Buying back challenged side of Iron Condor, and leaving non challenged side open

Discussion in 'Options' started by Adam66639, Oct 17, 2017.

  1. Last I checked, IB was doing this. I'm with ETrade and they recently made the change (although, it's under .10 with them). It' freaking awesome for legging out of credit spreads or when the spread is on different exchanges.
     
    #11     Oct 17, 2017
    JackRab likes this.
  2. Pekelo

    Pekelo

    Yes at certain brokers like TDAmeritrade closing the options under 5 cents is free of charge.
     
    #12     Oct 17, 2017
  3. Adam66639

    Adam66639

    Simply not true. Any trade with TDAmeritrade will cost you $3 a contract, that's a fact.
     
    #13     Oct 17, 2017
  4. Go here:https://www.tdameritrade.com/pricing.page then click options and you should come across, a paragraph, about no commissions on nickel buybacks.
     
    #14     Oct 17, 2017
  5. Adam66639

    Adam66639

    I appreciate you sending the link. I trade on the thinkorswim platform using TDAmeritrade as the broker. Unfortunately, they are still charging me $3 a contract to close out of a worthless vertical put spread (buy back that is; I sold to open). The website suggests that should not be the case, so I will have to call them tomorrow and see what's up.
     
    #15     Oct 17, 2017
  6. JackRab

    JackRab

    That's because you closed out the total spread, so including selling the long? Only the buy-back of the short is free of fees...
     
    #16     Oct 17, 2017
  7. Adam66639

    Adam66639

    My apologies for continuing to say $3 per contract (it's $1.50 per option contract, so $3 for the spread).

    And, yes, the buy-back of the short would still cost me (so my trading platform is suggesting). I will be calling them tomorrow to clear this up. Again, thank you to Superstar2317 for providing the link. I realize that I should know that exists, but I guess this is the first time I am experiencing having to CLOSE a worthless leg (or at least considering closing it).
     
    #17     Oct 17, 2017
  8. ironchef

    ironchef

    May I ask your rationale of IC NFLX? The stock practically doubled in 1 yr, won't it be better to buy call options or short puts?

    For tech stocks in general, the past 2-3 years, if it were me I want to trade the big moves.
     
    #18     Oct 18, 2017
  9. Adam66639

    Adam66639

    Trading slightly bullish IC on NFLX. Risk defined, high IV trade. Typically trade these range bound, risk defined condors about 40 days from expiration.

    These are not strictly based on price of he underlying. The strike prices that I sold at produce a very wide spread, and there is a high probability that the underlying stays within the spread.

    Trade was profitable by the way.
     
    #19     Oct 18, 2017
  10. I just got off the phone with the TD trade desk and they told me any option position worth $.05 or less they will cover the base fee to close but you still get charged the price per contract.
     
    #20     Oct 18, 2017