The Latest Breaking News from SCHW

Shorting out-of-the-money (OTM) puts in Charles Schwab stock still makes sense. It allows investors who are long in the stock to make extra income as well as lower their average buy-in cost.

One of the online broker’s put options had a volume of 15,344 on Wednesday, 108.82x its open interest. I can think of at least three reasons why that’s the case.

Yesterday, with SCHW trading at 55.55, the May put option with a strike price of 52.50 was trading around $1.20. Traders selling this put would receive $120 in option premium. In return for receiving this premium, they have an obligation to buy 100 shares of SCHW for $52.50.

Charles Schwab stock rose Monday after it beat Q1 earnings estimates. M&T Bank, State Street report results following March bank panic.

Charles Schwab stock has tumbled 11% in the last month, making its put options very popular with investors who are shorting near-term out-of-the-money puts in an attractive income play.

Micron Technology and Charles Schwab were among the top S&P 500 stock performers on Monday. Expedia was a notable loser.

Calendar spreads are an option trade that involves selling a short-term option and buying a longer-term option with the same strike. Traders can use calls or puts and they can be set up to be neutral, bullish or bearish with neutral being the most common.

The financial firm gets caught in the turmoil caused by the Silicon Valley Bank.

The Nasdaq topped 12,000 as the market rallied ahead of the PCE inflation report. The IRS will likely cut EV credits for Tesla's entry-level Model 3.