Download the Schwab app from iTunes®Get the AppClose

  • Find a branch
  • Chat
To expand the menu panel use the down arrow key. Use Tab to navigate through submenu items.

Print
 

Trading Insights Options

Smart options trading starts with options training.

Meet our options trading specialists
Randy Frederick
Vice President of Trading and Derivatives
Photo of Randy Frederick
A respected industry veteran with more than 25 years of experience, Randy focuses primarily on client education and market analysis. In addition to hosting the weekly Schwab Market Snapshot video series, he regularly writes timely blogs and helpful educational articles for the Schwab website.

Get the latest market commentary from Randy >
Nate Peterson
Senior Derivatives Analyst
Photo of Nate Peterson
Nate is responsible for options-related business development and client education at Schwab. As a former business analyst within Schwab’s product development department, he helped develop many options-related features on Schwab’s trading platforms.


Read Today's Options Market Update >

See if you can ace our
options knowledge quiz...

You vs Randy trivia game

See if you can ace our options knowledge quiz...

Start Quiz >
Randy Frederick
Schwab's Managing Director of Trading and Derivatives
00:15
Randy Frederick
Schwab's Managing Director of Trading
Q
Question 1
Question 2
Question 3
Question 4
Question 5

Which of the following is used in technical analysis?

Which of the following is NOT a key characteristic of options trading?

Options trading can be used for:

Writing options on stocks you already own is called a:

When a put options’ strike price is above the market price of the underlying security, it is:


Countdown clock 00:30`
A
Valuation
B
Trend Lines
C
Financial Strength
D
Earnings Growth
Correct!

Trend lines visually show support and resistance in a certain time frame.

A
Open Interest
B
Time Value
C
Close Interest
D
Intrinsic Value
Correct!

These other three statistics are commonly used by options traders.

A
Speculation
B
Income Generation
C
Neutral Strategies
D
All of the above
Correct!

Options can be used for speculation, income generation, neutral or directional strategies and much more.

A
Covered Call
B
Bull Spread
C
Butterfly Spread
D
Contingency Order
Correct!

Because you own the underlying asset, a covered call is a limited risk strategy.

A
A Net Credit
B
In-The-Money
C
Out-Of-The_Money
D
At-The-Money
Correct!

“In-the-money” refers to an option’s intrinsic value.

You got 2 questions right!

Now take your options knowledge to the next level.

Technical Analysis Trading Habits Options Trading (video) Covered Calls Options Value

Close

Options Trading Explained
For traders just getting into options, these resources will help cover the basic components of an options trade as well as a few strategies to help get you started.
Advanced Options Trading
Already made some options trades and looking for new ideas? We’ve got you covered.
Disclosure
Options carry a high level of risk and are not suitable for all investors. Certain requirements must be met to trade options. Multiple-leg options strategies will involve multiple commissions. Please read the Options Disclosure Document titled Characteristics and Risks of Standardized Options. before considering any option transaction.
Multiple-leg options strategies will involve multiple commissions. Covered calls provide downside protection only to the extent of the premium received and limit upside potential to the strike price plus premium received.
Supporting documentation for any claims or statistical information is available upon request.