Use access key #2 to skip to page content.

What broker to use to buy options

Recs

4

April 28, 2010 – Comments (7)

Does anybody have a place where you can buy 50 or 100 options contracts for a commission of less than $30? There are puts I want to buy that cost .05 or .10, but the commission for them would add about 15 or 20% to my cost basis, with the broker I use. Can anyone help?

7 Comments – Post Your Own

#1) On April 28, 2010 at 3:08 PM, leohaas (32.16) wrote:

I cannot help (my broker charges $14.95 for 10 contracts).

But your post brings up an intriguing question: which company is about to fail? Feel free to elaborate (of course after you have established your position)...

Report this comment
#2) On April 28, 2010 at 3:16 PM, FleaBagger (29.46) wrote:

It's public knowledge that Maguire Properties (MPG) is circling the bowl, but reverse-pyramid swamis have got their minions to bid it up to about $4 in hopes that the economy is going to recover so much that a 14x debt/EBITDA ratio will no longer matter. So go ahead and buy your put position before I find the right broker. Actually, I already have a large October 2.5 put position, but I was thinking about getting more aggressive with my timing while it's still cheap.

Anyway, I don't need the June 2.5 puts to become ITM, I just need them the stock to tank to around 3 halfway between now and expiration. Then what I bought for .05 (or even .10) I can sell for .25 or .30. The October ones I keep in case it hits 1. 

Report this comment
#3) On April 28, 2010 at 3:17 PM, YodaBuffett (< 20) wrote:

Does etrade have them for $10?  I haven't looked in a while.

Report this comment
#4) On April 28, 2010 at 3:41 PM, ChrisGraley (29.70) wrote:

http://www.interactivebrokers.com/en/p.php?f=commission

Report this comment
#5) On April 28, 2010 at 3:54 PM, leohaas (32.16) wrote:

Thanks for explaining. I will not play this with real money (but I have opened a thumb down on MPG in CAPS, based on this info).

Good luck.

PS: You may want to stay away from the June 2.5 puts since open interest is virtually non-existing. Even for October your order for 50 or 100 contracts would be a market mover.

Report this comment
#6) On April 28, 2010 at 5:00 PM, FleaBagger (29.46) wrote:

Thanks, Graley. That's $25 for 50 contracts at <.10 premium, if "premium" means what I think it means. I looked, but I didn't see anything about account minimums on that site, so it's in the running, although I won't switch if I think this is the last trade where I'm going to want to buy 50+ contracts.

Can anybody beat Graley's IB?

Report this comment
#7) On April 28, 2010 at 5:07 PM, FleaBagger (29.46) wrote:

leo: that's what GTC limit orders are for. With TOS (I have yet to test this, but I'm pretty sure) they can fill over several days and you pay only one commission.

Report this comment

Featured Broker Partners


Advertisement