How Do I Sell Options on TD Ameritrade?

TD Ameritrade has a self-service platform that lets you strategize your action. But first, here are the basic steps you need to sell options on TD Ameritrade:

1. Click the TRADE Tab at the Top of Your Screen

You'll see a list of options, including:

• Buying or selling stocks/ETFs/ETNs.
• Selling covered calls on equities, ETFs and ETNs (stock).
• Writing short puts on equities and ETFs (stock).
• Select which option to trade from this list by clicking on it.

2. Select Options Under Trade

Select Options under Trade and choose the option type you want to sell, such as Calls or Puts. You'll see a list of available underlying securities (or asset classes). Select the one you wish to sell your option on, then click Sell.

3. Choose the Product Type and Enter the Symbol

Choose the type of option. You can choose options by selecting an existing options chain or entering a new symbol into the Symbol field and pressing Enter. The two most common types of options are calls and puts.

4. Choose Your Action and Order Type

Enter your order details. To do this, click on the Sell tab in the sell box in the upper right corner of the window. In this drop-down menu, you will see three options that you can sell to:

• Open (also known as a Long Call) — You buy an option contract that allows you to buy a stock at a specific price by buying a call option or selling one.
• Close (also known as a Short Call) — You sell an existing call option contract at current market value.
• Open (also known as a Long Put) — You buy an option contract that allows you to sell stock at a specific price by buying a put option or selling one.

Enter information into each field: quantity, price per share, type of security, the number of contracts, etc. When entering information, ensure it is correct and includes all required data, such as expiration date and strike price. Confirm your order by clicking Sell next to the column header.

6. Review Your Order on the Preview Page

Once you've selected the options you want to sell, review your order on the preview page. Make sure that:

• You select the correct order type.
• The underlying security is correct.
• The quantity is correct.
• Price is correct and if it isn't, modify it using sliders on the right side of your screen or by typing in a new number directly into one of these fields (don't use commas).
• Click Confirm and Send.

7. Click Close To Return to the Quote Page

TD Ameritrade's final confirmation message will appear, confirming it has successfully submitted and completed your order. This window also includes an Order Details link for viewing more information about your option trade(s). You can view this information by clicking on it and selecting View Trade History from the My Account menu.