Expert Insight & Commentary
Options Article Library
Combine a Covered Call and a CSEP
by Randy Frederick
April 23, 2013
A CSEP and a covered call can complement each other in an actively managed, income-oriented portfolio.
by Randy Frederick
April 23, 2013
A CSEP and a covered call can complement each other in an actively managed, income-oriented portfolio.
What is a Mini Option?
by Nathan Peterson
April 5, 2013
Find out how mini options—smaller contract sizes on certain high-price stocks—may give options traders greater flexibility.
by Nathan Peterson
April 5, 2013
Find out how mini options—smaller contract sizes on certain high-price stocks—may give options traders greater flexibility.
Your Very First Options Trade
by Randy Frederick
April 2, 2013
You don't have to take a big jump into options; first, try dipping your toe in with covered calls.
by Randy Frederick
April 2, 2013
You don't have to take a big jump into options; first, try dipping your toe in with covered calls.
Reducing Your Exposure with Covered Calls
by Randy Frederick
February 26, 2013
Find out how covered calls can help reduce your exposure when you're highly concentrated in a single stock.
by Randy Frederick
February 26, 2013
Find out how covered calls can help reduce your exposure when you're highly concentrated in a single stock.
How to Hedge Your Portfolio
by Nathan Peterson
February 25, 2013
Concerned about a short-term dip in the market? Find out when a portfolio hedge might make sense and how to set it up.
by Nathan Peterson
February 25, 2013
Concerned about a short-term dip in the market? Find out when a portfolio hedge might make sense and how to set it up.
The Protective Put Ratio Backspread
by Randy Frederick
January 30, 2013
Looking for more upside potential than a traditional collar offers? Consider the risk-reward tradeoff of a protective put ratio backspread.
by Randy Frederick
January 30, 2013
Looking for more upside potential than a traditional collar offers? Consider the risk-reward tradeoff of a protective put ratio backspread.
To Trade or Not to Trade: Putting the Greeks to Work
by Randy Frederick
January 10, 2013
Find out how the Greeks may help you decide whether to trade or not.
by Randy Frederick
January 10, 2013
Find out how the Greeks may help you decide whether to trade or not.
Putting Options to Work
by Randy Frederick
January 4, 2013
The final installment of a two-part series: How to use basic options strategies in your portfolio.
by Randy Frederick
January 4, 2013
The final installment of a two-part series: How to use basic options strategies in your portfolio.
Screening for Weekly Buy/Write Candidates
by Randy Frederick
January 2, 2013
Learn how to find good buy/write candidates using the new weekly options.
by Randy Frederick
January 2, 2013
Learn how to find good buy/write candidates using the new weekly options.
5 Myths of Volatility Options
by Randy Frederick
December 31, 2012
Volatility options are very different from regular index options—proceed with caution.
by Randy Frederick
December 31, 2012
Volatility options are very different from regular index options—proceed with caution.
Enter Buy/Writes With StreetSmart Edge
by Randy Frederick,
December 31, 2012
Read how to implement covered calls using the buy/ write order entry on StreetSmart Edge®.
by Randy Frederick,
December 31, 2012
Read how to implement covered calls using the buy/ write order entry on StreetSmart Edge®.
What's Really Going on in the Options Market?
by Randy Frederick
December 27, 2012
StreetSmart Edge's options features can provide insight into the options marketplace.
by Randy Frederick
December 27, 2012
StreetSmart Edge's options features can provide insight into the options marketplace.
Managing a Long Stock Position
by Randy Frederick
December 27, 2012
What happens when the stock you bought doesn't go up like you thought it would? We explore some potential next steps.
by Randy Frederick
December 27, 2012
What happens when the stock you bought doesn't go up like you thought it would? We explore some potential next steps.
Why Trade Foreign Currency Options
by Randy Frederick
December 20, 2012
You can use foreign currency options to hedge or speculate on the US dollar relative to other major currencies.
by Randy Frederick
December 20, 2012
You can use foreign currency options to hedge or speculate on the US dollar relative to other major currencies.
