How to Set Up Automatic Exits from Options Trades
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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. Call Schwab at 1-800-435-4000 for a current copy. Supporting documentation for any claims or statistical information is available upon request.
The information here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The securities and investment strategies mentioned are not suitable for everyone. Each investor needs to review each transaction for their own particular situation.
Investing involves risk, including loss of principal.
Past performance is no guarantee of future results.
Schwab does not recommend the use of technical analysis as a sole means of investment research.
There is no guarantee that execution of a stop order will be at or near the stop price.
Conditional orders are held on Schwab's servers and not routed until your order conditions have been met.
With long options, investors may lose 100% of funds invested.
Commissions, taxes and transaction costs are not included in this discussion, but can affect final outcome and should be considered. Please contact a tax advisor for the tax implications involved in these strategies.
The paperMoney® software application is provided for educational purposes only, and allows users to engage in simulated trading with hypothetical funds using live market data. Market activity, trade executions, transaction costs, and other elements presented in paperMoney are simulations only. Simulated performance does not ensure success in a live environment.