Options

We’ve all heard of options. They may seem overwhelming to think about, but options are easy to understand if you know a few key points. Investor portfolios are usually constructed with several asset classes. These may be stocks, bonds, ETFs, and even mutual funds. Options are another asset class, and when used correctly, they offer many advantages that trading stocks and ETFs alone cannot. Options can be purchased like most other asset classes with brokerage investment accounts. Options are powerful because they can enhance an individual’s portfolio. They do this through added income, protection, and even leverage. Depending on the situation, there is usually an option scenario appropriate for an investor’s goal. A popular example would be using options as an effective hedge against a declining stock market to limit downside losses. Options can also be used to generate recurring income. Additionally, they are often used for speculative purposes such as wagering on the direction of a stock.

Your platform for intuitive options trading

Power Quantum-capitalpartners is our easy-to-use platform built for trading options on stocks, indexes, and futures. It breaks down the complexities of options with sophisticated tools that add efficiency and simplicity to our analysis and trading.

Easily assess the potential risks and rewards of an options trade, including break-evens and theoretical probabilities.

Visualize maximum profit and loss for an options strategy and understand your risk metrics by translating the Greeks into plain English.

Scan for unusual options activity or equites with outsized volatility, then click to dig deeper or place a trade.

Quantify the potential impact of market events on your portfolio, view potential P&L numerically and graphically, Beta-weight results to the S&P 500, and see how your portfolio could react to changes in volatility.

Discover options on futures

Same strategies as securities options, more hours to trade. Options on futures offer nearly 24-hour access5 and diversification. We trade options on oil, gold, and corn futures as easily as we trade options on the S&P 500® Index.

Options Levels

Power Quantum-capitalpartners is our easy-to-use platform built for trading options on stocks, indexes, and futures. It breaks down the complexities of options with sophisticated tools that add efficiency and simplicity to our analysis and trading.

Capital preservation or income

Options strategies available:

Covered positions

  • Covered calls (sell calls against stock held long)
  • Buy-writes (simultaneously buy stock and sell calll)
  • Covered call rolling (buy a call to close and sell a different call)

Income or growth

Options strategies available:

All Level 1 strategies, plus:

  • Long calls and long puts
  • Married puts (buy stock and buy put)
  • Collars
  • Long straddles and long strangles
  • Cash-secured puts (cash on deposit to buy stock if assigned)

Growth or speculation

Options strategies available:

All Level 1 and 2 strategies, plus:

  • Debit spreads and credit spreads
  • Calendar spreads and diagonal spreads (long only)
  • Butterflies and condors
  • Iron butterflies and iron condors
  • Naked puts6
*Margin approval is required for Levels 3 and 4.

Speculation

Options strategies available:

All Level 1, 2, and 3 strategies, plus:

  • Naked calls7
*Margin approval is required for Levels 3 and 4.

Learn more about options

Our knowledge section has info to get you up to speed and keep you there.

Three common mistakes options traders make

Take a look at three common mistakes options traders make: setting unrealistic price expectations, buying too little time, and buying more options than are appropriate for a given objective.

Understanding options Greeks

An understanding of “the Greeks” can be useful to any options trader. In a nutshell, options Greeks are statistical values that measure different types of risk, such as time, volatility, and price movement. Though you don’t necessarily need to use the Greeks in order to trade options, they can be very helpful in measuring and understanding certain risks