We need to drive out commission costs as low as possible without hurting our execution price. Nobody needs to be paying over $.75 per contract, I think it's outrageous to pay that price and a ticket-charge of $5.00. I am shopping to reduce my commission structor because it really matters to each Trader who desires to keep more profit. I am going to ask my Broker to reduce my price again, can anyone post what's a reasonable price to ask the Broker to reduce their Option Price down to? I want a decent platform but I don't like paying $85 each way to trade 100 contracts round-trip is $170 plus other fees. This website's price is cheap, do you have any experience with them? Commissions eat away your scalps, we do all the work, so why should we pay anything more than the best price we can get. http://www.eoption.com/index.html $3.00 plus $.10 per contract. 100 contracts is $3 +$10.00, let's get our price down low! I use to pay $1.25 years ago, $250 a round-trip ticket and now look how cheap prices have dropped. I am still looking to get my prices reduced, not trying to be cheap, just looking for the best price for us Traders.
To request lower commissions, you need to show volume. The more you trade, the lower you can get. What is your average trading volume per month? What is your average contract size? Do you want DMA or only smart routes? The commission structure is more complex than you think. 1245
http://www.mbtrading.com/commissions.aspx?page=Options with MB you can go as low as .15 per contract if u trade more then 250 contracts. I would guess that if you show volume you can negotiate a better price then advertised. Otherwise its Eoption, they have Sterling and real tick platforms if you want direct access and they negotiate on commisions
I am commission crazy as much as the next guy. So, lets do this dance one more time !! Sterling might have some big data fees. And if you go with eOption web, they have a really basic interface with no API to plug your trading tools. You'll be trading blind. MBT has tons of API options, but everything is "under development". Does anybody care to share stats on how often they get rebates from IBKR? Aren't most orders "marketable". Maybe it is compelling enough to pursue order execution methods that get you that rebate. Are marketable orders done at unfavorable spreads? It's end of the year. Would be great if you IBKR users check your execution stats and explain the type of trading you did to get those stats/rebates. Was it from IC selling, vertical buying, covered call selling? Optionshouse is incredibly simple. You trade any spread up to 15 contracts, your max commission is $15 bucks. Beyond that, you need to move over to the $12.50 + .15 cent per contract. They have the basic tools you need to be an effective Options trader minus all the clutter. I can manually "walk" my orders to get the best execution without cancellation fees.
A firm understands the difference between average price and marginal price, and knows that the average customer does not understand the difference between marginal price and average price. It highlight marginal prices because they attract customers looking for a deal, while it knows they would pay the average price and at "worse" (to the firm) the marginal price. So the firm sees free options in the mind, psychology, ignorance of the people, and monetize those options. They are monetized via the printing of words.
I love this, excellent ideas! Are any of you fine Option traders watching the money pour in to YHOO, HPQ, MSFT, TIF, TXN, (KKD is starting to do exactly what it did last time it flunked it's earning, from $19 to $26 based on their growth story in Latin America). KKD might go back up slowly, I have no idea why they keep getting a second chance. I would rather buy Calls on NTRI than Fat Donuts but KKD keeps on chugging along! I have a idea what to look for now that you have given me a scale to balance their ideas. Don't use Fidelity, it's platform will cost you more money, it's a horrible little piece of trash! The constant resetting of accounts and positions if you change your Month while entering the order is insane. My current broker is imploding each time I try to trade apple, it' lock's up and say's "Good Bye!" like AOL. Last week when I was trading apple during it's frenzy, it locked up over 100 times and I had to place orders premature because I could not get the program to open up again. Who has a strong reliable platform that can handle Apple's quotes and option prints that will not cause my platform to implode? Xandman, keep a eye on HPQ, YHOO and MSFT and TIF, YHOO was under massive buy pressure the last hour, two double VWAPs of 2 million at $38.14 She looks like she is heading to $40.00 and HPQ want's back to $30 and MSFT is begging to go to $40. I told you I had some WDC calls, they finally went nuts today, HPQ and YHOO and MSFT than TIF if your feeling risky my friend! Thank's again everyone for your ideas, I think I know where to go!
Thanks for the tip. I'm kinda pissed for missing the boat on msft. I bought it as a core holding and held for 9 months. The moment I sold it, it shot up.
Xandman, don't be mad! You have a chance to enter MSFT with Calls dated out to March-June. HPQ and MSFT are on sale today! My Options Amazon (They will expire worthless tomorrow, stock is being pinned.) CME March 2014 $80 buy $3.4 HPQ (March or May $27.00) $2.33 buy MSFT $37 YHOO $37 May bought $2.65 JPM $57.5 TIF $87.5 Feb $3.7 bought at $3.5 BAC May $15 DECK January $70 (They are based near my house, the employees told me they were kicking ass (Not inside, outside information at Starbucks)
I really don't wanna chase a run up. I'm already psychologically destabilized on that trade. If it goes counter, I'll second guess myself. There will be other trades. I think we are close to the end of the business cycle. I want to go long volatility and short directionally. Did some shorts on biotech calls. I may have some tough months ahead as the bull market continues , but it's worked out well for me like this before. From a global portfolio perscpective, I'm long just like anybody else.