Learn Stock and Trading Tutorials

How to place an option trade

Ready to build your portfolio with options? Get step-by-step instructions and helpful tips on placing an option trade.

CIBC Investor's Edge 2-minute read

Introduction

Option trading is best suited for experienced investors because of the potentially higher level of associated risk. Option trading privileges must be added to your Investor's Edge account before you can place your first option trade. To find out how to add these privileges to your account, contact us Opens in a new window..

For spreads and straddles or other complex option strategies, contact us Opens in a new window..

Placing an option trade

Step 1

Go to "Trading" and select "Trade Options."

Tips

You can also place a trade through the ellipses menu on “Account Holdings,” “Watch list,” ”Quote list” or the option chain in Quotes & Research.
Track individual option quotes in “Quote lists” or “Watch lists.”

The Trade Options page under the Trading tab.

Step 2

Choose your account and action type, and enter the underlying stock symbol for the option you want to trade.

Step 3

Next, select the "Option expiry," "Strike price" and "Option type.”

Tip

Once you select a symbol, you’ll get a quote you can refresh throughout the trading steps.

Step 4

Enter the quantity, order price and order expiry.

Tips

Select information icons for explanations of different order types.
Consider using a Limit order, especially when placing a trade outside market hours.

Step 5

Select the account to "Pay From" or "Pay To." Then select "Next."

Tip

If you select the US market but choose to pay from the Canadian dollar component of your brokerage account, foreign exchange rates will apply.

The Trade Options page with the order form filled out.

Step 6

Confirm your trade details including the estimated cost. Enter your trading password and select “Submit order.”

Tip

Planning on making multiple trades? Save your trading password for the current session and use it later.

The verification screen after filling out the order form.

Confirm the status of your order

You’ll receive confirmation that your order was successfully submitted for approval. Go to "Order Status" and select the "Option" tab for updates.

Tips

Set up fill alerts to be notified by email once your trade has been completed.
The settlement period for options is the transaction date plus one business day (T+1).
You can change or cancel any open or unfilled portion of a partially filled order except for market orders. Trade orders with a status of pending can be cancelled but cannot be changed.
Select the expand button for more options and details of your order.

How to place an option trade

Introduction

Placing an option trade

Step 1

Step 2

Step 3

Step 4

Step 5

Step 6

Confirm the status of your order

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