how many transaction fees does your broker charge for rolling over calls?

Discussion in 'Options' started by 1a2b3cppp, Apr 27, 2011.

  1. Say you're selling covered calls and buying them back and selling a future one (rollover).

    Do you pay a full transaction cost + contract fee for each of those? So like:

    Write first covered call: transaction cost + contract fee
    Buy back: transaction cost + contract fee
    Sell future call: transaction cost + contract fee

    Or do you get some sort of discounted rollover deal?

    If you get a discount, what broker do you use?
     
  2. Yes, you pay for each leg....No one gives a discount for rolling a position. You can just look for a new broker that charges less overall.
     
  3. I wonder if you need a new thread for each aspect of the same basic strategy. Makes it more difficult to help you in a holistic manner.
     
  4. You should be able to only pay one ticket charge for rolling if you do it as a calendar or diagonal, e.g. buy the near call, sell the far as a single transaction. Of course you would need to have the appropriate option trading level with your broker.
     
  5. Eliot, I don't know of any broker that charges per spread. Which one are you referring to?
     
  6. I'm talking about ticket charges. Like I think Schwab charges 8.95 ticket charge plus .75 per option contract. Let's say you buy back 10 calls, it would be 8.95 + 7.50. Then you sell 10 farther out it would also be 8.95 + 7.50. If you did it as a spread it would be 8.95 + 15.00 (two legs=20 contracts).
     
  7. The OP is off on another wild goose chase, looking for a broker who discounts a spread transaction.

    Another broker charges 75 cts per contract with no ticket fee. So 20 contracts (10 to close, 10 to open) would be 15 bucks, So even with his spread discount, he's still overpaying. Kinda myopic, eh?
     
  8. I see, sorry. I never traded in a retail account with ticket charges. I think your correct. The ticket charge is per order, not per side. All our clients have no ticket charges, only fee per option or share trades.