Ally Invest options lets traders buy and sell contracts on stocks and ETFs through Ally's online platform. It offers competitive pricing, educational resources, and advanced trading tools.
Ally Invest options operates like other online brokerages. Users open an account, deposit funds, and trade options contracts. Contracts represent the right to buy or sell 100 shares of a stock or ETF at a set price by a specific date.
Ally charges $0.50 per contract with no base fee. This is lower than many competitors. Trades execute within seconds during market hours. The platform supports complex strategies like spreads, straddles, and iron condors.
Ally's options platform includes several standout features:
Many traders assume Ally's options platform lacks sophistication because it's part of a bank. In reality, it competes with standalone brokers. Another misconception is that Ally doesn't support advanced strategies - it actually supports all standard options strategies.
Some also believe Ally's pricing structure is complicated. While it uses a tiered system, the $0.50 per contract fee is straightforward for most traders. For context, competitors often charge $1 per contract plus a base fee.
Let's say you want to buy a call option on Tesla (TSLA) expecting the stock to rise. You'd:
This would cost $2.50 ($0.50 × 5 contracts) plus the premium price of each contract.
Ally attracts traders who want:
Ally's options platform particularly appeals to intermediate traders who've outgrown beginner platforms but don't need the complexity of professional-grade systems. According to Ally's 2023 annual report, 32% of their active traders use options regularly.