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closer look

Take a closer look at options trading.

A little more knowledge goes a long way.

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 control some of the risks and manage cost, we don’t charge a commission to close out short options that trade for less than 5 cents. What to Know Before You Decide

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

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

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

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

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

Short call spread

 

The setup

  • Sell a call, strike price A
  • Buy a call, strike price B
  • Generally, the stock will be below strike A

 

View short call spread strategy

Short call spread

 

The setup

  • Sell a call, strike price A
  • Buy a call, strike price B
  • Generally, the stock will be below strike A

 

View short call spread strategy

Short put spread

 

The setup

  • Buy a put, strike price A
  • Sell a put, strike price B
  • Generally, the stock will be above strike B

 

View short put strategy

Short put spread

 

The setup

  • Buy a put, strike price A
  • Sell a put, strike price B
  • Generally, the stock will be above strike B

 

View short put strategy

Long straddle
 

The setup

  • Buy a call, strike price A
  • Buy a put, strike price A
  • Generally, the stock price will be at strike A

 

View long straddle strategy

Long straddle
 

The setup

  • Buy a call, strike price A
  • Buy a put, strike price A
  • Generally, the stock price will be at strike A

 

View long straddle strategy

Short call

 

The setup

  • Sell a call, strike price A
  • Generally, the stock price will be below strike A

 

View short call strategy

Short call

 

The setup

  • Sell a call, strike price A
  • Generally, the stock price will be below strike A

 

View short call strategy

Short put

 

The setup

  • Sell a put, strike price A
  • Generally, the stock price will be above strike A

 

View short put strategy

Short put

 

The setup

  • Sell a put, strike price A
  • Generally, the stock price will be above strike A

 

View short put strategy

Short straddle

 

The setup

  • Sell a call, strike price A
  • Sell a put, strike price A
  • Generally, the stock price will be at strike A

 

View short straddle strategy

Short straddle

 

The setup

  • Sell a call, strike price A
  • Sell a put, strike price A
  • Generally, the stock price will be at strike A

 

View short straddle 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 Credence Global Bank Invest Options Playbook

""

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 Credence Global Bank 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

Crunch the numbers with our profit/loss calculator to understand more of a trade’s potential before placing it.

Probability calculator

This tool uses implied volatility to help you determine the likelihood of hitting your targets.

Options chains

Our intuitive display makes it easy to see what’s available and place trades.

Research and market data

Get market stats, news and detailed metrics on companies you’re interested in. You can also find company quotes, charts, high/low prices, dividend dates, news, peer performance comparisons and more.

""

Anywhere access

Connect to the market from any device and make the most of any opportunity at home or on the move.

Profit/loss graph

Crunch the numbers with our profit/loss calculator to understand more of a trade’s potential before placing it.

Probability calculator

This tool uses implied volatility to help you determine the likelihood of hitting your targets.

Options chains

Our intuitive display makes it easy to see what’s available and place trades.

Research and market data

Get market stats, news and detailed metrics on companies you’re interested in. You can also find company quotes, charts, high/low prices, dividend dates, news, peer performance comparisons and more.

Anywhere access

Connect to the market from any device and make the most of any opportunity at home or on the move.

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
10 Contracts Standard Pricing No account minimum
Credence Global Bank 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.

What Is Option Trading? 8 Things to Know Before You Trade

How to Avoid the Top 10 Mistakes New Option Traders Make

What is implied volatility?

Understanding Option Greeks and Dividends: An Introduction

View all Credence Global Bank Invest Education

What Is Option Trading? 8 Things to Know Before You Trade

How to Avoid the Top 10 Mistakes New Option Traders Make

What is implied volatility?

Understanding Option Greeks and Dividends: An Introduction

View all Credence Global Bank Invest Education

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Options Trading

Options involve risk and are not suitable for all investors. Options investors may lose the entire amount of their investment in a relatively short period of time.

 

Prior to buying or selling options, investors must read the Characteristics and Risks of Standardized Options brochure (17.8 MB PDF), also known as the options disclosure document. It explains in more detail the characteristics and risks of exchange traded options.

November 2012 Supplement (PDF)

 

October 2018 Supplement (PDF)

 

You can also request a printed version by calling us at 1-630-413-3309.

About Our Commissions

Commissions and fees from published websites are current as of 10/09/2019. Some brokers may offer more competitive fees than the ones published if certain balances or levels of activity are met. You should contact your broker to confirm their commission schedule.

 

Pricing information

We offer competitive pricing of $0 per equity trade and 50¢ per options contract for all investors. We charge an additional 35¢ per contract on certain option index products where the exchanges charge a fee.

 

Low-Priced Securities Pricing 

We require a minimum opening purchase order of $100 per order in OTCBB and Pink Sheet stocks, and add 1¢ per share on the entire order for stocks priced less than $2. We don’t accept opening trades for stocks below 1¢ per share. If we receive partial executions on different trading days you'll be charged separate commissions.

 

Note for GTC orders: If we receive partial executions on different trading days, you'll be charged separate commissions.

