Options

Powerful tools with great service and value
  • Among the lowest options commissions in the market
  • Best-in-class platform for trading options on equities, indexes, and futures
  • Support from knowledgeable Options Specialists
  • Close short options positions priced at 10¢ or less commission-free

50¢ equity and index options

per contract when you place 30+ stock or options trades per quarter2

$1.50 futures options

per contract3

Get up to $600 plus 60 days of commission-free stocks and options trades for deposits and transfers of $10k or more.1 How it works
Get up to $600 plus 60 days of commission-free stocks and options trades for deposits and transfers of $10k or more.1 How it works

Best-in-class4 OptionsHouse trading platform

It’s in the name for good reason—a best-in-class platform for options trading on equities, indexes, and futures, built by those who have won both Barron’s “Best for Options Traders” and StockBrokers.com’s “Best in Class” for Options Trading eight years in a row.4,5

Dime Buyback Program

You will pay no per-contract or base commission charge when you buy to close an equity option priced at 10 cents or less. This allows you to close short options positions that may have risk, but currently offer little or no reward potential—without paying any commissions. There’s no sign-up required. This program automatically applies anytime you buy to close an equity option priced at 10 cents or less.

Discover options on futures

Same strategies as securities options, more hours to trade. Options on futures offer nearly 24-hour accessand diversification. Trade options on oil, gold, and corn futures as easily as you trade options on the S&P 500® Index.


Options Pricing

View all pricing and rates
 

Pricing

Preferred 30+ Trades / QTR

Standard <30 Trades / QTR

Equity and Index Options
$0.50 per contract
plus $4.95 base
$0.75 per contract
plus $6.95 base
 
Futures Options
$1.50 per contract $1.50 per contract


Options Levels

Add options trading to an existing brokerage account. Apply now
 

Level 1 objective:

Capital preservation or income

Options strategies available:

Covered positions

  • Covered calls (sell calls against stock held long)
  • Buy-writes (simultaneously buy stock and sell calll)
  • Covered call rolling (buy a call to close and sell a different call)
Important note:
Options involve risk and are not suitable for all investors. For more information, please read the Characteristics and Risks of Standardized Options before you begin trading options. Also, there are specific risks associated with covered call writing, including the risk that the underlying stock could be sold at the exercise price when the current market value is greater than the exercise price the call writer will receive. A covered call writer forgoes participation in any increase in the stock price above the call exercise price and continues to bear the downside risk of stock ownership if the stock price decreases more than the premium received. Because of the importance of tax considerations to all options transactions, the investor considering options should consult their tax advisor as to how taxes affect the outcome of each options strategy. Commissions and other costs may be a significant factor. An options investor may lose the entire amount of their investment in a relatively short period of time.

Level 2 objective:

Income or growth

Options strategies available:

All Level 1 strategies, plus:

  • Long calls and long puts
  • Married puts (buy stock and buy put)
  • Collars
  • Long straddles and long strangles
  • Cash-secured puts (cash on deposit to buy stock if assigned)
Important note:
Options involve risk and are not suitable for all investors. For more information, please read the Characteristics and Risks of Standardized Options before you begin trading options. Moreover, there are specific risks associated with buying options, including the risk that the purchased options could expire worthless. Also, the specific risks associated with selling cash-secured puts include the risk that the underlying stock could be purchased at the exercise price when the current market value is less than the exercise price the put seller will receive. Because of the importance of tax considerations to all options transactions, the investor considering options should consult their tax advisor as to how taxes affect the outcome of each options strategy. Commissions and other costs may be a significant factor. An options investor may lose the entire amount of their investment in a relatively short period of time.

Level 3 objective:

Growth or speculation

Options strategies available:

All Level 1 and 2 strategies, plus:

  • Debit spreads and credit spreads
  • Calendar spreads and diagonal spreads (long only)
  • Butterflies and condors
  • Iron butterflies and iron condors
  • Naked puts8
*Margin approval is required for Levels 3 and 4.
Important note:
Options involve risk and are not suitable for all investors. For more information, please read the Characteristics and Risks of Standardized Options before you begin trading options. Moreover, there are specific risks associated with trading spreads, including substantial commissions, because it involves at least twice the number of contracts as a long or short position and because spreads are almost invariably closed out prior to expiration. Multi-leg options including collar strategies involve multiple commission charges. Because of the importance of tax considerations to all options transactions, the investor considering options should consult their tax advisor as to how taxes affect the outcome of each options strategy. Commissions and other costs may be a significant factor. An options investor may lose the entire amount of their investment in a relatively short period of time.

Level 4 objective:

Speculation

Options strategies available:

All Level 1, 2, and 3 strategies, plus:

  • Naked calls8
*Margin approval is required for Levels 3 and 4.
Important note:
Options transactions are complex and carry a high degree of risk. They are intended for sophisticated investors and are not suitable for everyone. Also, there are specific risks associated with uncovered options writing that expose the investor to potentially significant loss. Please read the Characteristics and Risks of Standardized Options and the Special Statement for Uncovered Options Writers before you trade options. Because of the importance of tax considerations to all options transactions, the investor considering options should consult their tax advisor as to how taxes affect the outcome of each options strategy. Commissions and other costs may be a significant factor. An options investor may lose the entire amount of their investment in a relatively short period of time.

 

Dedicated support for options traders

Have platform questions? Want to discuss complex trading strategies? Our dedicated Trader Service Team includes many former floor traders and Futures Specialists who share your passion for options trading.
Call us at 800-387-2331 (800-ETRADE-1)