Beginner’s tutorial on how to place your first options trade using Fidelity or most other brokerages. Also includes tips on basic option trading terminology and definitions.
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#fidelityoptionstutorial
#howtotradeoptions…(read more)
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As an options trader, getting the right broker and platform makes a big difference to your trading experience. Fidelity provides a robust trading platform that allows traders to trade options with ease. Here is a step-by-step guide on how to trade options on Fidelity.
1. Open a Fidelity account
Before you start trading options, you need to open a brokerage account with Fidelity. It is a simple and straightforward process that takes less than 10 minutes. You will need to provide some personal information, such as your name, address, and social security number, to open an account.
2. Apply for options trading
Now that you have a Fidelity account, you need to apply to trade options. You can do this by logging into your Fidelity account and clicking on the ‘Accounts & Trade’ tab. Then, select ‘Trade Options’ and click on the ‘Open New Account’ button. Next, choose the type of account you want to open, such as an individual or joint account, and complete the application process.
3. How to place an options trade
Once your options trading account is approved, it’s time to start trading. To place an options trade, log in to your Fidelity account, and select the ‘Trade’ tab. Then, select ‘Options’ and enter the details of the trade, such as the contract symbol, expiration date, strike price, and quantity. You can also select your preferred order type, such as limit or market order.
4. Trading tools and resources
Fidelity offers a wide range of trading tools and resources that can help you make informed trading decisions. The ‘TradeArmor’ tool, for instance, allows you to visualize potential profit and loss scenarios, while the ‘Probability Calculator’ helps you assess the likelihood of an option trade reaching a profit target.
5. Commissions and fees
Like most brokers, Fidelity charges commissions for options trades. The commission rate varies depending on the size of the contract and the type of trade. For instance, the commission for an equity option trade is $0.65 per contract, while the commission for a multi-leg options trade is $0.50 per contract.
6. Managing your options trades
As an options trader, you will need to manage your trades to minimize losses and maximize profits. Fidelity provides a range of tools and features to help you manage your options trades, such as the ‘Options Analysis’ tool and the ‘Strategy Evaluator’ tool. Moreover, Fidelity allows traders to place stop orders, limit orders, and other automated orders to help manage risk.
In conclusion, Fidelity offers a robust options trading platform with a range of tools and resources to help traders make informed trading decisions. Whether you’re a beginner or an experienced trader, Fidelity provides a user-friendly trading platform that can help you trade options with confidence.
Please help me understand, so when you just bought that put, what is the real amount of money you would have lost if the contract expired? It seems to me that it would have been about $27,400, is that correct?
And the $8.90, what is that? Is that the cost or commission to place a trade? I thought trading on Fidelity was commission free, is that not true??
and how do you determine when you would sell your option, like how much do you normally want to make before you would sell?
so do people normally have to have a lot of money to trade options???? I mean with less than a thousand dollars in your account, is it possible for you to truly trade in options? If not could you give an example of an option trade that you would make in reality?
Is there any way to do options on a fractional share of a high priced stock like AMZN?
If you would be so kind as to answer these questions for me I would so appreciate it. 🙂
1:55 Entering a long put means you have the right to SELL the security when it reaches the strike price.
where have you been my entire trading life? i just got into options though so it hasnt been that long. ive always been scared of them so i never even wanted to trade options but im getting enough capital that i can play around frugally without a loss being so crushing. thanks for this. youre a good teacher.
Do you have a video going over what calls and puts our 3 minutes and 23 seconds into the video and I’m very confused I am a beginner you’re going extremely too fast I don’t know what option trading is I got approved for a tier 1 with Fidelity and I’m very confused on watching your video everyone else on YouTube who is explaining this concept is showing step-by-step on different platforms outside of Fidelity you popped up as one of the top videos far as the tutorial is concerned step-by-step with Fidelity but it’s very confusing for a person who is just getting into trading stocks you’re using times that I have no idea and I keep having to pause the video and Google search what these terms mean do you have a simpler video in Laymans terms explaining what each option is that you’re selecting and what does it mean Like idiot proof basically lol something that a five-year-old can do I am making money but I want to take it over the top and that’s why I’m trying to get into option trading but you’re not making it easy your video has me more confused than I initially was before I watch the video
Great video. We all strive for financial independence and better life. It’s not difficult in achieving this through the right investment, living frugally, and budgeting. I’m glad I learned early in life to work hard for financial freedom
Is there a feature/choice where Fidelity will sell the call or put if it goes in the money by the expiration date? Kind of like putting an auto pilot on the trade? Or do you have to go in and sell each contract before it expires?
