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How to exercise your stock options

Transcript of the video:

"Exercise stock options" transcript

Schwab brand music plays.

Onscreen text: Charles Schwab

Announcer [offscreen]: Maybe you'd like to exercise your stock options—or maybe you’re just thinking about it.

Onscreen text: How to exercise your stock options.

Announcer [offscreen]: Here's how to do it online when the time comes.

First, you might want to get a handle on what you have.

Onscreen: A sample Equity Awards account on Schwab.com appears. 

Announcer [offscreen]: Once you've logged in to your account and clicked on the Equity Awards tab, you can use our award calculators to model different outcomes before you pull any triggers. 

Onscreen: Screen zooms in closer. "Equity Awards" from the navigation menu is highlighted. Then "Award Calculators" is highlighted.

Announcer [offscreen]: If you just want to look over your options, select the Stock Options link under Equity Today. 

Onscreen: "Stock Options" is highlighted under the Exercisable Awards section.

Announcer [offscreen]: Remember—you may have both vested and unvested options.

Onscreen: Screen switches to reveal a sample of specific Stock Options in the account.

Announcer [offscreen]: You can find details related to your stock option grant here. 

Onscreen: An arrow is highlighted and selected. Details of a sample Stock Option are revealed, including Award ID and Vesting Schedule.

Announcer [offscreen]: Click the gray "Exercise" button in the upper-right corner of the screen.

Onscreen: Screen scrolls to the right and the "Exercise" button in the top right of the screen is highlighted.

Announcer [offscreen]: To place your order, first choose the stock symbol for the options you wish to exercise.

Onscreen: The word "Trade" from the navigation menu is selected. The screen switches to the Trade screen.

The word "All-in-One" from the navigation menu is highlighted and the account selected is "Equity Award Center." The screen zooms in under the first step titled "1. Enter Order" and highlights the first field that information is needed. It is labeled "Symbol." A sample symbol is selected. 

Announcer [offscreen]: Next, choose your strategy. In this case, you'll want Exercise Options. 

Onscreen: The next menu item labeled "Strategy" with a drop-down menu is highlighted. The selection "Exercise Options" from that drop-down menu is selected.

Announcer [offscreen]: Then select the exercise type. 

Onscreen: The next menu item labeled "Exercise Type" with a drop-down menu is highlighted. 

Announcer [offscreen]: You can choose from Sell, Hold, or Sell & Hold if you want to do a combination of the two. 

Onscreen: The drop-down menu under “Exercise Type” reveals three choices: Sell, Hold, and Sell & Hold.

Announcer [offscreen]: The choice you make needs to match what you want to have happen. For example, if you want to keep—or hold onto—your shares, you'll choose Hold.

Onscreen: The word "Hold" is highlighted in the drop-down menu. The screen then zooms out and sample "Non-Qualified Stock Options" award details populate onscreen.

Announcer [offscreen]: Now enter the number of options you want to exercise.

Onscreen: The number "10" is entered into the "Shares to Sell" field for one of the sample awards.

Announcer [offscreen]: You can exercise options from multiple awards at the same time.

Onscreen: The list of sample awards are individually highlighted.

Announcer [offscreen]: There are some important things to keep in mind here:  

Onscreen: An alert notification appears that says “Exercising your stock options can have tax implications.”

Announcer [offscreen]: First, exercising your stock options can have tax implications—so we always encourage you to consult with your tax advisor.

Second, always be sure you're following your company's policy for placing transactions, including open trading windows and blackout periods.

Now that that's covered, let's move on.

You can choose to place a market order or a limit order. 

Onscreen: Screen zooms in to bottom-left corner. The drop-down menu under the title "Order Type" is highlighted.

Announcer [offscreen]: Here's what that means: A market order will execute at the price of the stock when the order is received.

Onscreen: The category "Market" is highlighted from the drop-down menu.

Announcer [offscreen]: A limit order specifies the minimum price the stock will be sold for. The stock price has to meet that price for your order to be executed.

