In this episode of Wealth Building with Options, Dan sits down with James Kostulias, Head of Trading Services at Schwab—where he oversees the end-to-end trading experience for clients at a firm averaging over 7 million trades per day for three consecutive quarters.
From Schwab’s latest Q4 Trader Sentiment Survey to the dramatic evolution from “options are too risky” to “options as risk management tools,” James shares an insider’s view of how retail trading has fundamentally transformed.
If you've ever wondered how serious traders think about hedging, income generation, and adapting to different market regimes, this conversation is packed with insights you can put to work in your own trading.
Listen, You'll Discover
Why traders are “bullish but cautious” right now — How Schwab’s Q4 Trader Sentiment Survey shows more than half of respondents are bullish on the market long term—while a growing majority (66%, up from 56%) also think it’s overvalued in the short term.How options fit a bullish-but-worried mindset — The specific ways traders are using stock replacement, covered calls, hedging, and other options strategies to stay invested while managing downside risk.The evolution of the retail options trader — How clients have shifted from viewing options as “too risky” to using them as core risk-management tools—and why 1 in 3 traders (versus 1 in 5 just two years ago) are now moving into complex options within their first year.From 90% traders to 50/50 — How Schwab’s live events have evolved from primarily attracting active traders to drawing equal numbers of long-term investors seeking to use options for income generation and risk management—a major shift in just 18 months.The education engine behind today’s options traders — A look at Schwab’s massive education effort: 30–35 hours of live webinars per week, extensive on-demand courses and articles, and 22–24 live events per year—all completely free to clients.Inside the numbers — Why Schwab’s position as the industry leader—averaging 7+ million trades daily—makes their client-behavior insights uniquely valuable for understanding real market trends.Investors vs. traders: why the label doesn’t matter — Why James believes you shouldn’t get hung up on whether you’re a “trader” or an “investor,” and how Schwab supports both ends of the spectrum with specialized desks and resources.24/5 trading: powerful tool or dangerous temptation? — The real pros and cons of extended-hours and 24/5 trading, how U.S. clients use it episodically while international clients leverage it as their primary trading window, and why trying to be “on” around the clock can work against you.What’s coming next for options traders at Schwab — How Schwab is preparing for spot crypto trading (first half of next year), expanded CBOE options hours (one hour earlier, 15 minutes later), and single-stock 0DTEs (expected in a Q1 launch window)—and why doing it “the Schwab way” means platforms, risk tools, and education must all be ready before launch.The one skill James thinks traders must develop — His biggest piece of advice: learn to adapt your strategies to changing market conditions instead of forcing one “favorite” strategy on every environment.Guest Bio – James Kostulias
James Kostulias is Head of Trading Services at Schwab, where he oversees the end-to-end trading experience for clients, including the award-winning thinkorswim suite of platforms. With more than 25 years in financial services—much of it with TD Ameritrade in retail, technology, and active trader leadership roles—James has been at the forefront of the industry’s evolution from “options are too risky” to “options as risk management.”
He has served as a board member and former president of the Wall Street Technology Association, previously sat on FINRA’s Technology Advisory Committee, and is a graduate of the SIFMA Securities Institute program at Wharton. He holds a B.A. in Business Administration from Rutgers University along with Series 47, 24, and 63 licenses.
Resources & Links
Schwab Q4 Trader Sentiment Survey – quarterly insights into trader sentiment, available at Schwab.comSchwab Trading Activity Index (STAX) – monthly insights into actual client trading behavior, available at Schwab.comLearn more about options education and coaching with Dan at MarketTaker.comOptions involve risk and are not suitable for all investors. Prior to buying or selling an option, investors must read Characteristics and Risks of Standardized Options (ODD) which can be found at https://www.theocc.com/company-information/documents-and-archives/options-disclosure-document
Don’t trade with money you are not prepared to lose. Anything discussed on this show is intended to be generalized information and not intended to be a recommendation to buy or sell any security. The host and guests are not familiar with listeners’ specific situations. For trading information relevant to your specific needs, speak with a licensed broker or advisor.
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