IB's options rates

I'm trying to calc if it is cheaper to trade options or to trade the actual underlying equity. The follow is IBs comissions for options. http://individuals.interactivebrokers.com/en/accounts/fees/commission.php?ib_entity=llc


The question that I have is, is your premium normally < 0.05, > 0.05 to 0.10 or > 0.10... I have never traded optoins before so I'm not really even sure but if most of the optoin order are < 0.05 then it would make sense on a bang for your buck to trade options.

 

Options and equities are two different animals. equities do not have IV

 

two different animals... if youre holding positions for 4 to 5 hours, I'd bet there is little difference when you look at the outcome from the option vs the underlying equity

 

Have fun. Let us know how it works out for you.

 

no need to bet.

if you understand option pricing theory, everything can be calculated and extrapolated.