Options trading conditions at tastytrade explained

Options trading is increasingly popular, but it's still something of a niche product aimed at more experienced traders, so not all brokers offer it and trading conditions can differ widely.

We have good news: tastytrade offers options trading, under good conditions and with access to many options markets. Click to open your tastytrade account or read on for details and comparisons.

tastytrade is great for options trading

[Broker name] is great for options trading

Adam Nasli

Trading • Safety • Market Analysis

I bring extensive financial expertise as one of BrokerChooser's earliest team members. Personally, I tested nearly all 100+ brokers on our site, opening real-money accounts, executing trades, assessing customer services, and providing firsthand assessment. My professional background includes roles in the banking sector and a degree from Central European University, where I teach finance. My passions lies in in-depth research of the financial industry, building trading algorithms, and managing long-term investments.

Learn about our methodology

Adam Nasli

Trading • Safety • Market Analysis

I've tested dozens of brokers in recent years, including their options trading features. tastytrade impressed me overall; here's why:

• It has an above-average options trading score based on fees, products and UX.
• tastytrade offers access to 8 options markets.
• Options trading fees at tastytrade are low.
• Trading platform and research quality make a difference.
• See how tastytrade compares to the best in class.

Before we begin, let's see if tastytrade is available in your country:

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To assess whether tastytrade is a great place to trade options, we calculated a comprehensive options score that takes into account options trading fees, the potential number of options products available, and the quality of the broker's trading platform (including charting and other research tools).

tastytrade's overall options score of 4.8 stars is considered above average among the brokers we cover that offer options trading. Here's how tastytrade scored against some close rivals:

Need a refresher course on options trading? Here's a high-level overview of all you need to know about trading options. If you're already familiar with the basics, you can dive right into options trading strategies or the niceties of options pricing.

Still lacking options trading mileage? We suggest you start with our introduction to options trading for beginners.

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Note that tastytrade charges a flat $5 fee/leg for exercise and assignment (irrespective of how many shares are exercised or assigned).

The fees for the Single-Listed Exchange Proprietary Index Options are cheaper: for example, it's $0.65 per contract on the SPX and $0.18 on the NDX indexes.

In the table below, we listed options trading fees (calculated in USD terms) at tastytrade and some of its competitors for trading 10 options contracts.

Please note that some brokers don't charge a separate fee for closing an options trade. In these cases, in order to represent this discount properly, we calculated with just half of the opening fee, because most other brokers charge for both the opening and closing transactions.

So what's all the fuss about fees? Aren't they just a tiny fraction of the value of a typical trade? Well, they may be, but differences in fees among brokers can still be substantial. Of the 100+ brokers we cover, the cheapest one charges $5 for trading 10 US stock index options contracts, while the most expensive one charges $35. Even if you're just a casual trader who does one or two options deals a month, the difference in trading fees can add up to hundreds of dollars a year. Just think of all the goodies you can buy with that money!

Trading fees and product selection are only part of the story when it comes to options trading.

• A great trading interface (especially on desktop) with user-friendly search and order functions, good charting capabilities and quality research material is an option trader's best friend.
• Costs don't stop at trading fees; if you trade often and want access to your trading profits, withdrawal fees can sting.

In the table below, you can check how tastytrade compares to some close competitors in trading platform quality and other features.

Options trading view at tastytrade

For options trading, you can choose between two views: the standard option chain, called 'Table', and a unique visual trading interface, called 'Curve'.

Under both views, you can use many predefined strategies:

• Vertical
• Strangle
• Straddle
• Option
• Iron condor
• Covered stock
• Butterfly
• Jade lizard
• Calendar

You can also set up and customize trading strategies with the Advanced Strategy Builder tool to find a trade that fits your strategy, based on your preferred predefined metrics.

It looks very complicated at first, but it's a very functional platform once you get the hang of it. For example, it has a list of predefined option strategies, so opening an iron condor takes only two clicks.

You can also drag and drop the different option orders and easily edit the default parameters. We think this is one of the biggest selling points of the platform.

tastytrade is great for options trading, but can you go one better? See for yourself by browsing our top ten list of the best options brokers in your country.

Alternatively, if you want a broader comparison or have some specific other brokers in mind, you can use our broker comparison tool to size up options brokers along many different criteria.

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