% of your investment, which is the money you used to pay for the option premium. Second, an option is merely a contract that deals with an underlying asset.

For this reason, options are derivatives. In this tutorial, the underlying asset will typically be a stock or stock index, but options are actively traded on all sorts of financial securities such as bonds, foreign currencies, commodities, and even other derivatives. Buying and Selling Calls and Puts: Four Cardinal Coordinates. Owning a call option gives you a long position in the market, and therefore the seller of a call option is a short position. Owning a put option gives you a short position in the market, and selling a put is a long position. Keeping these four straight is crucial as they relate to the four things you can do with options: buy calls sell calls buy puts and sell puts. People who buy options are called holders and those who sell options are called writers of options. Here is the important distinction between buyers and sellers: Call holders and put holders (buyers) are not obligated to buy or sell. They have the choice to exercise their rights if they choose. This limits the risk of buyers of options, so that the most they can ever lose is the premium of their options. Call writers and put writers (sellers), however, are obligated to buy or sell. This means that a seller may be required to make good on a promise to buy or sell. It also implies that option sellers have unlimited risk , meaning that they can lose much more than the price of the options premium.

Don't worry if this seems confusing – it is. For this reason we are going to look at options primarily from the point of view of the buyer. At this point, it is sufficient to understand that there are two sides of an options contract. To understand options, you'll also have to first know the terminology associated with the options market. The price at which an underlying stock can be purchased or sold is called the strike price. This is the price a stock price must go above (for calls) or go below (for puts) before a position can be exercised for a profit. All of this must occur before the expiration date. In our example above, the strike price for the S&P 500 put option was 2250. The expiration date, or expiry of an option is the exact date that the contract terminates. An option that is traded on a national options exchange such as the Chicago Board Options Exchange (CBOE) is known as a listed option. These have fixed strike prices and expiration dates. Each listed option represents 100 shares of company stock (known as a contract). For call options, the option is said to be in-the-money if the share price is above the strike price.

A put option is in-the-money when the share price is below the strike price. The amount by which an option is in-the-money is referred to as intrinsic value. An option is out-of-the-money if the price of the underlying remains below the strike price (for a call), or above the strike price (for a put). An option is at-the-money when the price of the underlying is on or very close to the strike price. As mentioned above, the total cost (the price) of an option is called the premium. This price is determined by factors including the stock price, strike price, time remaining until expiration (time value) and volatility. Because of all these factors, determining the premium of an option is complicated and largely beyond the scope of this tutorial, although we will discuss it briefly. Although employee stock options aren't available for just anyone to trade, this type of option could, in a way, be classified as a type of call option. Many companies use stock options as a way to attract and to keep talented employees, especially management. They are similar to regular stock options in that the holder has the right but not the obligation to purchase company stock.

The contract, however, exists only between the holder and the company and cannot typically be exchanged with anybody else, whereas a normal option is a contract between two parties that are completely unrelated to the company and can be traded freely. Options Trading Center. Enter up to 25 symbols to get the option chain for your favorite stock. View option chains for: Today's Market Activity. Latest News Headlines. 5:30PM ET - GlobeNewswire. Enter up to 25 symbols separated by commas or spaces in the text box below. These symbols will be available during your session for use on applicable pages. Customize your NASDAQ. com experience. Select the background color of your choice: Select a default target page for your quote search: Please confirm your selection: You have selected to change your default setting for the Quote Search. This will now be your default target page unless you change your configuration again, or you delete your cookies. Are you sure you want to change your settings? Please disable your ad blocker (or update your settings to ensure that javascript and cookies are enabled), so that we can continue to provide you with the first-rate market news and data you've come to expect from us. Options Basics Tutorial.

Nowadays, many investors' portfolios include investments such as mutual funds, stocks and bonds. But the variety of securities you have at your disposal does not end there. Another type of security, known as options, presents a world of opportunity to sophisticated investors who understand both the practical uses and inherent risks associated with this asset class. The power of options lies in their versatility, and their ability to interact with traditional assets such as individual stocks. They enable you to adapt or adjust your position according to many market situations that may arise. For example, options can be used as an effective hedge against a declining stock market to limit downside losses. Options can be put to use for speculative purposes or to be exceedingly conservative, as you want. Using options is therefore best described as part of a larger method of investing. This functional versatility, however, does not come without its costs. Options are complex securities and can be extremely risky if used improperly. This is why, when trading options with a broker, you'll often come across a disclaimer like the following: Options involve risks and are not suitable for everyone. Option trading can be speculative in nature and carry substantial risk of loss.

