With one click, traders can now tack options strategies onto an existing stock position to either offset risk or generate income
NEW YORK--(BUSINESS WIRE)-- E*TRADE Financial Corporation (NASDAQ: ETFC) today announced another significant addition to its suite of tools designed to make trading easier. The Income and Repair tools, found on the OptionsHouse platform, do much of the strategy legwork for you by coupling an equity position with options contracts that can fill specific portfolio needs. Traders have the ability to seamlessly integrate options into their trading strategies to help offset risk or generate income by:
- Using the Income tool to set up a call to sell against a stock position to generate income, or
- Using the Repair tool to create a ratio call spread in an effort to lower a breakeven price
"Many investors find options to be a powerful tactic when managing risk or seeking income in a portfolio," said Christopher Larkin, Senior Vice President of Trading Product at E*TRADE Financial. "With the addition of the Income and Repair tools to the OptionsHouse platform, traders can easily and intuitively build options strategies into their positions, uncovering opportunities that aren't always obvious but may be effective."
E*TRADE aims to enhance the financial independence of traders and investors through a powerful digital offering and professional guidance. To learn more about E*TRADE's trading and investing platforms and tools, visit etrade.com.
For useful trading and investing insights from E*TRADE, follow the company on Twitter, @ETRADE.
About E*TRADE Financial and Important Notices
Important Note: Options transactions are intended for sophisticated investors and are complex, carry a high degree of risk, and are not suitable for all investors. For more information, please read the Characteristics and Risks of Standardized Options prior to applying for an account. Also, there are specific risks associated with covered call writing, including the risk that the underlying stock could be sold at the exercise price when the current market value is greater than the exercise price the call writer will receive. A covered call writer forgoes participation in any increase in the stock price above the call exercise price and continues to bear the downside risk of stock ownership if the stock price decreases more than the premium received. Because of the importance of tax considerations to all options transactions, the investor considering options should consult their tax adviser as to how taxes affect the outcome of each options strategy. 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.
The Income and Repair tools are provided for informational and/or educational purposes and should not be used or construed as investment advice, financial guidance, or an offer, solicitation, or recommendation to buy, sell, or hold any security, commodity futures, futures options, or investment by E*TRADE. Before buying or selling any investment, you should carefully consider your financial situation, investment objectives, risk tolerance, and liquidity needs and consult your broker, financial advisor, and/or licensed tax professional to determine for yourself whether the investment is suitable for you. Past performance of securities, commodity futures, and futures options are not indicative of future results.
E*TRADE Financial and its subsidiaries provide financial services, including brokerage and banking products and services, to retail customers. Securities products and services, including options, are offered by E*TRADE Securities LLC (Member FINRA/SIPC). Commodity futures and options on futures products and services are offered by E*TRADE Futures LLC (Member NFA). Managed Account Solutions are offered through E*TRADE Capital Management, LLC, a Registered Investment Adviser. Bank products and services are offered by E*TRADE Bank, and RIA custody solutions are offered by E*TRADE Savings Bank, both of which are federal savings banks (Members FDIC). More information is available at www.etrade.com.
E*TRADE Financial, E*TRADE, OptionsHouse, and the E*TRADE logo are trademarks or registered trademarks of E*TRADE Financial Corporation. ETFC-G
System response and account access times may vary due to a variety of factors, including trading volumes, market conditions, system performance, and other factors.
© 2018 E*TRADE Financial Corporation. All rights reserved.
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Source: E*TRADE Financial Corporation
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