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. V.
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.
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.
I just realized that I accidentally started this thread in the futures section. sorry guys, I meant to do it in options