How Do I Sell Options on Ally Invest?

Selling options on Ally Invest is a great way to make money and buy securities on the platform. The process is to find the stock or ETF you want to sell.

Enter the strike price and expiration date for the options you want to sell, and submit your order. If your option expires, it becomes worthless no matter where the security price is at the expiration date. Here's how to start selling options on Ally Invest.

Advanced Option Trading

To sell options on Ally Invest, you must access advanced option trading screens by completing an Options Application.

Options Application Approval

Follow these three steps once you have Options Application approval:

• Log in to your Ally Invest account.
• Select the stock or ETF you want to sell options from the Market Watch page (under Investing).
• Enter the strike price and expiration date for the options you want to sell using the order form Options (click Sell To Open if you're selling calls; click Sell To Close if you're selling puts).
• Ensure you have enough money in the account to cover all costs of selling the option (the premium).

Select Options You Want To Sell

At the top of this page, you'll find a drop-down menu that allows you to select one of two options: Buy or Sell. Select Sell.

Before you sell an option, you have to determine whether your trade will be a covered call or a naked put. It is vital to understand how the rights work in each case. The crucial part is understanding the definition of an option and how it compares to the stock.

Enter the Number of Contracts

• Select the option trade you want to place.
• Enter the number of contracts you want to trade and submit your order.

You'll get confirmation of your order almost immediately after you submit it. Then, all that's left is to wait until your order is executed or expires on its own. Remember, if your option expires, it becomes worthless.