How to trade options fidelity
With the ability to leverage and hedge, options can help limit risk while offering unlimited profit potential. Open a Brokerage Account. 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. Visit our Learning Center to learn more with our introduction to options video. Options trading entails significant risk and is not appropriate for all investors. Certain complex options strategies carry additional risk.
Before trading options, please read Characteristics and Risks of Standardized Options. Supporting documentation for any claims, if applicable, will be furnished upon request. There are additional costs associated with option strategies that call for multiple purchases and sales of options, such as spreads, straddles, and collars, as compared with a single option trade. Skip to Main Content. See all account types. As with any search engine, we ask that you not input personal or account information.
Information that you input is not stored or reviewed for any purpose other than to provide search results. Responses provided by the virtual assistant are to help you navigate Fidelity. Fidelity does not guarantee accuracy of results or suitability of information provided. Keep in mind that investing involves risk. The value of your investment will fluctuate over time, and you may gain or lose money.
Fidelity does not provide legal or tax advice, and the information provided is general in nature and should not be considered legal or tax advice.
Consult an attorney, tax professional, or other advisor regarding your specific legal or tax situation. Skip to Main Content. Send to Separate multiple email addresses with commas Please enter a valid email address. Your email address Please enter a valid email address. Best-in-class strategy and support Whether you are new to options or an experienced trader, Fidelity has the tools, expertise, and educational support to help improve your options trading.
Support and education Be the first to know: Powerful tools for idea generation Our independent research and insights help you scan the markets for opportunities. How to start trading options With the ability to leverage and hedge, options can help limit risk, while offering unlimited profit potential.
Ready to get started? Apply to Trade Options. Trades are limited to online domestic equities and options and must be used within two years. Options trades are limited to 20 contracts per trade.
Offer valid for new and existing Fidelity customers opening or adding net new assets to an eligible Fidelity IRA or brokerage account. Fidelity reserves the right to modify these terms and conditions or terminate this offer at any time. Other terms and conditions, or eligibility criteria may apply.
Research is provided for informational purposes only, does not constitute advice or guidance, nor is it an endorsement or recommendation for any particular security or trading strategy. Research is provided by independent companies not affiliated with Fidelity. Please determine which security, product, or service is right for you based on your investment objectives, risk tolerance, and financial situation.
Be sure to review your decisions periodically to make sure they are still consistent with your goals.
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