Trading stock options can be complex — even more so than stock trading. When you buy a stock, you just decide how many shares you want, and your broker fills.
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- Mutual Funds and Mutual Fund Investing - Fidelity Investments
- CommSec - Options Account - Join Now
- Options strategy
Research is an important part of selecting the underlying security for your options trade. Use our charts to examine price history and perform technical analysis to help you decide which strike prices to choose. It's important to have a clear outlook—what you believe the market may do and when—and a firm idea of what you hope to accomplish.
Mutual Funds and Mutual Fund Investing - Fidelity Investments
Having a trading plan in place makes you a more disciplined options trader. Use the Strategy Optimizer tool to quickly scan the market for potential strategy ideas based on your market outlook, target stock price, time frame, investment amount, and options approval level. Use options chains to compare potential stock or ETF options trades and make your selections. Use the Options Analyzer tool to see potential max profits and losses, break-even levels, and probabilities for your strategy.
CommSec - Options Account - Join Now
Watch our demo to see how it works. The Options Income Backtester tool enables you to view historical returns for income-focused options trades, as compared to owning the stock alone. Start with nine pre-defined strategies to get an overview, or run a custom backtest for any option you choose. Watch our platform demos to see how it works. Use the Options Income Finder to screen for options income opportunities on stocks, a portfolio, or a watch list.
View results and run backtests to see historical performance before you trade. Select positions and create order tickets for market, limit, stop, or other orders, and more straight from our options chains. Ready to trade? Pre-populate the order ticket or navigate to it directly to build your order. Need some guidance? Help icons at each step provide assistance if needed. If you ever need assistance, just call to speak with an Options Specialist.
Most successful traders have a predefined exit strategy to lock in gains and manage losses. This is an essential step in every options trading plan. Weigh your market outlook and time horizon for how long you want to hold the position, determine your profit target and maximum acceptable loss, and help manage risk by:.
Whether your position looks like a winner or a loser, having the ability to make adjustments from time to time gives you the power to optimize your trades. Open topic with navigation.
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Trading permissions specify the products you can trade where you can trade them. You modify existing trade permissions or subscribe to new permissions on the Trading Permissions screen. When specifying permissions, you will be asked to sign any risk disclosures required by local regulatory authority. Skip to Main Content. Search fidelity. Investment Products. Why Fidelity. Home » Investment Products » Options Trading ».
Print Email Email. Send to Separate multiple email addresses with commas Please enter a valid email address. Your email address Please enter a valid email address. Message Optional. Options Trading Overview. How to start trading options As you consider trading options, use the resources here to help you understand the application process and review answers to frequently asked questions to get started. Things to know before you apply Apply online If you have an account, you can apply online Log In Required.
Please be ready to provide the following: Yearly income Trading experience Net worth and liquid net worth. Approval time We'll let you know which options level you're approved to trade—either by email in 1 to 2 days or by US Mail generally within 3 to 5 days—based on your delivery preferences. Frequently asked questions.
Options strategy
Expand all Collapse all. Getting started Why might you consider trading options?
Anyone can trade options in their brokerage account, if approved. At Fidelity, this requires completing an options application that asks questions about your financial situation and investing experience, and reading and signing an options agreement. It is also possible to trade some options strategies in other types of accounts, such as an IRA. Options trading strategies involve varying degrees of risk and complexity. Not all strategies are suitable for all investors.
There are 5 levels of options trading at Fidelity, and approval requirements are more rigorous at subsequent levels, given the additional risks associated with more complex strategies. Your financial situation, trading experience, and investment objectives are taken into consideration for approval. Options Level 1 includes: Selling covered calls Rolling covered calls Buy-writes. Options Level 3 includes Level 1—2 strategies, plus: Spreads up to 4 legs Selling covered puts-short stock secured.