About Us Contact Us Help Search Log In Checking & Savings Investing & Retirement Mortgage Auto Personal Loans Ally Home Ally Invest Self-Directed Trading Options Trading Options Trading take a closer look at options trading. A little more knowledge goes a long way. Why Options Developing an Approach Intelligent Tools Pricing Education Start Trading Why trade options? This type of investment strategy has its advantages. Options are contracts that give the owner the right to buy or sell an asset at a fixed price, called the strike price, for a specific period of time. The “asset” may be several kinds of underlying securities. Option trading is a way for investors to leverage assets and control some of the risks associated with playing the market. You can use options to protect gains, control large chunks of stock or cut losses with a relatively small cash outlay. Opportunity to speculate using leverage. This allows for strong potential returns as you can control an investment with a relatively small amount of money. Just be careful with this power, as it can also result in significant loss if your outlook is incorrect. Flexibility with unique strategies. There’s a wide variety of option strategies that can be performed on many types of underlying securities, like stocks, Indexes and ETFs. So whether your outlook is bullish, bearish or neutral, there’s a strategy that can work in your favor if your forecast is correct. Hedging your position. If you have an existing position in an underlying security, you can use options to lock in potential gains or minimize loss should things not go as you expected. On the other hand, option trading can be complicated and risky, and some strategies may cause you to lose your entire investment or more. To help manage cost, we don’t charge a commission to close out short options that trade for less than 5 cents. Before trading options, review the Characteristics and Risks of Standardized Options brochure (PDF) for more information. Developing an approach. There's an option trading strategy for any skill level. When you invest on your own, you’re in full control of your trading decisions. It’s important to think about the effects that variables like implied volatility, the price of the security or time decay will have on your strategy. These are a few examples of option strategies provided by our in-house expert, Brian Overby, Senior Options Analyst. See all examples of options strategies Beginners Experienced Experts Covered call The setup You own the stock Sell a call, strike price A Generally, the stock price will be below strike A View covered call strategy Protective put The setup You own the stock Buy a put, strike price A Generally, the stock price will be above strike A View protective put strategy Cash-Secured put The setup Sell a put, strike price A Keep enough cash on hand to buy the stock if the put is assigned Generally, the stock price will be above strike A View cash-secured put strategy Get your head in the options game Whether you're a beginner, expert trader or somewhere in between, take the time to learn all about options and find the best strategy that fits your experience, risk tolerance and goals. View the Ally Invest Options Playbook Intelligent tools for the options investor. We'd make a good team. Our trading platform is designed to help you make more informed investing decisions from wherever you happen to be. You have everything you need to explore opportunities, gain insight, or take action whenever the mood strikes. Profit/loss graph Probability calculator Option chains Research and market data Anywhere access Profit/loss graph Crunch the numbers with our profit/loss calculator to understand more of a trade’s potential before placing it. You know a good opportunity when you see one. When you’re all about options, keeping costs low counts. COMMISSION $0 + 50¢ per contract fee How we compare This table lists commission fees and per contract fees for Ally Invest and several other competitors. 10 CONTRACTS STANDARD PRICING NO ACCOUNT MINIMUM Ally Invest $0 commission fee + 50c per contract Schwab $0 commission fee + 65c per contract TD Ameritrade $0 commission fee + 65c per contract Merrill Edge $6.95 commission fee + $0.75 per contract Fidelity $0 commissions + $0.65c per contract About our commissions View all investment choices and pricing Straight talk fees guide Learn even more about options trading. An informed trader is a smarter trader. Live Stream: Stock Play of the Day How to Avoid the Top 10 Mistakes New Option Traders Make What is implied volatility? Understanding Option Greeks and Dividends: An Introduction View all Ally Invest Education About Our Company Social Impact Careers Investor Relations Press Room Suppliers Business Solutions Corporate Finance Dealer Services Ally Ventures Ally Lending Learn Financial Life Tips & Tools Do It Right Wallet Wise Resources Contact Give Feedback ATM Locator Site Map Shop Ally Gear Terms & Privacy Ally Invest Disclosures Legal Privacy Security A FEW THINGS YOU SHOULD KNOW Ally Financial Inc. (NYSE: ALLY) is a leading digital financial services company, NMLS ID 3015 . Ally Bank, the company's direct banking subsidiary, offers an array of deposit, personal lending and mortgage products and services. Ally Bank is a Member FDIC and Equal Housing Lender , NMLS ID 181005 . Credit products and any applicable Mortgage credit and collateral are subject to approval and additional terms and conditions apply. Programs, rates and terms and conditions are subject to change at any time without notice. Ally Servicing LLC, NMLS ID 212403 is a subsidiary of Ally Financial Inc. Securities products and services are offered through Ally Invest Securities LLC, member FINRA and SIPC. View Security Disclosures Advisory products and services are offered through Ally Invest Advisors, Inc. an SEC registered investment advisor. View all Advisory disclosures Foreign exchange (Forex) products and services are offered to self-directed investors through Ally Invest Forex LLC. NFA Member (ID #0408077), who acts as an introducing broker to GAIN Capital Group, LLC ("GAIN Capital"), a registered FCM/RFED and NFA Member (ID #0339826). Forex accounts are held and maintained at GAIN Capital. Forex accounts are NOT PROTECTED by the SIPC. View all Forex disclosures Forex, options and other leveraged products involve significant risk of loss and may not be suitable for all investors. Products that are traded on margin carry a risk that you may lose more than your initial deposit Products offered by Ally Invest Advisors, Ally Invest Securities, and Ally Invest Forex are NOT FDIC INSURED, NOT BANK GUARANTEED, and MAY LOSE VALUE. App Store is a service mark of Apple Inc. Google Play is a trademark of Google Inc. Zelle and the Zelle related marks are wholly owned by Early Warning Services, LLC and are used herein under license. Ally and Do It Right are registered service marks of Ally Financial Inc. From NerdWallet. © 2017-2021 and TM, NerdWallet, Inc. All rights reserved. From Kiplinger's Personal Finance. © 2021 The Kiplinger Washington Editors. All rights reserved. Used under license. From MONEY. © 2020 Ad Practitioners, LLC. All rights reserved. Used under license. ©2009-2021 Ally Financial Inc.