Equity Options

An equity option is a contract between a buyer and a seller. Buying an option contract gives the owner the right, but not the obligation, to buy the underlying equity instrument at a specified price for a specified period of time. When selling an option, the seller is obligated to buy or sell the underlying security if the buyer exercises his or her option. If the option isn't exercised or assigned by the expiration date, the contract expires.

Unlike stocks, an equity option does not represent ownership in the underlying company. Because it is a contract, it represents the potential for ownership, but it must be exercised in order for it to happen.

Commissions

Trade Volume Commision
<=1,000 USD 0.70 per contract
1,001-25,00 USD 0.60 per contract
25,01 - 5,000 USD 0.50 per contract
>5,000 USD 0.40 per contract
 

Getting Started


Clients can trade and invest in options with a CMEG Active Account. To start, clients will need to apply for and be approved for option permissions in your account. Existing clients can contact us here or via email at clientservices@cmelitegroup.com to apply for options permission.

NOTE: Options carry a high level of risk and are not suitable for all investors. Certain requirements must be met to trade options through CMEG. Please read the options disclosure document titled Characteristics and Risks of Standardized Options before considering any option transaction. Commissions and other costs may be a significant factor. An options investor may lose the entire amount of their investment in a relatively short period of time.

* Commissions do not include trade fees and regulatory fees.
* Options trading requires approval and subscription to Options Price Reporting Authority (OPRA) market data.
* Options trading is available only on the Traders Elite Pro-powered by Sterling platform.
* Active Account rates are applicable only to Active Accounts on the Traders Elite Pro platform.
* Equity options are defined as any option on an individual stock. US legal residents are generally excluded from trading securities options outside of the United States due to SEC restrictions.


ABOUT SSL CERTIFICATES