Onscreen: The category "Limit Order" is highlighted from the drop-down menu.

Announcer [offscreen]: If you're placing a limit order, select the timing of your order—Day Only or Good Until Canceled.

Onscreen: The "Limit Price" field is filled in with the sample number "$10.00." Then the "Timing" field is highlighted. "Day Only" and "Good Until Canceled" are highlighted from the drop-down menu.

Announcer [offscreen]: Good Until Canceled orders remain in the system for 60 calendar days. After 60 days, if the order hasn't executed, it expires. It's up to you to cancel the order if your company trading window closes during this time, so keep an eye on it.

Onscreen: An alert notification appears that says "It is your responsibility to cancel the order if your company trading window closes."

Announcer [offscreen]: Once you've entered all the details for your exercise, click the green "Review Order" button.

Onscreen: The "Review Order" button is highlighted.

Announcer [offscreen]: Now, you'll verify your order. Confirm the instructions you entered, review order messages, and make any changes you need. 

Onscreen: The second step titled "2. Verify Order" under "All-in-One" from the navigation menu is highlighted. 

Announcer [offscreen]: To edit your order, click the "Change" button. 

Onscreen: The screen scrolls down and the "Change" button is highlighted.

Announcer [offscreen]: If everything looks good, click the "Place Order" button.

Onscreen: The "Place Order" button is highlighted.

Announcer [offscreen]: You'll get a confirmation number when your order has been placed. 

Onscreen: The third step titled "3. Order Received" under "All-in-One" from the navigation menu is highlighted. The screen changes to reveal a confirmation of the sample trade order that was placed.

Announcer [offscreen]: To check the progress of your order, select the "Order Status" screen.

Onscreen: The "Order Status" button is highlighted.

Announcer [offscreen]: Your order will appear here. If the order has filled, it will say "Closed – Awaiting Settlement."

Onscreen: The screen changes to reveal information under the "All Orders" tab of "Equity Award Center." The sample trade order that was placed in the previous screen appears here and is labeled "OPEN."

Announcer [offscreen]: Otherwise, it will show "Open" until it fills.

Onscreen: The word "OPEN" is highlighted.

Announcer [offscreen]: And that's how you exercise your stock options.

Onscreen text: Happy exercising. For assistance call 1-800-654-2593.

Announcer [offscreen]: We're betting you have plans for this money. If you have any questions about how to make those plans happen, give us a call. It's what we're here for. 

Schwab brand audio clip plays.

Onscreen text: Charles Schwab Own your tomorrow.

Onscreen text: BROKERAGE PRODUCTS: NOT FDIC-INSURED • NO BANK GUARANTEE • MAY LOSE VALUE

This information is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, Schwab recommends consultation with a qualified tax advisor, CPA, financial planner, or investment manager. Charles Schwab & Co., Inc. and Charles Schwab Bank are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation. Brokerage products are offered by Charles Schwab & Co., Inc., Member SIPC. Deposit and lending products and services are offered by Charles Schwab Bank, Member FDIC and an Equal Housing Lender. Schwab Stock Plan Services provides equity compensation plan services and other financial services to corporations and employees through Charles Schwab & Co., Inc. ("Schwab"). Schwab, a registered broker-dealer, offers brokerage and custody services to its customers. ©2020 Charles Schwab & Co., Inc. All rights reserved. Member SIPC.  CC2738579 (0719-97RF) (09/19)

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Options Trading: Trade and Probability Calculator

The Trade & Probability Calculator provides calculations that are hypothetical in nature and do not reflect actual investment results, or guarantee future results. The calculations do not consider commissions or other costs, and do not consider other positions in your account(s) for which this specific trade is taking place. Rather, these values are based solely on the individual contract or pair of contracts in this specific trade. In addition, the calculations do not consider the specific date of dividend, early assignment, and other risks associated with option trading. Options which expire before the estimated dates have calculated values based on underlying prices as of the estimated dates, as if option is expiring on the estimated date. Investment decisions should not be made based solely upon values generated by the Trade & Probability Calculator

Options carry a high level of risk and are not suitable for all investors. Certain requirements must be met to trade options through Schwab. Please read the Options Disclosure Document titled " Characteristics and Risks of Standardized Options " before considering any option transaction. Call Schwab at 1-800-435-4000 for a current copy.

