Options Trading with BMO InvestorLine Self-Directed
Trade options with confidence using our modern and guided options trading experience, purposefully-built to help all levels of investors trade smarter.
Fully integrated options workflow that guides novice traders with Strategy Builder and supports advanced traders with MLO (multi-leg options) capabilities.- Advanced tools and capabilities like position type view, fast in-account trade adjustments (roll/open/close), screeners, and more.
- Trades are evaluated using a real time buying power calculation so that you can maximize your trading opportunities.
What are options?
Options are financial contracts that give the buyer the right, but not the obligation, to buy or sell an underlying asset, usually a stock or ETF, at a specific price by a specific date.
Great for
Experienced investors seeking strategic flexibility and opportunities in market volatility.
Typical Risk Level
Medium-high
Typical investing horizon
Short to medium-term
Benefits of options trading
Whether you’re looking to manage risks or explore new avenues for potential income, options trading can be a versatile addition to your investment strategy. At BMO, we provide you with the tools and insights to integrate options into your portfolio effectively, catering to both risk management and income generation needs.
Diversification
Gain exposure to the wider market and diversify your portfolio in a cost-efficient way.
Risk Mitigation
Manage risk by using options to hedge against market volatility.
Income Generation
Boost your profit potential by speculating on market movement.
Understanding Options Trading
Options provide flexibility and control, allowing you to speculate on market movements or hedge against uncertainties in your portfolio.
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Unlock even more advanced trading capabilities
Multi-Leg Options
Trade multi-leg options with ease using built-in analysis and scenario tools.
Options Screener
Uncover hidden gems with ease using our powerful Options Screener
Strategy Builder
Build, analyze, and fine-tune your options strategies
Get started with BMO InvestorLine Self-Directed
Confidently trade options, stocks, ETFs and more with comprehensive research and tools designed to simplify your investment journey.
- Leverage advanced trading features and dedicated support.
- Access industry leading research and real-time quotes.
- Make informed decisions with personalized performance tracking and insights.
Experienced trader? Elevate your trading with BMO InvestorLine’s 5-Star Program
Tailored for seasoned traders, our program offers exclusive tools, options trading, and dedicated support for those with 15+ trades per quarter or over $250,000 in investments.
- Get dedicated support with exclusive pricing.
- Superior tools and analysis for better-informed decision-making.
- Free access to BMO Active Trader – our most powerful online trading platform yet.
Amplify your investment strategy with Options Greeks
Greeks help you evaluate the risk level of an option or a portfolio of options
Delta shows the rate of change in an option’s price relative to the underlying asset.
Theta measures the impact of time decay on an option’s value over a one-day period.
Gamma indicates the rate of change in Delta of the underlying asset.
Vega measures how volatility affects an option’s value.
Index options are contract that use a benchmark index or a futures contract based on that index as their underlying instrument.
Related Resources
Options Trading: Get Started with our Beginner's Guide
Discover option trading and different option trading strategies that will help maximize your ROI.
What is the VIX, or Volatility Index and How Does It Work?
Everything you need to know about the Volatility Index.
What are covered calls in options trading?
Learn about covered calls and how you can put it to work in your portfolio
FAQs
Options trading differs from traditional stock trading as it involves buying contracts that grant you the right to buy or sell stocks at a predetermined price by a specific date. Unlike owning shares directly through stock trading, options trading offers strategic flexibility as it requires less initial capital. However, it does carry unique complexities and risks.
The potential for losses in options trading can surpass the initial investment, especially with certain strategies. It’s important for traders to thoroughly understand both the mechanics and risks involved with options, including the possibility of losing the entire premium paid for the options contract.
Popular strategies include:
- Buying calls or puts for speculation or hedging
- Selling covered calls for potential income generation
- Bull and bear spreads for speculation
Each strategy has unique goals and risk profiles that are suitable for different market conditions and investor objectives.
Yes, options can be traded on various assets including stocks, ETFs and indices. This allows investors to trade options strategies across a diverse range of investment opportunities.
Some common mistakes in options trading include:
- Not understanding the specific terms of an options contract
- Ignoring the impact of time decay on premium prices
- Failing to manage risk adequately
You’ll need an options-approved account. If you’re a new client, you can apply for an options-approved account when opening your BMO InvestorLine account. If you’re an existing client, you can upgrade your account online.
Options trades are subject to commissions. For detailed information on fees and commissions, please refer to our Commission and Fee Schedule.
Our Education Hub is packed with resources like articles, videos, webinars, and courses on options trading. We cater to traders of all levels, from beginners to seasoned professionals. Visit our Education Hub today!
Have questions? That’s what we’re here for.
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