IB's options rates

Discussion in 'Retail Brokers' started by Sky123987, Jan 4, 2008.

  1. 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.
     
  2. wenzi

    wenzi

    Options and equities are two different animals. equities do not have IV
     
  3. 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
     
  4. wenzi

    wenzi

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

    Tums

    no need to bet.

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