Ally Invest commissions for spread trades, straddles or strangles, options contracts, buying puts and selling calls, exercise and assignment fees.

Ally Invest Options Fees

Are you looking to trade options with an Ally Invest account? If so, you should read this article, which goes over all the relevant options-related commissions and fees you will encounter with Ally.

Ally Invest Options Commissions

Commission on options trades is $0 base and $0.50 per contract.

Covered Options Trades

A covered call is one of the most basic options strategies where you sell a call option and simultaneously buy an equivalent amount of underlying stock, which enables you to still participate in the stock’s upside until it reaches the call’s strike price and also offers you some downside protection in the call premium you collected. A covered call strategy on your Ally account would cost you a single option commission ($0.50 per contract).

Ally Options Trading

Two-Legged Options Spread Trade Commission

One of the more popular and complex options strategies is a two-legged options spread trade. This strategy involves buying a call option while simultaneously selling a call option for the same stock but with a higher strike price. This allows you to participate in the stock’s upside up until it reaches the higher strike price of the call you sold while also lowering your overall cost because of the premium you received from selling the higher strike call option.

With select pricing, Ally’s commission on this spread trade (where you purchase a single contract of each option) would be $1, consisting of a single $0 options commission plus $1.00 for the single contract of each leg ($0.50 per contract). If this seems lower than you expected a spread trade would cost it’s because even though you are trading two different calls with different strike prices, Ally only charges a single flat options commission, but the per contract charge applies to each contract of each leg.

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Ally Invest Options Exercise and Assignment Fees

If you want to exercise an option, you should be aware that Ally, charges a $0 exercise fee and a $0 assignment fee. These fees are, obviously, extremely low when compared to other brokers.

Regulatory Options Fees

A smaller part of the trading costs you incur will come from regulatory fees that are charged on options sales and passed through to the investor by the broker. These are relatively insignificant and amount to a few pennies per contract: ORF (Options Regulatory Fee) is 0.0404 per contract (buys and sells) and TAF fee is 0.00244 per contract (option sells only).

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