IB Options Quantity

Discussion in 'Retail Brokers' started by cmk, Jul 26, 2005.

  1. cmk


    I want to buy 100 call options, is this entered in the quantity as "1" or "100". I just want "the right to buy 100 shares", but the default came up as 1 in the quantity so I dont know if that means 100 or just 1 share.

  2. bl7077


    1 standard call option contract is for the right to buy 100 shares. I am not sure you should be trading if you don't know that.
  3. cmk


    The pit I am familiar with and spend a good chunk of my days 1 contract means 1 contract.

    I am not sure you should be posting when you don't know who is on the other side of things.

    None the less, thanks for the info.
  4. def

    def Interactive Brokers

    To be specific, you DON'T want to be buying 100 call options. You want to have the right to buy 100 shares which = 1 call option for the US equity markets.

    Keep in mind that the multiplier (100 in this case) can vary from product to product and thus you should read the contract specs of the product before you trade. For example in Hong Kong, HSBC has a multiplier of 400 while PetroChina has a multiplier of 2000.

    Another thing you can look at is the contract description via the IB TWS. If you right click on a symbol line, there is a choice for description. A box comes up with details.
  5. cmk


    Thank you sir
    Equity options are a new realm to me.

    The multiplier is 100 so I am all set buying say 5 contracts for 500 shares.

    On another note, when viewing the option chain, the price for the strike i want to purchase keeps changing, why cannot I not submit my order? (I get the can't submit to 9:30 et message). I am not well versed in how these things trade electroniclly, but who is trading these right now? I don't see any bid or asks in the market depth / book trader.
  6. def

    def Interactive Brokers

    the market is closed right now and thus you can't submit an order.
  7. cmk


    So why does the last price keep changing? Went from 1.85 to 1.90 1.95, 2.00, and 2.05 and now back at 2.0.

    And can you explain the margin requirement? If I am only buying and not writting anything why would this margin check give me any number?
  8. def

    def Interactive Brokers

    I assume you're not using the demo and am not sure. I popped up IBM and haven't seen any change. Nevertheless, it could be a reply of the tape or something going on behind the scenes.

    The margin requirement on a long call will be the premium. There always is a requirement.
  9. cmk


    The margin requirement is way higher than the premium on this sale.

    Calls are selling at 1.85 as of this morning (they changed again for some reason overnight), with a multiplier of 100 i would imagine total premium would be $185? Why does the margin check state a margin requirement of over $600 is required and a maintenance margin of over $600 is required?

    And why on EARTH would IB be "replaying" the tape after hours? Something with this whole IB system seems a little strange to me.
  10. def

    def Interactive Brokers

    what product are you looking at?
    #10     Jul 27, 2005