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Tips of the Trade
Trading Options with OptionsFirst
By Brian Bachelier, Options Trading Platform Analyst
OptionsFirst opens the door to advanced options trading capabilities at Scottrade. Customers who are prepared for more sophisticated options strategies such as spreads and uncovered options now have a new trading tool specifically catering to their trading needs.
Basic options trading is available to Scottrade customers through the Scottrade Trading Site, Scottrader Streaming Quotes and ScottradeELITE, but OptionsFirst allows customers to take their options trading to the next level. Keep in mind, options trading involves significant risk, and it may not be appropriate for all investors.
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Scottrade |
OptionsFirst |
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Buy/Sell Stocks & ETFs |
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Buy/Sell Mutual Funds, CDs & Bonds |
X |
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Sell Covered Calls |
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X |
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Purchase Options |
X |
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Sell Cash-Secured Puts |
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X |
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Trade Spreads |
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X |
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Sell Uncovered Options |
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X |
Why A Separate Tool?
Why didn't Scottrade just add more advanced option trading choices to its existing trading tools? Our current computer systems are not designed to handle the complexities of certain options strategies and the necessary pairing of positions to optimize margin. Patching together a fix for the current system wouldn't provide the top-of-the-line trading experience Scottrade customers expect.
Instead, we worked with floor traders from the Chicago Board Options Exchange (CBOE) to build a new, sophisticated system designed especially for the complexities of advanced options trading.
What Does It Offer?
Advanced options traders will find a variety of tools and resources to help them make informed trading decisions, all with easy-to-use OptionsFirst.
Intuitive Navigation
Four tabs give you everything you need: Account Info; Customizable Options Chain; Research and Charts; Powerful Trading Tools. Make trades with one click - anywhere on the site. We also put all of the most important details (account balance, buying power, margin and cash balance) right on top, with your current positions and pending orders laid out below.
Risk Viewer
Risk Viewer can help you better understand and estimate the potential risk in your portfolio. Risk Viewer is a powerful tool that analyzes the positions you hold to provide information related to:
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Profit and Loss
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Greeks (theoretical risk metrics)
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Market Risk (a measure of changes in theoretical value based on potential market moves)
With Risk Viewer, you can also group and analyze your positions by industry, expiration or symbol.
Hot List
View unusually active options and industries. Our Hot List scans the market for unusually high options trading volume relative to that particular underlying. Clicking on a symbol automatically loads its option chain to help you identify which options are the most active.
Customizable Option Chains
OptionsFirst offers you a comprehensive option chain with all the information you need, including current option strike prices, expiration dates, bid and ask prices for calls and puts, price changes and open interest.
Maxit Tax Calculator
Maxit provides real-time, cost basis and tax-based investment decision support. Maxit delivers a full range of tools designed to help you track capital gains.
Advanced Orders
The Advanced Order Ticket enables you to put conditions on an order so that it can be sent to the market when the time or condition is right for you. Set a trailing stop order that will adjust as the price of the underlying moves, or set a specific trigger to enter your order when your conditions are met.
Probability Calculator
Estimate your probability for success before you place your trade! Choose your underlying security and price targets, and adjust variables such as volatility, dividends and interest rates. The Probability Calculator shows you the probability of finishing above, below or between your target prices. You can calculate your high and low price targets based on underlying price moves of one, two or three standard deviations.
Profit & Loss Calculator
The P & L Calculator offers an educational analysis of complex option strategies. Calculate the theoretical return on your investment by adjusting the strike price, days to expiration and the price of the underlying. Chart results in an easy-to-read, interactive line graph.
Virtual Trading
Test your strategies in real-time using the Virtual Trading tool. Learn about options trading before entering the market. Trade, watch and test your virtual investments in real-time and fine-tune your strategies.
Get to Know OptionsFirst
Launched in July 2008, OptionsFirst is a rapidly growing part of the Scottrade family dedicated to serving you. If you're interested in opening an account with OptionsFirst, please contact us at 877-223-3344 or optionsfirst@scottrade.com.
Options involve risk and are not appropriate for all investors. Detailed information about the risks associated with options can be found in the Scottrade OptionsFirst Options Application and Agreement, Brokerage Account Agreement or by downloading the Characteristics and Risks of Standardized Options and Supplements (PDF) from The Options Clearing Corporation, or by requesting a copy from your local branch office.
Margin trading involves interest charges and risks, including the potential to lose more than deposited or the need to deposit additional collateral in a falling market. Scottrade's OptionsFirst Margin Disclosure Statement and Agreement (PDF) are available for download, or at your local branch office, and contains information on our lending policies, interest charges, and the risks associated with margin accounts.
Any specific securities, or types of securities, shown are for demonstrative purposes only and should not be considered investment advice. Scottrade OptionsFirst™ does not provide tax advice. The material provided on this site is for informational purposes only. Please consult your tax or legal advisor(s) for questions concerning your personal tax or financial situation. Projections or other information regarding the likelihood of various investment outcomes are hypothetical in nature and are not guarantees of future results. Any examples used that discuss trading profits or losses may not take into account trading commissions or fees.
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| Trading Web Site | 12/19/09 |
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Any specific securities, or types of securities, used as examples are for demonstration purposes only. No information on this Web site should be considered a recommendation or None of the information provided should be considered a recommendation or solicitation to invest in, or liquidate, a particular security or type of security.
Investors should consider the investment objectives, risks, and charges and expenses of a mutual fund carefully before investing. A mutual fund's prospectus contains this and other information about the mutual fund. Prospectuses are available through our trading site or through a Scottrade branch office. The prospectus should be read carefully before investing. No transaction fee (NTF) funds are subject to the terms and conditions of the NTF funds program. Scottrade is compensated by the funds participating in the NTF program through recordkeeping, shareholder, or SEC 12b-1 fees.
Investors should consider the investment objectives, charges, expense, and unique risk profile of an Exchange Traded Fund (ETF) carefully before investing. Leveraged and Inverse ETFs may not be suitable for long-term investors and may increase exposure to volatility through the use of leverage, short sales of securities, derivatives and other complex investment strategies. A prospectus contains this and other information about the ETF and should be obtained from the issuer. The prospectus should be read carefully before investing.
Margin trading involves interest charges and risks, including the potential to lose more than deposited, or the need to deposit additional collateral in a falling market. Margin Disclosure Statement (PDF) is available for download, or it is available at one of our branch offices. It contains information on our lending policies, interest charges, and the risks associated with margin accounts.
Options involve risk and are not appropriate for all investors. Detailed information about the risks associated with options can be found in the Scottrade Options Application and Agreement, Brokerage Account Agreement, or by downloading the Characteristics and Risks of Standardized Options and Supplements (PDF) from The Options Clearing Corporation, or by requesting a copy from your local branch office. Supporting documentation for any claims will be supplied upon request.
Market volatility, volume, and system availability may impact account access and trade execution.
Testimonials may not be representative of the experience of other clients and are no guarantee of future performance or success.