Merrill Edge charges $0.65 per options contract with no base commission. There is no exercise or assignment fee. The MarketPro platform supports options trading for all standard strategies, and BofA Securities (Merrill Lynch) equity research is available for analyzing the underlying stock before entering an options position. Merrill Edge is suitable for moderate options traders — primarily those who also bank with Bank of America and want to keep their accounts consolidated.
Merrill Edge Options Fees (2026)
| Fee Type | Merrill Edge | E*TRADE | Schwab | Fidelity |
|---|---|---|---|---|
| Per-contract fee | $0.65 | $0.65 | $0.65 | $0.65 |
| Base commission | $0 | $0 | $0 | $0 |
| Exercise/assignment fee | $0 | $0 | $0 | $0 |
| Preferred Rewards discount | None on options | N/A | N/A | N/A |
Important: Preferred Rewards free equity trades (up to 100/month at Platinum Honors) do not apply to options contracts. All options trades incur the standard $0.65/contract regardless of your Preferred Rewards tier.
Example: Selling 5 covered calls costs $3.25 ($0.65 × 5 contracts). Buying them back costs another $3.25. Total round-trip: $6.50.
Merrill Edge MarketPro for Options
MarketPro is Merrill Edge’s active trading platform, available as a web application. For options, it includes:
Options Chain: Streaming real-time bid/ask, Greeks (delta, theta, gamma, vega), implied volatility, volume, and open interest. Customizable column display. Filter by expiration and strike range.
Multi-Leg Order Ticket: Enter two-leg and four-leg strategies in a single order. Supports vertical spreads, straddles, and strangles through the combined order entry. Less streamlined than Power E*TRADE or thinkorswim for complex 4-leg strategies but functional for most traders.
BofA Securities Research Integration: BofA Securities equity research is available within MarketPro — including analyst ratings, price targets, and detailed company reports. Useful for selecting underlying stocks for covered call strategies or evaluating directional options plays.
Position Monitoring: Portfolio view shows unrealized P&L on open options positions, Greeks exposure at the portfolio level, and upcoming expirations.
What MarketPro lacks: Paper trading (simulated trading) is not available. Advanced scanning tools for options opportunities are more limited than thinkorswim or Power E*TRADE. thinkScript-style customization is not available.
Options Approval Levels at Merrill Edge
Merrill Edge uses a tiered approval system. Apply through your account settings:
| Level | Strategies |
|---|---|
| Level 0 | Covered calls only |
| Level 1 | Long calls and puts, cash-secured puts, protective puts |
| Level 2 | Spreads (vertical, calendar, diagonal), long straddles/strangles |
| Level 3 | Short straddles and strangles, ratio spreads, naked puts |
| Level 4 | Naked calls (requires full margin approval and significant account assets) |
To apply: log in → Help & Settings → Account Settings → Options Agreement. Complete the questionnaire covering trading experience, financial situation, and investment objectives. Level 0-1 is typically approved within 1 business day.
How to Trade Options at Merrill Edge
- Apply for options approval — Account Settings → Options Agreement
- Access MarketPro — available at merrilledge.com/investment/marketpro
- Use BofA Securities research — review analyst ratings and fundamental data for the underlying stock before selecting an options strategy
- Start with covered calls or cash-secured puts — defined-risk strategies that generate income on existing positions
- Monitor Greeks daily — use the portfolio Greeks view to manage theta decay and delta exposure
Who Options Trading at Merrill Edge Is Right For
Merrill Edge options trading is a good fit if:
- You already bank with Bank of America and want consolidated accounts
- You trade options as a supplement to a primarily equity portfolio — covered calls, protective puts, occasional spreads
- You value BofA Securities research for underlying stock selection
- You trade fewer than 20-30 contracts per month (low volume, so advanced platform depth matters less)
Consider Schwab (thinkorswim) or ETRADE (Power ETRADE) instead if:
- Options trading is a primary or high-frequency activity
- You want paper trading to practice strategies
- You need advanced scanning tools to find opportunities
- You want thinkScript customization (Schwab) or Power ETRADE’s Snapshot Analysis (ETRADE)
For more on the Merrill Edge platform, see the full Merrill Edge review, the Merrill Edge Preferred Rewards guide, and the comparison of E*TRADE vs Merrill Edge.
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