Choices bring a high level of risk and are not ideal for all financiers. Specific requirements should be met to trade options through Schwab. Please check out the Options Disclosure Document titled Characteristics and Dangers of Standardized Alternatives before thinking about any options transaction. Call Schwab at 1-800-435-4000 for a present copy. Supporting paperwork for any claims or analytical info is readily available upon demand.
One aspect that affects how market makers cost options is volatility. This video checks out the Cboe Volatility Index ®, known as the VIX ®, which is used by market makers and specific traders alike to measure volatility and make trading decisions. This video belongs to our Trading Choices course.
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