Trading Products

Invest in
Options.

Options give you the right - but not the obligation - to buy or sell an asset at a specified price before an expiry date. Implement strategies whether markets are rising, falling, or moving sideways.

Understanding Options

What are options?

An option is a contract that represents the right to buy or sell a financial product at an agreed-upon price for a specific period of time. You can typically buy and sell an options contract at any time before expiration.

Options are available on numerous financial products, including equities, indices, and ETFs. Options are called derivatives because the value of the option is derived from the underlying asset.

Owning an option does not impart ownership in the underlying security, nor does it entitle the holder to any dividend payments. Whether you are bullish, bearish, or neutral, incorporating options into your strategy gives you the ability to implement additional strategies beyond simple buying and selling.

Why trade options?

  • Buying the right to purchase a stock at a specified price
  • Getting paid to potentially purchase a stock at a discount
  • Protecting a stock in your portfolio from a substantial price decline
  • Generating income on existing stocks in your portfolio

Contract Types

Call options and put options

Call Options

A call option gives the contract holder the right to BUY the underlying stock at a specified strike price by the expiration date. Calls are typically purchased when you expect that the price of the underlying stock may go up. Your maximum loss is limited to the premium paid.

Put Options

A put option gives the contract holder the right to SELL the underlying stock at a specified strike price by the expiration date. Puts are typically bought when you expect that the price of the underlying stock may go down. Puts are also used as portfolio insurance against existing positions.

Strategies

Common options strategies

Objective Outlook Strategy Description
Income generation Neutral to bullish Covered Call Sell a call against an existing stock position to generate premium income.
Income generation Neutral to bullish Cash-Secured Put Sell a put secured by cash, potentially purchasing stock at a discount.
Hedging Neutral to bearish Protective Put Buy a put on an existing stock position to limit downside risk.
Speculation Either direction Straddle Buy a call and a put at the same strike - profit if the price moves significantly in either direction.
Speculation Either direction Debit Spread Buy and sell calls (or puts) at different strikes to limit cost while maintaining directional exposure.

Why Ledgeworth Capital

Trade options with institutional-grade support

Robust tools and platforms

Plan and execute options strategies across web, mobile, and desktop. Real-time pricing, Greeks analysis, and multi-leg order entry in one integrated platform.

Support from options specialists

Get real-time trade analysis and focused support from options professionals during trading hours. Our team understands the complexity of options strategies.

Education and expert commentary

Access education resources from articles to videos and live webcasts that help you understand the basics and advanced techniques of trading options.

Ready to start trading options?

Open an account and access calls, puts, and multi-leg strategies across commodities and equities.