Best Practices for Trading Options in Volatile Markets
by Randy Frederick
December 20, 2012
Six steps to help keep your options trading on track despite volatility.
by Randy Frederick
December 20, 2012
Six steps to help keep your options trading on track despite volatility.
Expecting a Big Move One Way or the Other? Try a Long Straddle
by Randy Frederick
December 20, 2012
Take advantage of a stock breakout or changes in volatility with a straddle—a long put and a long call.
by Randy Frederick
December 20, 2012
Take advantage of a stock breakout or changes in volatility with a straddle—a long put and a long call.
Bearish Spreads: Finding Good Candidates
by Randy Frederick
December 19, 2012
How to structure a bearish spread to help match your level of bearishness.
by Randy Frederick
December 19, 2012
How to structure a bearish spread to help match your level of bearishness.
Help! How Do I Track Volatility?
by Randy Frederick
December 18, 2012
What to do if the volatility indicators you previously used to trade options no longer work.
by Randy Frederick
December 18, 2012
What to do if the volatility indicators you previously used to trade options no longer work.
Expecting Stability or Little Price Movement? Consider a Short Straddle
by Randy Frederick
December 17, 2012
Take advantage of a sideways market or decreasing volatility with a short straddle—a short call combined with a short put.
by Randy Frederick
December 17, 2012
Take advantage of a sideways market or decreasing volatility with a short straddle—a short call combined with a short put.
Screening for Buy/Write Candidates
by Randy Frederick
December 17, 2012
There are almost always good buy/write candidates out there, but how do you find them?
by Randy Frederick
December 17, 2012
There are almost always good buy/write candidates out there, but how do you find them?
Long Strangles: A Breakout Strategy for Volatile Markets
by Randy Frederick
December 13, 2012
A strangle can position you for profit whether a stock rises or falls, and even help you take advantage of volatility swings during earnings season.
by Randy Frederick
December 13, 2012
A strangle can position you for profit whether a stock rises or falls, and even help you take advantage of volatility swings during earnings season.
Understanding Weekly and Quarterly Options
by Nathan Peterson
December 12, 2012
What's behind the buzz around these popular options? In a word: flexibility.
by Nathan Peterson
December 12, 2012
What's behind the buzz around these popular options? In a word: flexibility.
Go Greek
by Randy Frederick
December 11, 2012
Greeks can help options traders make more informed decisions about which options to trade and when to trade them.
by Randy Frederick
December 11, 2012
Greeks can help options traders make more informed decisions about which options to trade and when to trade them.
Reducing Risk With Credit Spreads
by Randy Frederick
December 10, 2012
Credit spreads allow you to substantially limit risk by forgoing a limited amount of profit potential.
by Randy Frederick
December 10, 2012
Credit spreads allow you to substantially limit risk by forgoing a limited amount of profit potential.
Screening for CSEP Candidates
by Randy Frederick
December 10, 2012
There are almost always good CSEP candidates out there. Here's how to search for them.
by Randy Frederick
December 10, 2012
There are almost always good CSEP candidates out there. Here's how to search for them.
Short Strangles: Making the Most of Sideways Markets
by Randy Frederick
December 10, 2012
A short strangle, which combines a short call with a short put, is another way to take advantage of a sideways market or decreasing volatility.
by Randy Frederick
December 10, 2012
A short strangle, which combines a short call with a short put, is another way to take advantage of a sideways market or decreasing volatility.
Understanding Adjusted Options
by Randy Frederick
December 5, 2012
Find out why options are adjusted and how to identify and deal with adjusted options.
by Randy Frederick
December 5, 2012
Find out why options are adjusted and how to identify and deal with adjusted options.
The Option Repair Strategy
by Randy Frederick
December 3, 2012
Not every stock you buy will go up. Find out how to use options to potentially recover your losses faster if a stock turns against you.
by Randy Frederick
December 3, 2012
Not every stock you buy will go up. Find out how to use options to potentially recover your losses faster if a stock turns against you.
Chart Studies for Options Traders
by Randy Frederick
November 21, 2012
Volatility and trader-sentiment studies can help you assess where an option may be heading.
by Randy Frederick
November 21, 2012
Volatility and trader-sentiment studies can help you assess where an option may be heading.