Who & what determines what type of an account fidelity will let you trade in? (Some are saying they have limited trading excess) is it based on credit ratings or the amount of money ur opening ur account with? What’s the determining factor?
If this was a call and I purchased it for $352, then the price of the security goes up to where now the contract is worth $360 can I sale the contract without ever owning the stock? It doesn't sound right because if the security continues to go up who will the person purchase the 100 shares from?
So I am trying to apply for Fidelity and I want to buy call options. My intent is to be able to just sell the contract if the option goes in the money and not exercise the contract. What are the steps to after buying to open just selling the contract after it is in the money to just collect the premium?
Great tutorial thank you
For covered call, if I have 200 shares, can we select which shares to sell for a call option?
Where are the Greeks?
How to do a stop loss order for option using fidelity? Thanks a lot
this is probably a dumb question, but can we sell the contract before the expiration date. Example: stock xyz last price is $5. I buy a contract that says the price will go to $10. Now lets say the stock price rises to $7 on the same day of the my purchase, could i sell the contract on the same day? or is there some kind of w8 period ?
I want to buy your channel! Shoot me an email, and we can work out the details.
Hopefully you can see my questions, I have Roth IRS account. I buy Hexo first time is no problem. However, now the price down, I want buy more but I couldn’t. It give me a note that I have to go to Net benefits…..but I don’t have that account . Can you please help me, I don’t want to create too much benefits like that…do we have a different way to do?? Thanks a lot.
Hi.
I have problem to see de Option Chain setting in my Fidelity account.
How I can resolve that ?
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SPY was at 274 last year???
Very sad not, see app like robinhood, fidelity in the UK. The UK finance school are too over valued. Full of scam
I keep hearing this 'if the option doesn't reach strike price it will expire worthless.' This is only if you want to exercise the option, you can still sell the contract back to the market if the prices increases.
how do I do a Put Option if I do not already own the security?
What does high option agreement mean? Does it mean i dont have enough money in the account to buy the option?
in your example sell put option (spy)how do you close it or sell once you see you have profit already before expiration?hope i:m making sense with my questions.
noob one here. is a call, in a way, a determination the price of stock will increase by said date. and a put decrease? like for me, I have applied, awaiting approval, and was thinking of making a "call" that price will increase, to $*.**, by **/**/*** date. Is that correct hypothetically? If so, say stock price then aligns with contract more less or even goes beyond, would the play then be to theoretically sell contract? Thanks also. Apologies if this has been asked or i am way off mark.
Why is the last price so low compared to the current price?
Thanks for the vid, I have a question: How do you view the greeks before purchasing a contract? I'm new to Fidelity Trader.
Do you have to own 100 shares of the stock you are placing a call or put?
Great info and subscribed.
Any video on how to do debit call spread on fidelity please?
Bro, why did you leave out the profit part? Isn’t that the most important? You’re confusing people if you don’t tell us how you either make a profit, or just lose the money.
In the action colum I can’t choose the buy to open, what i need to do
Hi, can you tell me how i would do a straddle option? Do I place two separate trades (one call and one put) or is there a way to do it in one step?
Trying to learn how to buy and sell options. Here's my problem: The only choices shown are BUY to close and SELL to open. Why can't I BUY to Open? Does anyone know? Thanks
Question with fidelity its 65 cents to trade a option, so if selling a call contract is that 65 cents times 100 ? 65$
GOD thanks man
1:50 incorrect. LONG PUT is right to SELL, not right to BUY.
do you know if you're allowed to trade options in an IRS (roth/traditional/rollover)?
This makes it super clear and simple! Thanks!
How can I see the greeks?
So what do you do if the price on your put option got way lower than your desired price? What happens next @Finance Guy
does it need to be cash only or i can use margin?
Thank you! This was so helpful
Great video for people transferring from RH to Fidelity! Do you know how to view the Greeks for any given option on Fidelity?