Newbie question

I just opened an account with Thinkorswim. I tried to buy 100 Jan 08 puts today that were selling for $1.00. I thought I'd have to pay $100 + comissions, but when I hit the confirm and send button it said the cost was more like $1,000 + comissions. What's going on?

 

You fella's want me to handle this one?

 

Sure, give it a go, best way to learn IMO....then MTE will be along to make any corrections

 

Well, I'm only feeling relatively confident cuz' Greek's ain't involved..........

 

You boy's quit funning and answer the poor schmo.....

 

I'm just glad he had enough in the account to cover it.

With all the stuff you guys give me about trading without knowing greek from sicilian, I can't believe everyone's going so easy so far..................

 

Just curious Ace but WHY did you think you would have to pay only $100 + commish?

 

Like he said, they were selling for a $1, so 100 x $1 = $100......right?






by the way, ace, 100 contracts @ $1 would be $10,000,
not $1,000.

Is this April 1st?

 

Oh...forgot that the price quoted was per share and that each contract had 100 shares.

 

Oh wow...I just realized that if I only wanted to spend $100 + comissions like I originally thought, I'd only be able to buy one contract...

What's the average size of an option trade? I know one contract must be the minimum...