How Do I Buy Options on Ally Invest?
To purchase options on Ally Invest, log in to your account, navigate to the Options Trading page and select an option to trade by clicking on it. Next, choose an order type and submit instructions for approval. Once your order has been approved by the support team and placed in the market, you can monitor its progress through the Orders section of My Account or Order History within a specific equity position.
Ally Invest is a brokerage in which you can buy and sell stocks, ETFs, and options. Buying options can be a great way to trade in the stock market without committing capital or using specialized strategies.
Ally Invest offers different options and strategies in a low-cost environment. It makes it easy for individual traders to purchase options and manage them through their online brokerage accounts.
Here's how to buy options on Ally Invest.
1. Log Into Your Ally Invest Account
To buy options on Ally Invest, you'll need to log into your account and select Trade from the top navigation menu. Next, click on Options Trading.
2. Select the Call or Put the Option Contract
After selecting the Ally Invest account, you would like to trade with, choose the option contract. Options come in two flavors: calls and puts.
A call option is a contract allowing the buyer to purchase a stock or other financial instrument at a given price within a specified time frame. A put option is similar, except that it gives you the right to sell a security at a given price within a set period.
Both types have an expiration date; once this period passes, your option comes to its end-of-life and no longer has any value whatsoever.
3. Enter the Stock Symbol or Company Name
Once you've selected the option type, you'll need to enter the stock symbol or company name you want to trade options. You can search for the stock symbol or company name in the search box in the upper right-hand corner of your screen.
4. Select Your Order Type
You can choose between two types of orders:
Market order. This order type is executed immediately at the best price available when you place an order. You'll need to know how much money you want to spend on each option and at what strike price.
Limit order. A limit order is a barrier preventing your trade from being executed at a worse price than what you specified in your instruction. It means that even if there is a better deal, it won't be accepted unless it hits this limit.
5. Enter the Number of Contracts and Price
You can enter the total number of contracts you want to purchase and the price per contract. The difference between a contract and a unit is an important one. A unit is the equivalent value of 100 shares, whereas a contract represents 100 units or shares.
6. Review and Confirm Your Order
The last step before submitting your order for approval is to review and confirm the details of your order. Reviewing these details ensures you don't miss anything important. You can make any necessary changes before submitting it for approval.
When reviewing your options order:
- Review the price per share or contract and how many shares or contracts you want to purchase.
- Ensure you have enough funds in your account balance/margin balance to cover any trades made.
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