Securities, ticker symbols, market data and corporate information depict dated information and are shown for informational purposes only.

Option Approval Levels

The Option approval level dictates what types of strategies you can employ in your Schwab account. In order to see the trading level your account is approved for look in the header of the Account Details window.

If you decide that you would like to apply to upgrade your option trading level, please complete a new Option Trading Application. Schwab will evaluate your application and send a confirmation of the option trading strategy approved for your account.

Options carry a high level of risk and are not suitable for all investors. Certain requirements must be met to trade options through Schwab. Multiple leg options strategies will involve multiple commissions. Please read the options disclosure document titled " Characteristics and Risks of Standardized Options ." Member SIPC

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Learn about options trading, from how to place your first options trade to more advanced topics.

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Important Disclosures

The information provided here is for general informational purposes only and is not intended to be a substitute for specific individualized tax, legal or investment planning advice. Where specific advice is necessary or appropriate, consult with a qualified tax advisor, CPA, financial planner or investment manager.

Investing involves risk, including loss of principal.

Options carry a high level of risk and are not suitable for all investors. Certain requirements must be met to trade options through Schwab. Investing involves risks, including loss of principal. Hedging and protective strategies generally involve additional costs and do not assure a profit or guarantee against loss. With long options, investors may lose 100% of funds invested. Covered calls provide downside protection only to the extent of the premium received. Please read the options disclosure document titled " Characteristics and Risks of Standardized Options ." Supporting documentation for any claims or statistical information is available upon request.

Options Trading: Basics of a Covered Call Strategy

Choosing and implementing an options strategy like the covered call can be similar to driving a car. There are a lot of moving parts, but once you're familiar with the characteristics, you can steer toward your objective. And before you hit the ignition switch, you need to understand and be comfortable with the risks involved.

What draws investors to the covered call options strategy? A covered call gives someone else the right to purchase stock shares you already own (hence "covered") at a specified price (strike price) and at any time on or before a specified date (expiration date). Covered calls can potentially earn income on stocks you already own. Of course, there's no free lunch; your stock could be called away at any time during the life of the option. But selling (or "writing") covered calls has many other potential uses that many investors may not fully realize.

So, let's pop the hood and look at three features of this basic options strategy: selling stock, collecting dividends, and potentially limiting taxes.

Exit a long position

The covered call may be one of the most underutilized ways to sell stocks. If you already plan to sell at a target price you might consider trying to collect some additional income in the process.

Here's how it works. Let's say XYZ stock is trading at $23 per share, and you want to sell your 100 shares at $25 per share. Sure, you could probably sell your XYZ shares right now for $23 per share in your brokerage account, but you could also sell (write) a covered call with your target price (strike price) of $25 per share.

Take a look at the covered call risk profile in the chart below.

If you sell the call, you'll receive cash (premium), which is immediately deposited into your account (minus transaction costs). The cash is yours to keep no matter what happens to the underlying shares. If XYZ rises above $25 at any time until the option expires, you'll likely be assigned on your short option, and your shares of XYZ will be called away from you at the strike price. In fact, that move may fit right into your plan. You received a premium for selling the call, and you made an additional two points (from $23 to $25) on the stock.

As desired, the stock was sold at your target price (i.e., called away from you) at $25. If the stock goes higher than $25, you made what you wanted, but not a penny more. After all, you agreed to sell XYZ at $25. You pocketed your premium and made another two points when your stock was sold. But you won't participate in any stock appreciation above the strike price. Also, keep in mind that transaction costs (commissions, contract fees, and options assignment fees) will reduce your gains.

