Frequently Asked Questions

What

What are outcomes?

What are options?

What is volatility?

What outcome is right for me?

What is the best time to buy an outcome?

What happens if I sell an outcome before it matures?

What should I do when my outcome expires?

What can go wrong when I buy an outcome?

What happens if everyone only trades options and not underlying assets?

What is the minimum investment amount?

Why

Why should I use Olive now?

Why has nobody else offered Olive's services?

Why is the account value shown in my brokerage account different from the outcome value shown by Olive?

How

How to get approved for Options trading

How can I use Olive?

How can I trust Olive?

How do I buy an outcome?

How do I choose an underlier?

How do I build a portfolio of outcomes?

How many outcomes should I have in my portfolio?

How do I know that Olive's outcomes are optimal?

How are my gains taxed?

How do I know that I am getting best execution?

General

Who should use Olive?

Is Olive a broker?

Can I use Olive if I do not understand options?

Can I use Olive for my IRA?

Do I need a margin account to use Olive?

Who are Olive’s competitors?

Should I buy and hold a stock rather than use Olive?

Is getting a high ceiling and a large downside cushion too good to be true?

Does Olive offer cryptocurrency underliers?

Does Olive allow naked short call options?

Who can I talk to when I have questions?

Glossary

  1. Accelerated upside means making more than the underlier’s gain at specific intervals.  For instance, an outcome that has accelerated upside with a gain multiplier of 3x and a ceiling of 30% would see a gain of 30% even when the underlier’s gain is 10%.  However, the outcome is capped at the ceiling so if the underlier’s gain is 40%, the outcome would have 30% gain.
  2. Ceiling refers the maximum gain for the outcome.  For instance, an outcome with a 20% upside ceiling would produce 20% gain even if the underlier experiences a 30% gain.
  3. Cushion refers the breakeven point for the outcome.  For instance, an outcome with a 15% downside cushion would incur no loss even if the underlier falls by 15%.  However, the outcome will start to incur loss if the cushion is breached.
  4. Greeks refer to key option statistics used to measure risk and sensitivity:
  • Delta measures how much an option's price is expected to change per $1 change in the price of the underlying security or index
  • Gamma measures the rate of change in an option’s Delta per $1 change in the price of the underlying stock
  • Rho measures the expected change in an option’s price per one percentage point change in interest rates
  • Theta measures the change in the price of an option for a one-day decrease in its time to expiration
  • Vega measures the rate of change in an option’s price per 1% change in the implied volatility of the underlying stock.
  1. Options trading level requirements vary by brokerage.  Olive's outcomes typically require a minimum option level that allow users to trade spreads and write covered puts (Learn More). Below are the different levels for TD Ameritrade. Olive would require Tier 2 Standard Margin or Tier 3.
  • Tier 1 - Covered: write covered calls and write cash-secured puts
  • Tier 2 - Standard Cash: buy calls and puts
  • Tier 2 - Standard Margin: create spreads and write covered puts + Tier 2 - Standard Cash
  • Tier 3 - Advanced: write uncovered options + Tier 2 - Standard Margin
  1. Outcome value over time means the historical performance of the outcome, assuming that the outcome is held to maturity.
  2. Probability of winning means the likelihood of breaking even and doing better than buying the underlier outright or making at least one cent, as implied by the option prices.

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