Options

Know Your Options
Many investors choose to make options a part of their trading strategy. Options offer a wide variety of possibilities for the investor who is looking to realize investment goals and broaden their trading opportunities. Options can also help investors gain greater control over the performance of their portfolio.

Using Options
Some investors use options like insurance. For a period of time, they can secure the value of their current holdings by purchasing an option contract that offsets future market downside risk. More aggressive investors, comfortable with anticipating future market movement, can capitalize by purchasing an option that insures their profit when, and if, their forecast is proved accurate.

Providing you with Options
As a BMO InvestorLine client, you’ll be pleased to know that we’ve enhanced our online options offering to you. You’ll discover our order entry screens have been improved for greater ease of use. We’ve introduced option chains for the investor who wants to see all available options on a stock. And for those wanting to learn more about options, we’ve enriched the online educational content.

Note: Effective June 2008, both Canadian and U.S. Equity Options automatic exercise threshold price for in-the-money options has changed from $0.05 to $0.01.

To learn more about Options sign into your account or visit the web sites* below:

    Canadian Options Resources     U.S. Options Resources
  Montreal Exchange - Canada’s options exchange
Equity Options Reference Manual (PDF)
Options FAQ
  Chicago Board Options Exchange (CBOE) "The leading U.S. Options Exchange and portal"

*Links to other web sites or references to products, services or publications other than those of BMO InvestorLine at this web site do not imply the endorsement or approval of such web sites, products, services or publications by BMO InvestorLine