Covered call risk profile

On the other hand : Even though you'd like to sell XYZ at $25, it's possible that the stock price could fall from $23 to $20, or perhaps even lower. In this case, you'd keep the premium you received and still own the stock on the expiration date. But instead of the two points you hoped to gain, you're now looking at a potential loss (depending on the price at which you originally bought XYZ). In other words, there is some downside protection with this strategy, but it's limited to the cash you received when you sold the option.

Hint : Many option traders spend a lot of time analyzing underlying stocks in an effort to avoid unwanted surprises. They use their research to try to improve the odds of choosing stocks that won't suffer a serious, unexpected price decline. But keep in mind, no matter how much research you do, surprises are always possible.

Another hint : Whenever your covered call option is at the money (ATM) or in the money (ITM), your stock could be called away from you. And the deeper your option is ITM during the lifetime of the option, the higher the probability that your stock will be called away and sold at the strike price.

Keep in mind : If your option is ITM by even one penny when expiration arrives, your stock will likely be called away.

Sell covered calls for premium

Selling covered calls can sometimes feel like you've made a triple play. After you sell a covered call on XYZ, you collect your premium, and you still receive dividends (if any) and any potential capital gains on the underlying stock (unless it's called away). It's important to note that any capital gains received from holding the stock are capped at the strike price.

On the other hand : The option buyer (the person who agreed to buy your option) may also want that dividend, so as the ex-dividend date approaches, the chance your stock will be called away increases.

Hint : The option buyer (or holder) has the right to call the stock away from you any time. You still keep the premium and any capital gains up to the strike price, but you could miss out on the dividend if the stock leaves your account before the ex-dividend date.

Another hint : Not surprisingly, some option buyers will exercise the call option before the ex-dividend date to capture the dividend for themselves. And if the option is deep ITM, there's a higher probability the stock will be called away from you before you get to collect the dividend. Anytime you sell a call option on a stock you own, you must be prepared for the possibility that the stock will be called away. When you sell a covered call, you receive premium, but you also give up control of your stock.

Keep in mind : Though early exercise could happen at any time, the likelihood grows as the stock's ex-dividend date approaches.

Get potential tax advantages by selling covered calls

There may be tax advantages to selling covered calls within an individual retirement account (IRA) or other retirement account where premiums, capital gains, and dividends may be tax-deferred. However, there are exceptions, so consult your tax professional to discuss your personal circumstances.

If the stock is held in a taxable brokerage account, there are some tax considerations.

For example, let's say in November you have potential profits on XYZ stock, but for tax purposes, you don't want to sell. You could write a covered call that is currently ITM with a January expiration date. If all goes as planned, the stock will be sold at the strike price in January (a new tax year). Remember, you're always accepting the risk, no matter how small, that your option will be assigned sooner than you planned.

On the other hand : If the stock falls rather than appreciates, you'll likely still be holding the stock, and the call option will expire worthless. You could always consider selling the stock or selling another covered call. Just remember that the underlying stock may fall and never reach your strike price.

Hint : If you believe the benefits of selling covered calls outweigh the risks, you might look for stocks you consider good candidates for covered call writing. A buy-write allows you to simultaneously buy the underlying stock and sell (write) a covered call.

Keep in mind : You may be subject to two commissions: one for the buy on the stock and one for the write of the call. Even basic options strategies like covered calls require education, research, and practice. Remember, no options strategy may be right for you unless it's true to your investment goals and risk tolerance.

The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.

Options carry a high level of risk and are not suitable for all investors. Certain requirements must be met to trade options through Schwab. Please read the Options Disclosure Document titled " Characteristics and Risks of Standardized Options " before considering any options transaction. Call Schwab at 800-435-4000 for a current copy. Supporting documentation for any claims or statistical information is available upon request.

Covered calls provide downside protection only to the extent of the premium received and limit upside potential to the strike price plus premium received.