 

Commissions for Mutual Funds

  • Load

    Purchases: $0 (subject to change from mutual fund)

    Sale: (subject to change from mutual fund)

  • No Load

    Purchases: $9.95

    Sale: $9.95

Commissions for Bonds and CDs

  • Bonds

    $1.00 per bond ($10.00 minimum, $250.00 maximum) per transaction

  • Treasuries

    $1.00 per bond ($10.00 minimum, $250.00 maximum) per transaction

  • Certificates of Deposit (CDs)

    $24.95 per transaction

Credence Global Bank Invest may act as principal on any fixed-income transaction. When acting as principal, we will add a markup to any purchase, and subtract a markdown from every sale. This markup or markdown will be included in the price quoted to you and you will not be charged any commission or transaction fee for a principal trade.

Straight Talk Fees Guide

With any investing approach, high expenses can have a big impact on your returns. That's why we have affordable, competitive fees and low commissions that won't get in the way of your financial goals.

Regulatory Fees

  • SEC

    $0.0218 per $1,000 principal (sells only)

  • ORF (Options Regulatory Fee)

    $0.0381 per contract (buys and sells)

  • TAF (Trading Activity Fee)

    $0.000119 per share (equity sells)

  • TAF (Trading Activity Fee)

    $0.002 per contract (option sells only)

Financial Industry Regulatory Authority (FINRA) transaction fee (TAF) This fee is charged on all stock and ETF sales at a rate of $.000119 per share with a minimum charge of $0.01 and a maximum charge of $5.95. This fee is rounded up to the nearest penny. Bonds are also subject to a TAF fee and can be charged up to $0.75 per bond traded, regardless of the bond's par value.

Credit Interest

Cash balances do not currently earn interest. You may request that your account be enrolled in an interest-bearing Federal Deposit Insurance Corporation (FDIC) insured deposit sweep program. See current yield and additional information

Individual Retirement

  • IRA Annual Fee

    None

  • IRA Transfer Fee

    $50.00

  • IRA Closure Fee

    IRA closure fee is charged for full IRA distributions and full ongoing account transfers.

    $25.00

Service Fees

  • ACAT Transfer Out

    $50.00

  • Partial ACAT Transfer Out

    $50.00

  • Outgoing Domestic Wire Transfer

    $30.00

  • Overnight Delivery

    $50.00

  • Check Withdrawal

    $5.00

  • Check Stop Payment

    $30.00

  • Returned Checks

    $30.00 Plus interest for any trades from the earlier of the settlement date or date of deposit

  • Returned ACH

    $30.00

  • Returned Wires

    Applies to attempted third-party wires

    $30.00

  • Pre Pay Settlement Fee

    $20.00

  • Stock Certificate Deposit DTC Rejection Fees

    $175.00

  • Stock Certificate Deposit Processing Fee

    Commission on stock certificate deposited into Credence Global Bank Invest will be equal to 5% of the principal amount of the trade. Stock Certificates cannot be used to fund a new account.

    $300.00 per certificate

  • Non-transferable security charge per position.

    $20.00 per month

  • Vault Fee

    Restricted certificates held for missing paperwork, certificates for securities that are not DTC eligible, etc.

    $60.00 per year charged monthly

  • Outgoing DTC

    Electronic delivery of individual certificates via Depository Trust Company

    $25.00 per position

  • DWAC Transfer Fee Per Position

    $50.00 + Any transfer agent fees up to $150.00

  • DRS Transfer Fee Per Position

    $115.00 per position

  • Paper Statements

    $4.00 per account statement

  • Phone Assisted Orders

    $20.00 + regular commission

  • Limited Trading Authorization (LTA) paper statement fee

    Required for all accounts that have LTA

    $4.00 per account statement

  • Paper Confirmations

    $2.00

  • 1099 Request for Exempt Accounts

    $50.00

  • Tax document requests by fax and regular mail

    $50.00

  • Option Exercise

    $9.95

  • Option Assignment

    $4.95

  • Option Position Management

    $100.00 + regular commission

  • Option Expiration Sellouts

    $40.00 + regular commission

  • Margin Sellouts

    $40.00 + regular commission

  • Restricted Accounts, and Broker-Assisted Trades

    $20.00 + regular commission

  • Short Stock

    Loan charges on hard to borrow stock.

    Daily charge at cost

  • Worthless Securities Processing

    $30.00 Other fees may apply

  • Reg T Extension

    $10.00 + interest to settlement date

  • Foreign Stock Transaction Fee (not ADRs)

    $50.00 + regular commission

  • Foreign Stock Incoming Transfer Fee

    $50.00 per position

  • ADR and other foreign stock semi-annual charges

    At cost

  • Voluntary Reorganization

    $50.00

  • Entity Account Opening Fee

    None

  • Entity Account Annual Fee

    None

  • Index Products

    Credence Global Bank Invest charges this additional per contract cost on certain index products where the exchange charges fees. See a full list of index options that incur additional fees.

    $0.35 per contract

  • Penny Stocks

    For stocks priced less than $2.00, there’s an additional penny per share charge and the maximum commission per order generally doesn’t exceed 5% of the trade value.

    $0.01 per share

  • OTCBB and Pink Sheet Stocks

    Minimum investment of $100 per trade

  • Unit Investment Trust

    Purchase: $0 (Subject to charges from the UIT), Sale: $9.95

Other Transfer Agent and Trade Settlement charges for certain securities may be passed through to you by our clearing firm.