Given the well-publicized woes of Charles Schwab, you might be forgiven if you did not think the company had $1 billion deal in it. But it has announced an eye-catching merger with optionsXpress, which will position Schwab much better in the options market.

The deal will generate about $80 million "in synergies, primarily from revenues," while generating about only $55 million added expenses, reports the Financial Times. Few lay-offs are expected. And few changes are expected to the online platform of optionsXpress, though we would expect some integration.

The options market has been seen as an area of growth in the retail trading industry. This will not measurably boost Schwab's total trading volume immediately. But it does allow it to enhance its status as a full-service provider of retail trade services. Competitor TD Ameritrade acquired thinkorswim, an options trading business, in 2009.

One issue is how profitable options trading will be in the long-term. There are many who think the industry is trending in the same manner as the equities trading industry did several years ago. As penny increments and similar changes take place, we could see margins compressed for options platforms. So you could argue that this deal was necessary for the long-term survival of optionsXpress. It has found a deep-pocketed parent. 

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