Commissions, taxes, and transaction costs are not included in this discussion but can affect the final outcome and should be considered. Please contact a tax advisor for the tax implications involved in these strategies.

Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.

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Trading Options: Understanding Assignment

The options market can seem to have a language of its own. To the average investor, there are likely a number of unfamiliar terms, but for an individual with a short options position—someone who has sold call or put options—there is perhaps no term more important than " assignment "—the fulfilling of the requirements of an options contract.

Options trading carries risk and requires specific approval from an investor's brokerage firm. For information about the inherent risks and characteristics of the options market, refer to the Characteristics and Risks of Standardized Options also known as the Options Disclosure Document (ODD).

When someone buys options to open a new position ("Buy to Open"), they are buying a right —either the right to buy the underlying security at a specified price (the strike price) in the case of a call option, or the right to sell the underlying security in the case of a put option.

On the flip side, when an individual sells, or writes, an option to open a new position ("Sell to Open"), they are accepting an obligation —either an obligation to sell the underlying security at the strike price in the case of a call option or the obligation to buy that security in the case of a put option. When an individual sells options to open a new position, they are said to be "short" those options. The seller does this in exchange for receiving the option's premium from the buyer.

Learn more about  options from FINRA or access free courses like Options 101 at OCC Learning .

American-style options allow the buyer of a contract to exercise at any time during the life of the contract, whereas European-style options can be exercised only during a specified period just prior to expiration. For an investor selling American-style options, one of the risks is that the investor may be called upon at any time during the contract's term to fulfill its obligations. That is, as long as a short options position remains open, the seller may be subject to "assignment" on any day equity markets are open. 

What is assignment?

An option assignment represents the seller's obligation to fulfill the terms of the contract by either selling or buying the underlying security at the exercise price. This obligation is triggered when the buyer of an option contract exercises their right to buy or sell the underlying security.

To ensure fairness in the distribution of American-style and European-style option assignments, the Options Clearing Corporation (OCC), which is the options industry clearing house, has an established process to randomly assign exercise notices to firms with an account that has a short option position. Once a firm receives an assignment, it then assigns this notice to one of its customers who has a short option contract of the same series. This short option contract is selected from a pool of such customers, either at random or by some other procedure specific to the brokerage firm. 

How does an investor know if an option position will be assigned?

While an option seller will always have some level of uncertainty, being assigned may be a somewhat predictable event. Only about 7% of options positions are typically exercised, but that does not imply that investors can expect to be assigned on only 7% of their short positions. Investors may have some, all or none of their short positions assigned.

And while the majority of American-style options exercises (and assignments) happen on or near the contract's expiration, a long options holder can exercise their right at any time, even if the underlying security is halted for trading. Someone may exercise their options early based upon a significant price movement in the underlying security or if shares become difficult to borrow as the result of a pending corporate action such as a buyout or takeover. 

Note: European-style options can only be exercised during a specified period just prior to expiration. In U.S. markets, the majority of options on commodity and index futures are European-style, while options on stocks and exchange-traded funds (ETF) are American-style. So, while SPDR S&P 500, or SPY options, which are options tied to an ETF that tracks the S&P 500, are American-style options, S&P 500 Index options, or SPX options, which are tied to S&P 500 futures contracts, are European-style options.

What happens after an option is assigned?

An investor who is assigned on a short option position is required to meet the terms of the written option contract upon receiving notification of the assignment. In the case of a short equity call, the seller of the option must deliver stock at the strike price and in return receives cash. An investor who doesn't already own the shares will need to acquire and deliver shares in return for cash in the amount of the strike price, multiplied by 100, since each contract represents 100 shares. In the case of a short equity put, the seller of the option is required to purchase the stock at the strike price.

How might an investor's account balance fluctuate after opening a short options position?

It is normal to see an account balance fluctuate after opening a short option position. Investors who have questions or concerns or who do not understand reported trade balances and assets valuations should contact their brokerage firm immediately for an explanation. Please keep in mind that short option positions can incur substantial risk in certain situations.

