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What broker to use to buy options



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 (30.08) 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)...

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#2) On April 28, 2010 at 3:16 PM, FleaBagger (27.56) 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. 

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#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.

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#4) On April 28, 2010 at 3:41 PM, ChrisGraley (28.62) wrote:

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#5) On April 28, 2010 at 3:54 PM, leohaas (30.08) 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.

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#6) On April 28, 2010 at 5:00 PM, FleaBagger (27.56) 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?

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#7) On April 28, 2010 at 5:07 PM, FleaBagger (27.56) 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.

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