TD Ameritrade Offers Mini-Options to Investors and Advisors
by Business Wire
TD Ameritrade, Inc. (“TD Ameritrade”), a broker-dealer subsidiary of TD Ameritrade Holding Corporation (NYSE: AMTD), will offer retail investors and independent registered investment advisors (RIAs) the ability to trade mini-options effective Monday, March 18, 2013. These innovative new option contracts are 1/10 the size of a standard option contract and were created to respond to the evolving needs of individual investors and advisors who utilize options as part of their trading strategy.
TD Ameritrade is the leader in retail options trading, and nearly 40 percent of its client trades in the quarter ended Dec. 31, 2012, were in derivatives, including options. The availability of mini-options will benefit this client base in a number of ways. For example, investors who hold positions of less than 100 shares in higher-priced securities such as Apple (AAPL), Google (GOOG) and Amazon (AMZN), will now be able to write covered calls or purchase protective puts against these shares where previously this was not possible. In addition, they will be able to buy mini-options on these higher-priced securities that were cost-prohibitive in the past.*
“We’re pleased that TD Ameritrade is among the first to offer access to this innovative new product,” said Steve Quirk, senior vice president of TD Ameritrade’s trader group. “Providing our clients with education about new products, paired with the best in options trading technology is what led thinkorswim to be recently named the #1 options platform by Investor’s Business Daily.** Mini-options will help to level the playing field by allowing widespread access to options on some of the most popularly traded companies.”
TD Ameritrade will host a free webcast for all investors who are interested in learning more about the potential benefits and risks associated with mini-options on Monday, March 18, 2013, at 9 a.m. ET. For more information or to register, click here. An archived version of the webcast will also be available online following the initial broadcast.
TD Ameritrade Institutional will also host a free webcast for independent RIAs on Thursday, April 4, 2013. For more information or to attend the webcast, please call 866-547-8431.
To learn more, advisors can call 800-444-6100 or visit www.tdainstitutional.com.
Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses. Before trading options, please read Characteristics and Risks of Standardized Options.
A covered call strategy can limit the upside potential of the underlying stock position as the stock would likely be called away in the event of substantial stock price increase.
The protective put strategy provides only temporary protection from a decline in the price of the corresponding stock. Should the put expire worthless, the entire cost of the option would be lost.
*Commission, exercise and assignment fees are the same as standard option contracts. Visit our pricing page for more information.
Option trading leadership claim based on analysis of publicly available competitor data concerning number of retail options contracts traded and options daily average revenue trade levels.
**TD Ameritrade (and its thinkorswim platform) was evaluated against 16 others in the Investor’s Business Daily Best Online-Brokers review, January 25, 2013. thinkorswim was named best in the categories of Options Trading Platform, ETF Choices, Educational Resources and Mobile Platform/Trading. TD Ameritrade was named among the best in the categories of Research Tools, Portfolio Analysis & Reports, Investment Research, Educational Resources, and Equity Trading Tools. Read the article.
Security symbols mentioned are for illustrative purposes only, and reflect some of the securities for which mini-options are available in the market. This is not a recommendation to trade any specific security.
About TD Ameritrade Holding Corporation
Millions of investors and independent registered investment advisors (RIAs) have turned to TD Ameritrade's (NYSE: AMTD) technology, people and education to help make investing and trading easier to understand and do. Online or over the phone. In a branch or with an independent RIA. First-timer or sophisticated trader. Our clients want to take control, and we help them decide how – bringing Wall Street to Main Street for more than 36 years. An official sponsor of the 2014 and 2016 U.S. Olympic and Paralympic Teams, TD Ameritrade has time and again been recognized as a leader in investment services. Please visit TD Ameritrade's newsroom or www.amtd.com for more information.