Broker for 100 LEAPS

Discussion in 'Retail Brokers' started by UVXY20, Jul 21, 2024.

  1. UVXY20

    UVXY20

    Any cheap brokers for 100 long EQUITY LEAPS that wont screw me too much on the spread and will charge me less than .50 a contract commission and will automatically assign if ITM at expiration (and not charge a fee). 75% margin would be nice, too. (Not interested in RH or WB, btw.)
     
    tradertweets likes this.
  2. Robert Morse

    Robert Morse Sponsor

    SimpleMeLike, nbbo, rb7 and 2 others like this.
  3. FSU

    FSU

    If you are buying 100 leaps, the least of your concern should be whether you are paying .45 or the standard .65 in commissions. Thats a difference of only $20. Many other things you should consider with a broker other than saving $20

    All brokers will automatically exercise (not assign as you said as you are long them) in the money options at expiration. If you don't have the capital to hold the stock, they options will generally sold on expiration day by the broker.

    The spread on the options is determined by the Market Makers, not the broker. Which exchange the order is routed, may affect your fills, though.

    Although technically options with an expiration over 9 months can be 75% marginable, I don't know of any brokers that actually do this for a Reg T account. A PM account would require less capital.
    Equity LEAPS Options Product Specifications (cboe.com)
     
    TrailerParkTed and newwurldmn like this.
  4. mervyn

    mervyn

    For large order execution, I like Fidelity very much, their fills are excellent.

    I don’t know why you’d want to margin-able but you can sell calls, effectively a poor man covered call strategy.
     
  5. Robert Morse

    Robert Morse Sponsor

    What makes you think they are part of the liquidity you find?

     
  6. Coin Flip

    Coin Flip

    Finally someone on EliteTrader who is trading huge size. I like it.
     
    qwerty11 likes this.
  7. Robert Morse

    Robert Morse Sponsor

    Sarcasm or do you think 100 is Huge??

     
  8. UVXY20

    UVXY20

    Thanks all. Last question: Is automatic exercise any different or are there any caveats for LEAPS ITM puts rather than calls. Would I need extra cash in the account?
     
  9. newwurldmn

    newwurldmn

    LARPer
     
    poopy likes this.
  10. newwurldmn

    newwurldmn

    leaps are no different than non-leaps.
     
    #10     Jul 21, 2024