Getting exercised

Discussion in 'Options' started by failed_trad3r, May 10, 2010.

  1. Does it cost commissions when getting exercised? for example if commission to buy stock is 10 euros, and you wrote a put, and get exercised the put.
    Then do you have to pay commission to buy the stock?:eek:
    Because my broker told me exercise is free.
  2. dtan1e


  3. No pain, no gain!
  4. Brain calisthenics require a lot of thought. :(
  5. Your broker may have meant that if you exercise an option there is no charge, but you still have to pay the commission to buy or sell the stock. And the correct terminology is, if you are long an option you exercise it, if you are short you are assigned. Here is what thinkorswim has on the subject:

  6. If this is so, does it make more sense to write only 1 option of $100 instead of 100 of $1? Because you could get assigned 100 times with 100 times commission? By the way if one guy exercises 10 options, and you wrote 10, do you get asigned all 10 at same time, as if its one order? because if would suck if you got assigned 1 option, then another, then another. its like death by a thousand commissions.
  7. It's better to right one option than to wrong any number of options. Even worse is getting exorcised! Feeling like Linda Blair yet?
  8. Im serious!

    Also, why are european options american style? That makes no sense, why arent they european style? You know, europe? :D
  9. The CBOE was established the same year "that movie" hit theaters. The early-70's....gotta love' be 1 year old again, those were the days. :eek: :cool:
  10. :eek:
    #10     May 10, 2010