a few quick questions.

Discussion in 'Index Futures' started by vladiator, Oct 17, 2002.

  1. What kind of transactions costs are there in the options mkts?
    How much would a straddle position cost (round trip, say 10 contracts each leg (1000 shares?)) for options on a large cap stock (say IBM or BBY). Just a ball park figure.
    How's the liquidity there? Can I expect to be able to open/close positions relatively quickly? Does one often get price improvement there?
    Thanks in advance.
  2. depends on broker.ib $1 per contract each way.10 contracts = $10
    liquidity good on big stocks.
    no problem closing positions.
    get price improvement only by accident.
  3. Thanks. But if I understand you correctly, you are speaking of the fee, I was more after the spread I'd lose on the round trip.
    Any idea?
    Thanks again.
  4. I just realized that I accidentally started this thread in the futures section. sorry guys, I meant to do it in options :)
  5. Spreads on a stock like IBM are minimal...