Options Screeners at Schwab
by Randy Frederick
November 21, 2012
Can't decide which option to trade? Find out how these Schwab.com screening tools can help.
by Randy Frederick
November 21, 2012
Can't decide which option to trade? Find out how these Schwab.com screening tools can help.
What Put/Call Ratios Can Do for You
by Randy Frederick
November 20, 2012
Looking to get a read on the options markets? Put/call ratios can help.
by Randy Frederick
November 20, 2012
Looking to get a read on the options markets? Put/call ratios can help.
Managing Long Puts
by Randy Frederick
November 20, 2012
What happens when your long put trade doesn't go according to plan? If there's some time left until expiration, consider these next steps.
by Randy Frederick
November 20, 2012
What happens when your long put trade doesn't go according to plan? If there's some time left until expiration, consider these next steps.
Managing Cash-Secured Equity Puts
by Randy Frederick
November 2, 2012
Find out how you can adjust your cash-secured equity puts (CSEPs) prior to expiration.
by Randy Frederick
November 2, 2012
Find out how you can adjust your cash-secured equity puts (CSEPs) prior to expiration.
Managing Risk Using Options: Equity Collars and Cash-Secured Equity Puts
by Randy Frederick
October 24, 2012
Part three of a three-part series: How to use collars and cash-secured equity puts (CSEPs) to help limit the risks of equity positions.
by Randy Frederick
October 24, 2012
Part three of a three-part series: How to use collars and cash-secured equity puts (CSEPs) to help limit the risks of equity positions.
Bullish Spreads: Finding Good Candidates
by Randy Frederick
October 25, 2012
How to structure a bullish spread to match your level of bullishness.
by Randy Frederick
October 25, 2012
How to structure a bullish spread to match your level of bullishness.
Managing Covered Calls
by Randy Frederick
September 11, 2012
When your covered call is expiring, know what your options are.
by Randy Frederick
September 11, 2012
When your covered call is expiring, know what your options are.
Managing Long Options Positions
by Randy Frederick
August 20, 2012
What happens when your long options position doesn't go according to plan? If you still have some time left until expiration, all hope is not lost. We explore some potential next steps.
by Randy Frederick
August 20, 2012
What happens when your long options position doesn't go according to plan? If you still have some time left until expiration, all hope is not lost. We explore some potential next steps.
Options Strategies for Earnings Season
by Randy Frederick
July 17, 2012
Volatility usually increases during the earnings season—something that traders may be able to use to their advantage.
by Randy Frederick
July 17, 2012
Volatility usually increases during the earnings season—something that traders may be able to use to their advantage.
The Importance of Ex-dividend Dates
by Randy Frederick
June 27, 2012
Ex-dividend dates can be your friend or your foe, so make sure you know when they occur.
by Randy Frederick
June 27, 2012
Ex-dividend dates can be your friend or your foe, so make sure you know when they occur.
The Put Spread Collar
by Randy Frederick
April 25, 2012
Looking for more upside potential than a traditional collar offers? Consider the risk-reward trade-off of a put spread collar.
by Randy Frederick
April 25, 2012
Looking for more upside potential than a traditional collar offers? Consider the risk-reward trade-off of a put spread collar.
Check out a LEAPS Diagonal Spread
by Randy Frederick
April 3, 2012
Diagonal spreads with LEAPS® options are an innovative options strategy that allows you to take advantage of time decay. Find out how.
by Randy Frederick
April 3, 2012
Diagonal spreads with LEAPS® options are an innovative options strategy that allows you to take advantage of time decay. Find out how.
The Covered Combo
by Randy Frederick
February 16, 2012
Find out how this unique options strategy may help you generate income in a sideways market.
by Randy Frederick
February 16, 2012
Find out how this unique options strategy may help you generate income in a sideways market.