Only invest with risk capital. Options belong to the larger group of securities known as derivatives. This word has come to be associated with excessive risk taking and having the ability crash economies. That perception, however, is broadly overblown. All “derivative” means is that its price is dependent on, or derived from the price of something else. Put this way, wine is a derivative of grapes ketchup is a derivative of tomatoes. Options are derivatives of financial securities – their value depends on the price of some other asset. That is all derivative means, and there are many different types of securities that fall under the name derivatives, including futures, forwards, swaps (of which there are many types), and mortgage backed securities. In the 2008 crisis, it was mortgage backed securities and a particular type of swap that caused trouble. Options were largely blameless. (See also: 10 Options Strategies To Know .

) Properly knowing how options work, and how to use them appropriately can give you a real advantage in the market. If the speculative nature of options doesn't fit your style, no problem – you can use options without speculating. Even if you decide never to use options, however, it is important to understand how companies that you are investing in use them. Whether it is to hedge the risk of foreign-exchange transactions or to give employees ownership in the form of stock options, most multi-nationals today use options in some form or another. This tutorial will introduce you to the fundamentals of options. Keep in mind that most options traders have many years of experience, so don't expect to be an expert immediately after reading this tutorial. If you aren't familiar with how the stock market works, you might want to check out the Stock Basics tutorial first. How to trade options in the stock market Scottrade, Inc. and Scottrade Bank are separate but affiliated companies and are wholly owned subsidiaries of Scottrade Financial Services, Inc. Brokerage Products and Services offered by Scottrade, Inc. - Member FINRA and SIPC. Deposit products and services offered by Scottrade Bank, Member FDIC.

Brokerage products and services offered by Scottrade, Inc. - Member FINRA and SIPC. Brokerage products are not insured by the FDIC Ђ” are not deposits or other obligations of the Bank and are not guaranteed by the Bank Ђ” are subject to investment risks, including possible loss of the principal invested. Investors should consider the investment objectives, charges, expense, and unique risk profile of an exchange-traded fund (ETF) before investing. A prospectus contains this and other information about the fund and may be obtained online or by contacting Scottrade. The prospectus should be read carefully before investing. Options involve risk and are not suitable for all investors. Detailed information on our policies and the risks associated with options can be found in the Scottrade ® Options Application and Agreement, Brokerage Account Agreement, by downloading the Characteristics and Risks of Standardized Options and Supplements (PDF) from The Options Clearing Corporation, or by requesting a copy by contacting Scottrade. Supporting documentation for any claims will be supplied upon request. Consult with your tax advisor for information on how taxes may affect the outcome of these strategies. Keep in mind, profit will be reduced or loss worsened, as applicable, by the deduction of commissions and fees. All investing involves risk. The value of your investment may fluctuate over time, and you may gain or lose money. Scottrade ® , the Scottrade ® logo and all other trademarks, whether registered or unregistered, are the property of TD Ameritrade IP Company, Inc.

All rights reserved. Used with permission. How to trade options in the stock market The Volatility Finder scans for stocks and ETFs with volatility characteristics that may forecast upcoming price movement, or may identify under - or over-valued options in relation to a security's near - and longer-term price history to identify potential buying or selling opportunities. Volatility Optimizer. The Volatility Optimizer is a suite of free and premium option analysis services and method tools including the IV Index, an Options Calculator, a Strategist Scanner, a Spread Scanner, a Volatility Ranker, and more to identify potential trading opportunities and analyze market moves. The Options Calculator powered by iVolatility. com is an educational tool intended to help individuals understand how options work and provides fair values and Greeks on any option using volatility data and delayed prices. Virtual Options Trading. The Virtual Trade Tool is a state-of-the-art tool designed to test your trading knowledge and lets you try new strategies or complex orders before putting your money on the line. The paperTRADE tool is an easy-to-use, simulated trading system with sophisticated features including what-if and risk analysis, performance charts, easy spread creation using spreadMAKER, and multiple drag and drop customizations. thinkorswim trade w advanced trading tools. Open an account and get up to $600!

