Stock Option Trading Will Drive Growth At
Charles Schwab
The Dynamic Wealth Report
March 29, 2011
by Corey Williams, Editor
Talk to Chuck… It’s Charles Schwab’s (SCHW) award winning advertising
campaign.
If you spend any time watching market news or golf, you’ve undoubtedly
seen (or more likely memorized) this ad slogan by now.
I have to admit I like the commercials.
-------------Sponsor-------------
Where Can You Turn $300 Into $1.3 Million Right Now?
Our own small-company specialist, Robert Morris, has found a
way to 'sniff out' tiny penny stocks on the verge of a major breakout. And
the timing for this has never been better.
You see, the system takes advantage of an obscure SEC regulation that
sends penny stock prices through the roof.
We've seen some stocks gain 852%... 5,450%... even 17,496% in no time
flat.
Click here
for the details...
-----------------------------------
The commercials are shot using a unique rotoscoping animation technique. Each ad is filmed with real people and then digitally animated. It’s a
cool effect that’s been a huge advertising success.
In fact, Charles Schwab has more than eight million brokerage accounts with
$1.6 trillion in client assets under management. Clearly, they’re doing
something right.
The problem is “Chuck” may have spent a little too much time and effort
on advertising. He dropped the ball on trading technology. As a result,
Schwab’s online trading platform is outdated and cumbersome compared to
competitors like TD Ameritrade (AMTD), E*TRADE (ETFC), and
Bank of
America (BAC).
That’s a huge problem for Schwab when they’re vying for customers who
want the best tools and services.
Last week Chuck finally did something about it. They bought equity,
options, and futures trading company optionsXpress (OXPS) for $1
billion.
Better late than never, I guess. TD Ameritrade made a similar deal in
2009. They bought options broker thinkorswim for $606 million.
The move gives Schwab’s online trading platform a major upgrade. And
just as importantly, it will give their clients a much easier way to
trade options.
That’s great news for Schwab’s clients.
And it’s even better news for Chuck…
Option trading is more lucrative than stock or mutual fund trading. Schwab makes more money each time a client trades an option. And
investors who use options typically trade more frequently than stock
traders.
In fact, analysts at Macquarie said “if Schwab's clients each did 10
extra trades a year, Schwab could collect $50 million in additional
annual revenue.”
Clearly SCHW has some upside as they bring the optionsXpress trading
platform online and customers begin trading options more frequently.
What’s more, option trading is growing faster than stock, mutual fund,
or ETF trading. If Chuck wants to grow, they need to have a trading
platform built for options trading.
It’s not surprising that stock option trading is the hottest growth
story in the investment world.
What’s surprising to me is that more investors don’t trade options!
In just the last few years, options trading has undergone major changes.
As a result, options trading is now much more accessible to retail
investors. The costs are lower and the markets are more liquid than
ever.
We’ve also seen new products like index options, LEAPS, and CBOE's VIX
products.
And to top it off, better training and education is available online for
investors to learn how to trade options. The Options Industry Council
has a great website chock full of great training tools. They offer
everything from the basics to training on advanced options trading
strategies.
If you don’t have the time or energy to learn how to trade options, you
can still get in on the action. In fact, I’ll do all of the heavy
lifting for you.
Click here to see how you can piggyback my option
trading.
And take a closer look at Charles Schwab for your portfolio. I think
their acquisition of optionsXpress is going to propel a new wave growth
and gives more investors a reason to “Talk to Chuck”.
The resiliency of the Hong Kong market and other global companies IPO
success has made Hong Kong an IPO hotbed. Companies like Glencore
International, Ducati Motor, Prada, and Samsonite are clamoring for a
Hong Kong listing.
Share This Story:
Print
Page
Bookmark Us
Home | Whitelist Us |
Terms of Use |
Privacy Policy |
Contact Us | Security |
Site Map