For example, say XYZ stock is trading at $40 and an investor sells 10 contracts for XYZ July 50 calls at $1.00, collecting a premium of $1,000, since each contract represents 100 shares ($1.00 premium x 10 contracts x 100 shares). Consider what happens if XYZ stock increases to $60, the call is exercised by the option holder and the investor is assigned. Should the investor not own the stock, they must now acquire and deliver 1,000 shares of XYZ at a price of $50 per share. Given the current stock price of $60, the investor's short stock position would result in an unrealized loss of $9,000 (a $10,000 loss from delivering shares $10 below current stock price minus the $1,000 premium collected earlier).

Note: Even if the investor's short call position had not been assigned, the investor's account balance in this example would still be negatively affected—at least until the options expire if they are not exercised. The investor's account position would be updated to reflect the investor's unrealized loss—what they could lose if an option is exercised (and they are assigned) at the current market price. This update does not represent an actual loss (or gain) until the option is actually exercised and the investor is assigned. 

What happens if an investor opened a multi-leg strategy, but one leg is assigned?

American-style option holders have the right to exercise their options position prior to expiration regardless of whether the options are in-, at- or out-of-the-money. Investors can be assigned if any market participant holding calls or puts of the same series submits an exercise notice to their brokerage firm. When one leg is assigned, subsequent action may be required, which could include closing or adjusting the remaining position to avoid potential capital or margin implications resulting from the assignment. These actions may not be attractive and may result in a loss or a less-than-ideal gain.

If an investor's short option is assigned, the investor will be required to perform in accordance with their obligation to purchase or deliver the underlying security, regardless of the overall risk of their position when taking into account other options that may be owned as part of the overall multi-leg strategy. If the investor owns an option that serves to limit the risk of the overall spread position, it is up to the investor to exercise that option or to take other action to limit risk. 

Below are a couple of examples that underscore how important it is for every investor to understand the risks associated with potential assignment during market hours and potentially adverse price movements in afterhours trading.

Example #1: An investor is short March 50 XYZ puts and long March 55 XYZ puts. At the close of business on March expiration, XYZ is priced at $56 per share, and both puts are out of the money, which means they have no intrinsic value. However, due to an unexpected news announcement shortly after the closing bell, the price of XYZ drops to $40 in after-hours trading. This could result in an assignment of the short March 50 puts, requiring the investor to purchase shares of XYZ at $50 per share. The investor would have needed to exercise the long March 55 puts in order to realize the gain on the initial multi-leg position. If the investor did not exercise the March 55 puts, those puts may expire and the investor may be exposed to the loss on the XYZ purchase at $50, a $10 per share loss with XYZ now trading at $40 per share, without receiving the benefit of selling XYZ at $55.

Example #2: An investor is short March 50 XYZ puts and long April 50 XYZ puts. At the close of business on March expiration, XYZ is priced at $45 per share, and the investor is assigned XYZ stock at $50. The investor will now own shares of XYZ at $50, along with the April 50 XYZ puts, which may be exercised at the investor's discretion. If the investor chooses not to exercise the April 50 puts, they will be required to pay for the shares that were assigned to them on the short March 50 XYZ puts until the April 50 puts are exercised or shares are otherwise disposed of.

Note: In either example, the short put position may be assigned prior to expiration at the discretion of the option holder. Investors can check with their brokerage firm regarding their option exercise procedures and cut-off times.

For options-specific questions, you may contact OCC's Investor Education team at [email protected] , via chat on OptionsEducation.org or subscribe to the OIC newsletter . If you have questions about options trading in your brokerage account, we encourage you to contact your brokerage firm. If after doing so you have not resolved the issue or have additional concerns, you can contact FINRA .

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Options Tools and Research

At Schwab, options traders can use our options research tools to place trades and get research in real-time. Explore the advantages of trading Options at Schwab including low commissions and per contract fees.

