The standard online $0 commission does not apply to large block transactions requiring special handling, restricted stock transactions, trades placed directly on a foreign exchange, transaction-fee mutual funds, futures, or fixed income investments. Please contact a tax advisor for the tax implications involved in these strategies. Hedging and protective strategies generally involve additionalĬosts and do not assure a profit or guarantee against loss.Ĭommissions, taxes and transaction costs are not included in this discussion, but can affect final outcome and shouldīe considered. Investing involves risks, including loss of principal. The premium received and limit upside potential to the strike price plus premium received.
Covered calls provide downside protection only to the extent of Spread trading must be done in a margin account. Multiple leg options strategies will involve multiple commissions. With long options, investors may lose 100% of funds invested. Please read the Options Disclosure Document titled Characteristics and Risks of Standardized Options before considering option transaction. Certain requirements must be met to trade options. Options carry a high level of risk and are not suitable for all investors.
