How to Sell Covered Calls on Schwab

Complete guide to selling covered calls on Charles Schwab's platforms.

Options Approval

Schwab requires options approval:

  • Level 0: Covered calls only
  • Level 1: Cash secured puts
  • Apply online in account settings

    • Using Schwab.com

    Step 1: Access Trade Screen

  • Log into Schwab.com
  • Trade > Options
  • Enter symbol

    • Step 2: Select Option

  • Choose expiration
  • Select strike price
  • Action: Sell to Open

    • Step 3: Enter Order

  • Quantity: 1 contract per 100 shares
  • Price: Limit order recommended
  • Duration: Day or GTC

    • Using thinkorswim (Recommended)

    Access Option Chain

  • Trade tab > All Products
  • Enter symbol
  • Right-click strike > Sell > Single

    • Analyze Trade

  • Use "Analyze" tab
  • See profit/loss diagram
  • Check probability of profit

    • Schwab Tips

  • Use thinkorswim for analysis
  • Check "Covered" checkbox on web
  • Commission-free options trading
  • Good customer support for options