What's Fair Value?
by Randy Frederick
January 31, 2012
The topic of "fair value" is often discussed on financial news networks, but many investors may not understand what it means or how it's calculated. We explain.
by Randy Frederick
January 31, 2012
The topic of "fair value" is often discussed on financial news networks, but many investors may not understand what it means or how it's calculated. We explain.
Diagonal Spreads: Finding Good Candidates
by Randy Frederick
December 15, 2011
Are you bullish in the short term? But bearish in the long term? Or vice versa? Plus, are you interested in taking advantage of volatility skew? Consider diagonal spreads.
by Randy Frederick
December 15, 2011
Are you bullish in the short term? But bearish in the long term? Or vice versa? Plus, are you interested in taking advantage of volatility skew? Consider diagonal spreads.
Calendar Spreads: Finding Good Candidates
by Randy Frederick
November 10, 2011
Are you bullish in the long-term? But bearish in the short-term? Or vice versa? Consider calendar spreads.
by Randy Frederick
November 10, 2011
Are you bullish in the long-term? But bearish in the short-term? Or vice versa? Consider calendar spreads.
Trading Collars on ETFs in Volatile Markets
by Randy Frederick
October 26, 2011
Volatile range-bound markets can be stressful on an ETF portfolio. An actively managed collar strategy may help you smooth out some of that volatility and generate short-term income.
by Randy Frederick
October 26, 2011
Volatile range-bound markets can be stressful on an ETF portfolio. An actively managed collar strategy may help you smooth out some of that volatility and generate short-term income.
The Dividend Options Trade
by Randy Frederick
May 19, 2011
Looking for dividends? Learn how one options strategy—buy writes—may be able to help you capture them.
by Randy Frederick
May 19, 2011
Looking for dividends? Learn how one options strategy—buy writes—may be able to help you capture them.
Vertical Spread Candidates
by Randy Frederick
April 13, 2011
Find out how to select good candidates for this popular options strategy.
by Randy Frederick
April 13, 2011
Find out how to select good candidates for this popular options strategy.
Video | Using Options for Hedging and Income Generation
For investors just starting to explore options trading, this video explores the benefits and the risks of covered calls and protective puts.
For investors just starting to explore options trading, this video explores the benefits and the risks of covered calls and protective puts.
Intro to Covered Calls and Covered Puts
by Randy Frederick
Updated July 22, 2010
Beginning options investors often start with covered calls and covered puts, which can potentially help increase profits and limit losses simultaneously.
by Randy Frederick
Updated July 22, 2010
Beginning options investors often start with covered calls and covered puts, which can potentially help increase profits and limit losses simultaneously.
Finding an Options Strategy
by Randy Frederick
Updated September 4, 2009
Schwab options traders have a valuable tool at their disposal -- our Option Strategy Finder. Use it to help identify an options strategy based on your market outlook.
by Randy Frederick
Updated September 4, 2009
Schwab options traders have a valuable tool at their disposal -- our Option Strategy Finder. Use it to help identify an options strategy based on your market outlook.
Trading Options for Retirement
by Randy Frederick, Director of Trading and Derivatives, Schwab Center for Financial Research
June 17, 2009
How to use covered calls, collars and CSEPs to help save for retirement.
by Randy Frederick, Director of Trading and Derivatives, Schwab Center for Financial Research
June 17, 2009
How to use covered calls, collars and CSEPs to help save for retirement.
Getting Started With Options
by Randy Frederick, Director of Trading and Derivatives, Schwab Center for Financial Research
July 1, 2008
The basics of options, and how they can offer sensible and effective ways for investors to help protect against loss.
by Randy Frederick, Director of Trading and Derivatives, Schwab Center for Financial Research
July 1, 2008
The basics of options, and how they can offer sensible and effective ways for investors to help protect 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. Writing uncovered options involves potentially unlimited risk. Covered calls provide downside protection only to the extent of the premium received and limit upside potential to the strike price plus premium received. With long options, investors may lose 100% of funds invested. Multiple-leg options strategies will involve multiple commissions. Spread trading must be done in a margin account. Please read the Options Disclosure Document titled Characteristics and Risks of Standardized Options before considering any option transaction. Call Schwab at 800-435-4000 for a current copy.