[This post is written and copyrighted by FIRE Finance (http://firefinance.blogspot.com).]In Nov 2006 we had written about Sharebuilder offering options trading. Looks like Firstrade is going the same way. We received a note from Firstrade saying that they have launched a new feature called "Complex Options Trading Platform". This will allow their customers to place Spread and Straddle Option Orders online for only $6.95 per trade, plus contract fees.
Options are extremely versatile securities that can be used in many different ways such as generating income, hedging positions, or speculating. Having the ability to enter Spread and Straddle orders online greatly increases an investor's flexibility while reducing cost.
However it is to be noted that options involve risks and are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses. Options trading are subject to Firstrade approval. Multi-leg option orders incur contract fees on each leg. Please read Characteristics and Risks of Standardized Options before investing in options.
You can apply for options privileges by downloading the form from Forms Download Center, printing, completing and submitting an Options Application & Agreement.