Oh ok, didn't realize it was that simple. Thanks for the clarification. Regardless, $.10 isn't exactly that much ...
Well true but not so much cheaper. OX and TOS will give you $1.25 a contract if you do at least 10 so for volume it is close. Slightly more than IB but if cancel orders enough times it adds up. I tend to place a lot of spread orders to try and get filled and if I get no fill and the market moves I cancel them. At least for me those cancels would add up lol..
I was just doing some research on options, and noticed the ETFs seem to have strike prices that increment by $1 instead of $2.50. I guess I would probably need to understand ETFs better in order to understand why this is, but does anyone have a quick answer?
The reason that most stocks have strike increments of 2.5, 5 and etc is because there's not enough liquidity to warrant lower increments, with ETFs, on the other hand, the demand for options is high hence the liquidity is high and therefore it becomes feasible to have strike price increments of 1.
I've heard from quite a large number of traders (many claiming to have made/are making good money using the strategy) that Lord's book on collars and dynamic hedging is excellent (albeit a little more expensive than your average options text). It's been described as a very practical, step-by-step guide on how to trade collars/married puts. Have you read it? If so, why do you think it's 'crap'? Cheers daddy's boy