This tool allows you to find and select potential trades that correspond to your opinion of an underlying security or an index. Additional trade related criteria are used to narrow the search such as change in volatility, profit %, amount invested, max gain or loss, assigned rate of return and more. Move quickly from discovery to order entry by selecting trade links from within the results.

View detailed Option Chains with real time quotes. Easily locate in and out of the money options. See quote details and open interest at a glance. Search for options on stocks, indices, and ETFs.

Specify exact options screening criteria such as implied volatility or a specific static or assigned rate of return. Because options traders need to have an opinion about the underlying security before they select an options strategy, many of the same criteria you would use to find stock trading candidates are also available in this tool.

While the Customizable Screeners have far more robust functionality, the Pre-Defined Screeners are simpler to use. Screen using over 10 different predefined strategies or modify our predefined screens to fit your needs.

Hear about the essentials of trading options in our Understanding Options Center, designed to provide a comprehensive overview of options education for beginners. Clients can access information about about options characteristics and terminology, options strategies along with detailed examples of each. You can also stay current on options strategies with live online and prerecorded seminars and articles on a variety of topics, no matter what your level of options trading experience and explore Schwab's extensive Options Article Library to get timely and insightful Options commentary from the Schwab Center for Financial Research.

• Bonds & Fixed Income Research

Options carry a high level of risk and are not suitable for all investors. Certain requirements must be met to trade options through Schwab. Please read the options disclosure document titled "Characteristics and Risks of Standardized Options."

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A place to focus primarily on all things related to Charles Schwab. This is a community, full of seasoned investors and newbies, focusing around the idea that investing is not as scary as some people make it.

How to get Options Assignment Notification ?

So, I was with Ameritrade for many years and I often sell options contracts. Once in a while the short option contracts get early assigned.

Before I was moved to Schwab, it was as easy as searching my email notifications for the word assignment and I can see exactly what was assigned.

After the move to Schwab this is missing. It comes up as transaction of 100 shares. But also other options transactions include the 100 number. So, searching Schwab 100 is not getting only the assignment email.

It would be great and beneficial to have that old way of notification that was clear and easy to find.

Ideally, I would love to get an email + sms text for early assignments.

Anyone knows of a way to do it? Or how do you keep track of that?

I have many different positions and lots of contracts, so looking at all my positions manually in 2 different accounts is NOT workable for me.

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How to Open a Charles Schwab Account

Our Brokerages Expert

You can open a Charles Schwab brokerage account online or at a physical branch. The fastest way to open an account is through the website. Below, we've done a deep dive into how to open a Charles Schwab account. You can follow along to open an account online.

Charles Schwab

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$0 stock, ETF, and Schwab Mutual Fund OneSource® trades. No fees to buy fractional shares.

$0, ($5 minimum per fractional share transaction)

What you'll need to open a Charles Schwab account

You'll need the following information. Have it on hand to get your Charles Schwab account up and running:

• Your Social Security (SSN) or Tax Identification Number.
• Your employer's name and mailing address, if applicable.
• Your email address and mobile phone number.

If you're opening an IRA, you'll need the beneficiaries' birthdates. You must say who you want to inherit the account. If you're opening a joint account, both owners must enter personal information. You can have the other account owner do so by sending them a link later on.

Step 1: Choose a Charles Schwab account

Charles Schwab lets you choose from a handful of brokerage account types. Below are some of the most popular types of brokerage accounts that Charles Schwab offers.

Brokerage account

Charles Schwab offers a taxable brokerage account -- it's the standard account type. You don't get any tax advantages, but neither are you bound by special trading rules. A Charles Schwab brokerage account is cheap. It costs $0 to open and has no maintenance fees or minimums. You can trade stocks, ETFs, mutual funds, and more.

Traditional IRA

With a traditional IRA , you pay no taxes on money you invest. You pay the taxes when you withdraw it. The downside is you can't access your money until you reach retirement age. You can withdraw from the account early, but you'll pay an early withdrawal penalty.

