Covered Calls at Charles Schwab: Takeaways
• Charles Schwab allows covered calls in most account types, including low-risk accounts such as cash and custodial accounts.
• Schwab charges a low cost for covered calls, with a per-contract fee of $0.65.
• Schwab’s platforms include easy tools to create and manage covered call trades.
If you want to trade covered calls at Schwab, you’ll find plenty of helpful features. The broker provides education, platforms, and trading tools to help you earn income from your stock holdings by selling call contracts.
Covered Call Availability?
Schwab offers covered calls on all of its brokerage accounts once approved. Getting approval to trade covered calls is easier than for most other option strategies at Schwab.
Schwab Covered Calls Cost
The price of selling calls at Schwab is the same as buying them. There are no commissions on option trades, only a per-contract fee of $0.65.
The $0.65 charge applies to both buying and selling. This means you’ll pay when opening a covered call and again if you close it before expiration.
There is no fee if you let the contract expire. You also won’t be charged if the option is exercised.
Free Charles Schwab Account
Open Schwab Account
Schwab Covered Calls Minimums and Maintenance Fees
Schwab accounts have no maintenance fees, and you don’t need a set balance. The only requirement for covered calls is owning 100 shares of the stock you want to sell calls against.
Required Risk Level
Schwab has several risk levels for option trading, from Limited Risk to Unlimited Risk. Covered calls are considered the lowest risk.
Because covered calls are seen as safer, almost all Schwab customers can use this strategy. According to Schwab’s customer service, covered calls only require Level 0 approval. Very few clients are denied this level.
Account Types for Covered Call Trading
Because covered calls are low risk, they are available in nearly all Schwab account types. Even accounts with option restrictions, like custodial and cash accounts, can still use this strategy.
Is Schwab Good for Covered Calls?
Schwab is a strong choice for covered calls. It offers many services and tools that make it one of the top brokers in the country. Here are some of the main points.
Schwab is affordable, offers a wide variety of investments, and supports many account types. Its platforms range from simple to advanced, giving investors the right level of control for their needs.
Free Charles Schwab Account
Open Schwab Account
Updated on 1/1/2026.
Continue Reading