New TradeStation Pricing. $5Trade + $0.50 Per Contract for Options. Open an Account. Trade free for 60 days on thinkorswim from TD Ameritrade. *Third Party Advertisement *Third Party Advertisement. Legal & Other Links. Options involve risk and are not suitable for all investors. Prior to buying or selling an option, a person must receive a copy of Characteristics and Risks of Standardized Options (ODD). Copies of the ODD are available from your broker or from The Options Clearing Corporation, One North Wacker Drive, Suite 500, Chicago, Illinois 60606. The information on this website is provided solely for general education and information purposes and therefore should not be considered complete, precise, or current. Many of the matters discussed are subject to detailed rules, regulations, and statutory provisions which should be referred to for additional detail and are subject to changes that may not be reflected in the website information. No statement within the website should be construed as a recommendation to buy or sell a security or to provide investment advice.

The inclusion of non-Cboe advertisements on the website should not be construed as an endorsement or an indication of the value of any product, service, or website. The Terms and Conditions govern use of this website and use of this website will be deemed acceptance of those Terms and Conditions. How to Trade Options – Options Trading Basics. All investors should have a portion of their portfolio set aside for option trades. Not only do options provide great opportunities for leveraged plays they can also help you earn larger profits with a smaller amount of cash outlay. What&rsquos more, option strategies can help you hedge your portfolio and limit potential downside risk. No investors should be sitting on the sidelines simply because they don&rsquot understand options. This Guide to Options Trading Basics provides everything you need to quickly learn the basics of options and get ready for trading. So let&rsquos get started. &mdash Two Basic Types of Options. &mdash At the Money, In the Money, Out of the Money. Understanding Options Risk &ndash How to Trade Options.

&mdash Prices Can Move Very Quickly. &mdash Losses Can Be Subtantial on Naked Short Positions. &mdash Other Common Pitfalls. &mdash The Price Tag Problem. &mdash Buying Call Options. &mdash Buying Put Options. &mdash Margin &ndash Getting &ldquoApproval&rdquo to Trade Options. More On InvestorPlace: Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.

Copyright © 2017 InvestorPlace Media, LLC. All rights reserved. 9201 Corporate Blvd, Rockville, MD 20850. How to trade options in the stock market Enriching Investors Since 1998. Profitable Trading Solutions for the Intelligent Investor. Beginners Guide to Options. What is an option? An option is a contract giving the buyer the right, but not the obligation, to buy or sell an underlying asset (a stock or index) at a specific price on or before a certain date. An option is a derivative. That is, its value is derived from something else.

In the case of a stock option, its value is based on the underlying stock (equity). In the case of an index option, its value is based on the underlying index (equity). · Listed Options are securities, just like stocks. · Options trade like stocks, with buyers making bids and sellers making offers. · Options are actively traded in a listed market, just like stocks. They can be bought and sold just like any other security. · Options are derivatives, unlike stocks (i. e, options derive their value from something else, the underlying security). · Options have expiration dates, while stocks do not. · There is not a fixed number of options, as there are with stock shares available. · Stockowners have a share of the company, with voting and dividend rights. Options convey no such rights.

Some people remain puzzled by options. The truth is that most people have been using options for some time, because option-ality is built into everything from mortgages to auto insurance. In the listed options world, however, their existence is much more clear. Types Of Expiration. There are two different types of options with respect to expiration. There is a European style option and an American style option. The European style option cannot be exercised until the expiration date. Once an investor has purchased the option, it must be held until expiration. An American style option can be exercised at any time after it is purchased. Today, most stock options which are traded are American style options. And many index options are American style. However, there are many index options which are European style options. An investor should be aware of this when considering the purchase of an index option. An option Premium is the price of the option.

It is the price you pay to purchase the option. For example, an XYZ May 30 Call (thus it is an option to buy Company XYZ stock) may have an option premium of Rs.2. The Strike (or Exercise) Price is the price at which the underlying security (in this case, XYZ) can be bought or sold as specified in the option contract. The Expiration Date is the day on which the option is no longer valid and ceases to exist. The expiration date for all listed stock options in the U. S. is the third Friday of the month (except when it falls on a holiday, in which case it is on Thursday). People who buy options have a Right, and that is the right to Exercise. When an option holder chooses to exercise an option, a process begins to find a writer who is short the same kind of option (i. e., class, strike price and option type). Once found, that writer may be Assigned. There are two types of options - call and put. A call gives the buyer the right, but not the obligation, to buy the underlying instrument. A put gives the buyer the right, but not the obligation, to sell the underlying instrument. The predetermined price upon which the buyer and the seller of an option have agreed is the strike price, also called the exercise price or the striking price. Each option on a underlying instrument shall have multiple strike prices. Call option - underlying instrument price is higher than the strike price. Put option - underlying instrument price is lower than the strike price.

