eOption is one of the most affordable online trading platforms, with trading commissions starting at just just $2.95. However, while the eOption trading platform has all the functionality most advanced traders would need, its design isn’t the most intuitive to use. Here’s a step-by-step rundown of how to make a single-leg option trade on the eOption platform.
- Find the option chain. There are two different ways to enter an order option on the eOption platform. The first way is through the option chain. Starting from your user dashboard, click on the “Option Chain” tab at the top of the screen, then type in a ticker symbol and select an expiration date from the drop-down menu. To expand or contract the number of strike prices, you can use the “Range” dropdown menu as well.
- Select the expiration date and strike price. Once the option chain for a particular expiration date is pulled up, you can see the various strike prices for the given expiration date in a column in the middle of the screen. To the left of the “Strike” column, you will see all the price quotes, volumes and open interest for call options. Information on put options appears on the right side of the screen. Once you have selected the strike price and option type you’re interested in trading, simply click the check box immediately to the left or right of the “Strike” column one time to buy, two times to sell or three times to unselect.
- Verify your order. Once you have selected to buy or sell a particular option contract, a blue “Trade” button will appear at the bottom of the screen. Clicking the “Trade” button will bring up the Option Ticket for your trade, where you can type in the quantity of contracts you wish to trade, select an order type from a drop-down menu and enter a limit price, if applicable. Once all of the information is entered, click the blue “Verify” button to bring up a summary of your order details.
- Confirm your trade. The “Verify Your Order” box includes a breakdown of the net cost of the trade, as well as the fees and commissions you will be charged for the order. To finalize the trade, click the “Trade” button. After the trade order has been placed, you can go to the “Trade” tab of your dashboard to confirm the status of your order.
A quicker option. An alternative way to place a single-leg option trade from the eOption dashboard is best used when you already know exactly which contract you wish to trade and don’t need the information provided in the option trade. From your dashboard, click on the “Trade” tab and directly pull up an Option Ticket. Click the “Add Option” button and manually input an action, quantity, expiration date, strike price and specify call or put. Once the information is entered, the corresponding bid and ask prices will appear. Select order type, enter a limit price if applicable, and then click the “Verify” button to place the order. From that point forward, you’ll follow the same order verification process described above.
eOption doesn’t have the type of hand-holding educational tools that other online brokers do. But once you get the hand of the platform, it’s pretty straight-forward to use and a great place for trading options.