A Roth IRA is more flexible than a traditional IRA and comes with different perks. You pay taxes on money you invest in the account, but you don't pay taxes when you withdraw money. If you withdraw a lot of money from your IRA at retirement age, withdrawals aren't impacted by your tax bracket. Once you've had the account for five years and are at least 59 1/2, you can withdraw investment gains from your Roth without paying a 10% early withdrawal fee or taxes.

You can open individual or joint brokerage accounts with Charles Schwab. You can also open a Schwab Intelligent Portfolios account, a robo-advisory account. To do so, you'll need to take a short quiz that Charles Schwab uses to measure your investing preferences. You'll also need $5,000 on hand to invest in the account -- this minimum is only for the robo-advisory account.

Step 2: Click an "Open account" button on the Charles Schwab website

Charles Schwab will direct you to a page that gives you an overview of the account you're opening.

If you have a referral or promo code, enter it on this page. To get started with a quick bonus, check out current Charles Schwab promos . There's usually at least one promo available. Heads up, you may need to open an account from a specific page to get a cash bonus.

Step 3: Enter your personal information

Be prepared to enter your name, date of birth, Social Security number, email, and phone number. Charles Schwab may ask you whether your current home address is in the U.S.

Step 4: Answer regulatory questions

Standard regulatory questions check whether you can legally open a brokerage account. Be prepared to answer why you're investing, whether you work for a broker, and whether you hold a huge stake in a company.

Step 5: Choose your account features

Charles Schwab will ask if you want more access. This includes optional features, like margin trading and options trading . These advanced strategies pose a significant risk. If you're new to investing, you likely want to leave these boxes unchecked for now.

Step 6: Review and confirm

Charles Schwab asks you to finish by reviewing your choices and agreeing to Charles Schwab's terms and conditions. Consider at least skimming the summaries to know what you're signing up for. Charles Schwab may ask you to open a cash management account or another account type. But, any such account should charge you $0 in opening or maintenance fees.

Step 7: Fund your account

You can fund your account right away, though it's not required. Charles Schwab lets you open a brokerage account with a $0 minimum. The exception is if you're opening a robo-advisory account . But if you're pursuing a Charles Schwab promotion, you may want to fund your account soon to get your new account bonus.

To fund your account, you'll need to link it to a bank account or another brokerage account. If you want to link, say, a checking account , you'll need your account and routing numbers handy. If you don't want to do this yet, no worries -- you can always link your other accounts later.

Fees and minimums

There is no minimum deposit required to open a taxable brokerage account, traditional IRA, or Roth IRA with Charles Schwab. Nor are there monthly maintenance fees you need to pay to keep the account open -- Schwab is light on fees.

But, you do need $5,000 to open a Schwab Intelligent Portfolios account. It's a robo-advisory account that manages your investment based on your preferences. If you want extra features like tax-loss harvesting, you'll need to deposit even more.

Article sources

• https://www.schwab.com/open-an-account
• https://www.schwab.com/ira/roth-ira/withdrawal-rules
• https://onboard.schwab.com/retail/welcome
• https://www.schwab.com/cryptocurrency

Margin rates are poor, and Charles Schwab doesn't offer spot cryptocurrency trading. If you want to borrow from Charles Schwab or trade crypto, you may want to look elsewhere for a broker.

You need $0 to open a regular Charles Schwab brokerage account. But, if you're opening a robo-advisory account, you need $5,000.

Our Brokerages Experts

Cole Tretheway is a full-time personal finance writer whose articles have been featured on The Ascent and The Motley Fool. He has a degree in English with a Certificate in Professional and Technical Communication from California Polytechnic University, SLO.

Writer and Editor

Ashley Maready is a former history museum professional who made the leap to digital content writing and editing in 2021. She has a BA in History and Philosophy from Hood College and an MA in Applied History from Shippensburg University. Ashley loves creating content for the public and learning new things so she can teach others, whether it's information about salt mining, canal mules, or personal finance.

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