Call option - underlying instrument price is lower than the strike price. Put option - underlying instrument price is higher than the strike price. The underlying price is equivalent to the strike price. Options have finite lives. The expiration day of the option is the last day that the option owner can exercise the option. American options can be exercised any time before the expiration date at the owner's discretion. A class of options is all the puts and calls on a particular underlying instrument. The something that an option gives a person the right to buy or sell is the underlying instrument. In case of index options, the underlying shall be an index like the Sensitive index (Sensex) or S&P CNX NIFTY or individual stocks. An option can be liquidated in three ways A closing buy or sell, abandonment and exercising. Buying and selling of options are the most common methods of liquidation. An option gives the right to buy or sell a underlying instrument at a set price. Options prices are set by the negotiations between buyers and sellers. Prices of options are influenced mainly by the expectations of future prices of the buyers and sellers and the relationship of the option's price with the price of the instrument.

The time value of an option is the amount that the premium exceeds the intrinsic value. Time value = Option premium - intrinsic value. Long Term Investing. Multiply your capital by investing. long term trends. Multi Bagger Stocks. Create wealth for yourself. quickly identifying changes in trends, riding the trend. booking profits at the end of the trend. Capture brief price swings. fast moving trending stocks.

intra-day price volatility of the most active stocks in both. BULLISH & BEARISH Markets. generate a steady stream of daily income. Futures Day Trading. maximum profits everyday. highly liquid futures contract. • Use of this website andor products & services offered by us indicates your acceptance of our disclaimer. • Disclaimer: Futures, option & stock trading is a high risk activity. Any action you choose to take in the markets is totally your own responsibility. TradersEdgeIndia. com will not be liable for any, direct or indirect, consequential or incidental damages or loss arising out of the use of this information.

This information is neither an offer to sell nor solicitation to buy any of the securities mentioned herein. The writers may or may not be trading in the securities mentioned. • All names or products mentioned are trademarks or registered trademarks of their respective owners. Discover how to trade options in a speculative market. Learn the basics and explore potential new opportunities on how to trade options. The options market provides a wide array of choices for the trader. Like many derivatives, options also give you plenty of leverage, allowing you to speculate with less capital. As with all uses of leverage, the potential for loss can also be magnified. Explore the information and resources below to learn how to trade options. If you have questions along the way, contact a specialist for help. Understanding the Basics. A long option is a contract that gives the buyer the right to buy or sell the underlying security or commodity at a specific date and price. There is no obligation to buy or sell in the contract, but simply the right to &ldquoexercise&rdquo the contract, if the buyer decides to do so. An option that gives you the right to buy is called a &ldquocall,&rdquo whereas a contract that gives you the right to sell is called a "put.

" Conversely, a short option is a contract that obligates the seller to either buy or sell the underlying security at a specific price, through a specific date. When the buyer of a long option exercises the contract, the seller of a short option is "assigned", and is obligated to act. To make this clearer, let&rsquos use a real world analogy&hellip Let&rsquos say you&rsquore shopping for an antique grandfather clock and find the perfect one at the right price: $3,000. But you won&rsquot have the cash for another three months. You talk to the owner and he agrees to sell it at that price in three months with a specific expiration date, but you have to pay $100 for him to agree to the contract. After three months, you have the money and buy the clock at that price. But maybe it&rsquos discovered that the clock was owned by Theodore Roosevelt, which makes it worth $10,000. You have the right to exercise your option and buy it for $3,000, netting you a profit of $6,900 (minus transaction costs). On the other hand, let&rsquos say it&rsquos discovered that&rsquos it&rsquos not an antique at all, but a knock-off worth only $500. You&rsquore under no obligation to exercise your option and buy it at $3,000, so you can opt not to buy it at all and simply let the contract expire. Although you&rsquore still out the $100, at least you&rsquore not stuck with a clock worth a fraction of what you paid for it. From the option seller's perspective, in the first scenario he gets the $100, but is later forced to sell the clock at less than true market value. In the second scenario, he keeps the clock, and the $100 you paid in premium.

