Trading options

All information you provide will be used by Fidelity solely for the purpose of sending the email on your behalf. Your orders must be limit orders. To refresh these figures, click Refresh. Trade options—anytime, anywhere Get real-time quotes for a single option or use the options chain to view them all Track your account positions and preferred securities Get the latest news and views on the market. With a put option, the buyer has the right to sell shares of the underlying security at a specified price for a specified period of time.

You can access Fidelity's Options Trading Agreement on the About Options Trading page in's online Brokerage Handbook. Also, offers comprehensive options educational material in the Learning Center, under Learn About Options and from the Chicago Board of Options Exchange (CBOE).

How does extended hours trading differ from trading during the standard day market?

For help setting up your options trading account, please call us. If you have an account, you can apply online Log In Required or call an investment professional at Please be ready to provide the following:.

We'll let you know which options level you're approved to trade—either by email in 1 to 2 days or by U. Mail in 3 to 5 days—based on your delivery preferences.

Or call us after 48 hours at , and we can provide you with your approval information. Options trading strategies involve varying degrees of risk and complexity. Not all strategies are suitable for all investors. There are five levels of options trading approval, and the approval requirements are greater for each additional level since there's more risk for you and Fidelity. Your financial situation, trading experience, and investment objectives are taken into consideration for approval.

An Options Agreement is part of the Options Application. To trade options on margin, you need a Margin Agreement on file with Fidelity.

After you log in to Fidelity, you can review the Margin and Options page to see if you have an agreement. If you do not have a Margin Agreement, you must either add margin or use cash. Typically, multi-leg options are traded according to a particular multi-leg options trading strategy. With a call option, the buyer has the right to buy shares of the underlying security at a specified price for a specified time period.

With a put option, the buyer has the right to sell shares of the underlying security at a specified price for a specified period of time. Extended Hours trading can give Fidelity's customers greater flexibility in managing their trading activity, and allow customers to react to market news during extended trading hours.

Due to the nature of the extended hours trading market, trading through an ECN may pose certain risks which are greater than those present during standard market hours. These risks include lack of liquidity, greater price volatility and price spreads, limited access to other markets and market information, price variance from standard market hours, the time and price prioritization of orders, and communication delays.

These risks may prevent your order from being executed, in whole or in part, or from receiving as favorable a price as you might receive during standard market hours. Also, before placing your first trade in the Extended Hours Session, you must speak to a representative to discuss the risks associated with this market. Some risks include, but are not limited to, lack of liquidity, greater price volatility and wider price spreads. An ECN is an electronic order matching system in which investors and other market participants may participate.

You can place orders through the ECN during the extended hours trading sessions. As with regular session trades, you must have a Margin Agreement on file with Fidelity to trade on margin or to place a sell short order. If you do not have a Margin Agreement, you must use cash. You can a buy, buy to cover, sell or short sale during the premarket and after hours sessions.

Your orders must be limit orders. Time-in-force limitations must be either day, or immediate or cancel. Day orders are good until the premarket or after hours session ends. You will only see the Buy to Cover and Sell Short actions if you are eligible to place these types of orders.

Short sales are eligible ONLY from 8: Hitting the right strike price Here are a few ways to help pick the optimal strike price when buying or selling options. Trading options on Fidelity. Profit and loss calculator video Model options strategies to see profit and loss potential, and change assumptions such as underlying price, volatility, or days to expiration.

Argus option reports Watch this video on Argus reports on Fidelity. Get to know the Greeks Use these tools to enhance your options trading proficiency.

Options trading mistakes to avoid Learn how you may be able to avoid making these options trading mistakes to make more informed decisions. How to sell covered calls This relatively simple options strategy can potentially generate income on stocks you own. The leveraged covered call option Generate the same profit potential as a covered call, without owning the underlying stock.

Why use a covered call? The covered call strategy involves selling a call option contract while at the same time owning an equivalent number of shares of the underlying stock.

The bull put spread Capture potential profits from a rising stock while putting a limit on potential losses. The bull call spread A strategy designed to take advantage of price gains while potentially limiting risk. The bear call spread This options strategy can be used to potentially profit in a down market.

The bear put spread How you may potentially profit from a falling stock price, while potentially limiting risk. Trade like a butterfly Read about this limited-risk option strategy that can help you manage volatility. Straddling the market for opportunities Here's an options strategy designed to potentially profit when you expect a big move. Take advantage of volatility with options The long strangle is a strategy designed to potentially profit when you expect a big move.

Options Basics

Options Trading Options are a flexible investment tool that can help you take advantage of any market condition. With the ability to generate income, help limit risk or take advantage of your bullish or bearish forecast, options can help you achieve your investment goals. Trading Options An option is a right to buy or sell a specific security, such as stocks, at a guaranteed price for a specific period of time. Options trading is a specialized form of stock trading. Options can be powerful investing instruments to help generate income, manage risk, and trade volatility. Beginner strategies, such as buying and selling options, demonstrate how these investments can help provide dynamic alternatives to traditional ones. More advanced strategies offer unique and tactical ways to capitalize on trends in the market.


The option ticket on allows you to easily find, analyze, and enter the strategy you want to trade. This includes a single, multi-leg or custom strategy. Watch this video to learn how to leverage's option trading functionality to enhance your investing experience. Important. Options Trading Platforms. Experience the power of the Active Trader Pro ®,1 trading platform, the helpful tools on our pages, and the convenience of mobile trading. If you use your SSN to log in, please create a personalized username for added security. Use the Need Help links to the right to change your login information. For outside the U.S. employees, your Participant Number is your Username and if you created a PIN previously, it is now considered your Password.

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