BOX.. cancel fees & AH trading

Discussion in 'Options' started by iceman1, Feb 18, 2004.

  1. anyone been trading options on BOX...

    I have had good experiences so far.... the question is whether this is like a grand opening sale special, or whether these improved fills will continue. :p :p

    I have always thought the spreads on options were ridiculous, and unnecessarily wide without a valid reason therefor other than monopolistic practices by floor exchanges... JMHO.

    Another example of this overbearing practice is the scam of charging cancel fees on options but not on stocks by the exchanges (not by IB who is merely passing them on) Hopefully the BOX will remove this penalty. Any decent and objective lawyer or law professor knows this is not constitutional; yet it has not been challenged in court. One day soon I expect it will... if the CBOE continues this onerous practice which is clearly against any public policy and discriminates against all option participants, in favor of equity and futures traders. Period!

    Further... I would love to see the BOX trade equity options AH just like the underlying. Have written SEC about this issue in the past. I have yet to hear a valid reason why you can trade stock pre-open and AH with no problemo, but options on the very same underlying can't be traded except during regular market hours. This needs to be corrected.

    For example, earnings are released AH on the most volatile stocks (sometimes they release before open). If you have a position in such a stock subject to large swings... or any equity for that matter that trades pre- and AH.... and want to do a stock trade that evening, the powers that be say AOK!! But if you wish to hedge, or participate in any manner via option contracts in the very same stock... that's against the current practice.

    Perhaps the BOX will look into such a "revolutionary" concept as proposed here.. and thereby garner all option biz both pre and post markets. Of course that would mean standing up against the custom and tradition in the options markets which IMHO is wrong. It's time for a change. And, I bet there's more interest out there in such an idea than most would imagine! Just wanted to publish this idea on this forum and take a poll if anyone has opinions regarding this... as well as plant a seed on the above.