If you understand this concept as it applies to securities and commodities, you can see how advantageous it might be to trade options. For a relatively small amount of capital, you can enter into options contracts that give you the right to buy or sell investments at a set price at a future date, no matter what the price of the underlying security is today. Some things to consider before trading options: Leverage : Control a large investment with a relatively small amount of money. This allows for strong potential returns, but you should be aware that it can also result in significant losses. Flexibility: Options allow you to speculate in the market in a variety of ways, and use a number of creative strategies. There are a wide variety of option contracts available to trade for many underlying securities, such as stocks, indexes, and even futures contracts. Hedging: If you have an existing position in a commodity or stock, you can use option contracts to lock in unrealized gains or minimize a loss with less initial capital. Setting Up an Account. You can trade and invest in options at TD Ameritrade with several account types. You will also need to apply for, and be approved for, margin and option privileges in your account. Choosing a Trading Platform.

With a TD Ameritrade account, you&rsquoll have access to options trading on our web platform, as well as on our two more comprehensive platforms: Trade Architect, and thinkorswim. Trade Architect is ideal for those traders first starting with options. It features fundamental tools, such as P&L charts, option method chain filters, and other tools that can give you ideas and the ability to test your method. The thinkorswim platform is for more advanced options traders. It features elite tools and lets you monitor the options market, plan your method, and implement it in one convenient, easy-to-use, integrated place. Also, if you plan on participating in complex options trades that feature three or four &ldquolegs,&rdquo or sides of a trade, thinkorswim may be right for you. In addition, TD Ameritrade has mobile trading technology, allowing you to not only monitor and manage your options, but trade contracts right from your smartphone, mobile device, or iPad. Developing a Trading method. Like any type of trading, it&rsquos important to develop and stick to a method that works. Traders tend to build a method based on either technical or fundamental analysis. Technical analysis is focused on statistics generated by market activity, such as past prices, volume, and many other variables. Charting and other similar technologies are used. Fundamental analysis focuses on measuring an investment&rsquos value based on economic, financial, and Federal Reserve data. Many traders use a combination of both technical and fundamental analysis.

Whether you use technical or fundamental analysis, or a hybrid of both, there are three core variables that drive options pricing to keep in mind as you develop a method: Price of the underlying security or commodity. Time to expiration. Implied volatility based on market influences and future outlook. With both Trade Architect and thinkorswim, you&rsquoll have tools to help you analyze these variables and more. You&rsquoll also find plenty of third-party fundamental research and commentary, as well as many idea generation tools. You can even &ldquopaper trade&rdquo and practice your method without risking capital. In addition, you can explore a variety of tools to help you formulate an options trading method that works for you. You can also contact a TD Ameritrade Options Specialist anytime via chat, by phone 866-839-1100 or by email 247. Building Your Skills. Whether you&rsquore new to investing, or an experienced trader exploring options, the skills you need to profit from options trading should be continually developed.

You&rsquoll find Trade Architect, is a great way to start. For veteran traders, thinkorswim, has a nearly endless amount of features and capabilities that will help build your knowledge and options trading skills. What Your Financial Services Firm Should Be. See what sets us apart from the rest with our top 6 reasons to choose TD Ameritrade . Compare TD Ameritrade to other leading financial services firms. Best for Long-Term Investing. For five years in a row, we ranked #1 for Long-Term Investing in Barron's 2017 Online Broker Survey. Check the background of TD Ameritrade on FINRA's BrokerCheck. Trade commission-free for 60 days plus get up to $600* Offer Details. #1 for Long-Term Investing. Market volatility, volume and system availability may delay account access and trade executions. Educational resources are provided for general information purposes only and should not be considered an individualized recommendation or advice. Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses. Options trading subject to TD Ameritrade review and approval.

Please read Characteristics and Risks of Standardized Options before investing in options. Past performance of a security or method does not guarantee future results or success. TD Ameritrade, Inc., member FINRA SIPC. This is not an offer or solicitation in any jurisdiction where we are not authorized to do business. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank. © 2017 TD Ameritrade.