How to Buy Options Without Paying a Single Trading Fee

Hi, Matthew Carr again…. and welcome back to my Optimize Your Options video series.

This is part four of my six-part series…

And in this video, I’m going to show you how to buy options and keep your trading fees to a minimum. Or pay no fees at all!

I know it sounds crazy. But thanks to a new broker pioneering the world of discount trading, it’s entirely possible.

In this video, I’ll explain all the details, as well as walk you through the essential information you’ll need to begin acting on my recommendations today.

Now, if you have a brokerage account and some trading capital on hand, you’re already more than halfway there.

If you’re new to options trading, don’t worry! I’ll lay out everything you need to know.

For our purposes today, it all starts with my alerts.

These are the weekly email notifications you’ll receive from me.

Sometimes my alerts will provide portfolio updates. And other times they’ll include new recommendations. My goal is to give you two to three new recommendations each month.

Now, every recommendation will include a stock purchase. And almost always, I’ll include a “bonus” call option trade.

This is for investors who are looking to supercharge their returns or be more speculative.

Regardless of whether you choose to buy the stock, buy the call or buy both, executing the trades is quick and easy.

And it can be cheap too… but I’ll get to that in a moment.

Keep in mind I give you all of the essential information you’ll need to execute every part of the trade.

That means all you’ll need to decide is how many shares or contracts you wish to buy.

From there, you can complete the trades with a few clicks of your mouse.

Now, if you don’t have a brokerage account… don’t delay in setting one up. Time is money, and you’re wasting time!

If you work with a full-service broker, that’s fine. I’m not going to judge you. But any discount broker will do.

Personally, I like Charles Schwab and have used it for many, many years. But Fidelity, TD Ameritrade, Robinhood or any other major platform will also work.

And I will point out that Robinhood is the brokerage platform that offers commission-free trading.

You can access its website by visiting robinhood.com. Or you can download its mobile app.

With free, you’re giving up some tools. So Robinhood doesn’t provide research, data or charts. But if you’re looking for a cheap, no-frills way to trade, you should consider checking it out.

Now, once you have an account with the broker of your choice, you’ll simply log in online or through a mobile app to place a trade.

You’ll search for a stock by its name or symbol, select the number of shares you want and click “buy.”

It’s that simple!

If you’re purchasing a call option I recommend, there’s just one or two additional steps required, but it’s all very straightforward.

You’ll start by looking up the options available for the stock. Be sure that you’re zeroing in on the “calls” rather than the “puts.” Put options are a different kind of contract… and we’re not going to use them in Dynamic Fortunes.

Then you’ll locate the one that matches my recommended expiration date and strike price.

For example, if I recommended the Columbia Sportswear October $75 calls, you’d look for the call option with the October expiration date and then the $75 strike price.

Then you’ll select the number of contracts you wish to purchase and click “buy to open.”

Remember, every one contract controls 100 shares. And you multiply the price of the call times the number of contracts times 100 to calculate how much the trade will cost.

That sounds like a mouthful, but it’s pretty easy.

For example, if you buy three contracts at $2.50 each, your cost is $750.

Of course, later on, if you sold the calls at $6, you’d collect $1,800. Because three times six times 100 equals 1,800.

That’s all there is to it!

Now, with all brokers (besides Robinhood), you’ll pay a small commission each time you buy and sell a stock or option. This fee is usually between $7 and $10, but check with your broker to be sure.

Once you begin trading my recommendations, you’ll see how easy it is to put my research to work in a couple of minutes each week.

And if you use a full-service broker, the process will be similar.

You’ll simply tell your broker all of the trade details and how much you wish to buy.

Then you’ll keep an eye out for my alerts for instructions on closing the trade.

And oftentimes we’ll be taking gains along the way.

So you could be taking profits three weeks, three months or six months down the road. But I’ll never leave you hanging.

I’ll always follow up with clear-cut instructions on how and when to exit the position when it’s time.

I look forward to helping you achieve financial success in my Dynamic Fortunes service.

Stay tuned for part five of my Optimize Your Options video series.

Thanks for tuning in!