TD Ameritrade, Inc. ("TD Ameritrade"), a broker-dealer subsidiary of TD
Ameritrade Holding Corporation (NYSE: AMTD), will offer retail investors
and independent registered investment advisors (RIAs) the ability to
effective Monday, March 18, 2013. These innovative new option contracts
are 1/10 the size of a standard option contract and were created to
respond to the evolving needs of individual investors and advisors who
utilize options as part of their trading strategy.
TD Ameritrade is the leader in retail options trading, and nearly 40
percent of its client trades in the quarter ended Dec. 31, 2012, were in
derivatives, including options. The availability of mini-options will
benefit this client base in a number of ways. For example, investors who
hold positions of less than 100 shares in higher-priced securities such
as Apple (AAPL), Google (GOOG) and Amazon (AMZN), will now be able to
write covered calls or purchase protective puts against these shares
where previously this was not possible. In addition, they will be able
to buy mini-options on these higher-priced securities that were
cost-prohibitive in the past.*
"We're pleased that TD Ameritrade is among the first to offer access to
this innovative new product," said Steve Quirk, senior vice president of
TD Ameritrade's trader group. "Providing our clients with education
about new products, paired with the best in options trading technology
is what led thinkorswim to be recently named the #1 options platform by Investor's
Business Daily.** Mini-options will help to level the playing field
by allowing widespread access to options on some of the most popularly
TD Ameritrade will host a free webcast for all investors who are
interested in learning more about the potential benefits and risks
associated with mini-options on Monday, March 18, 2013, at 9 a.m. ET.
For more information or to register, click
here. An archived version of the webcast will also be available
online following the initial broadcast.
TD Ameritrade Institutional will also host a free webcast for
independent RIAs on Thursday, April 4, 2013. For more information or to
attend the webcast, please call 866-547-8431.
To learn more, advisors can call 800-444-6100 or visit www.tdainstitutional.com.
Options are not suitable for all investors as the special risks inherent
to options trading may expose investors to potentially rapid and
substantial losses. Before trading options, please read Characteristics
and Risks of Standardized Options.
A covered call strategy can limit the upside potential of the underlying
stock position as the stock would likely be called away in the event of
substantial stock price increase.
The protective put strategy provides only temporary protection from a
decline in the price of the corresponding stock. Should the put expire
worthless, the entire cost of the option would be lost.
*Commission, exercise and assignment fees are the same as standard
option contracts. Visit our pricing
page for more information.
Option trading leadership claim based on analysis of publicly available
competitor data concerning number of retail options contracts traded and
options daily average revenue trade levels.
**TD Ameritrade (and its thinkorswim platform) was evaluated against 16
others in the Investor's Business Daily Best Online-Brokers
review, January 25, 2013. thinkorswim was named best in the categories
of Options Trading Platform, ETF Choices, Educational Resources and
Mobile Platform/Trading. TD Ameritrade was named among the best in the
categories of Research Tools, Portfolio Analysis & Reports, Investment
Research, Educational Resources, and Equity Trading Tools. Read
Security symbols mentioned are for illustrative purposes only, and
reflect some of the securities for which mini-options are available in
the market. This is not a recommendation to trade any specific security.
About TD Ameritrade Holding Corporation
investors and independent registered investment advisors (RIAs) have
turned to TD Ameritrade's (NYSE: AMTD) technology,
to help make investing and trading easier to understand and do. Online
or over the phone. In a branch or with an independent RIA. First-timer
or sophisticated trader. Our clients want to take control, and we help
them decide how - bringing Wall Street to Main Street for more than 36
years. An official
sponsor of the 2014 and 2016 U.S. Olympic and Paralympic Teams,
TD Ameritrade has time and again been recognized
as a leader in investment services. Please visit TD Ameritrade's newsroom
for more information.
Brokerage services provided by TD Ameritrade, Inc., member FINRA (www.FINRA.org)
Director, Communications & Public Affairs
Jeff Goeser, 402-597-8464
Relations & Finance