Obscene options cancel/modify fees

Did you factor in the execution credits given???

 

Yes, I know there is a credit, but its 20 cents a contract up to a MAX of 1.20.

So I happened to do a small trade the other day where I cancelled once and bought 2 contracts. Net cost to me was 70 cents for the cancel. Don't know why it was 70 and not 80 cents. (1.20-.40)

I resent being ripped off, and therefore do not participate in bidding and offering options unless I have to to hedge something.

 

so your total cost of the trade was .70? (net after loss?) or.....

Just curious.

 

Right, you get credits, but if you're trying to make a market, you're modifying a lot more then you're executing.

 

I'll be the 1st to admit I am green on options. Just something I never cared much for. (Aside from futures options) Just wasnt into all the SUPER deluxe spread and stuff. Now I am getting a fever for it.... Courtesy of Think Or Swim. Opened an account with them on a fluke, and have been blown away by the level of educational simplicity....

 

yeah it's a rip off... I try and get the best fill so I cancel and modify a lot...

BOSX only charges 10 cents for a cancel btw... better off routing there first (if you use IB)...

- mnx

 

Perhaps it is a blessing in diguise? Daytrading options has to be the hardest game in town. IMHO

 

I've never heard of an options daytrader. The spreads and commissions on them make it practically impossible..

Example, if the spread's 10 cents (Which is pretty typical), you're already 10 cents in the hole. Now, assuming $1 / contract (which is fairly low, most ppl pay a lot more then that), you're another 2 cents in the hole (1 on the buy, 1 on the sell). If you're doing an ATM option, delta's around .5, and if the option is expiring soon, you have to worry about theta (intraday theta is fairly low, but that might be another cent, depending on how close it is to expiration).

so, with 13 cents for spreads, commissions, and time decay, you need the stock to move favorably 26 cents to just break even.

Add in the fees for cancel/modify, and just forget about it.

The only way to profit day trading options is to be the market maker, no rediculous cancel/modify fees, and you're on the favorable side of the spread.

 

I pay commission as low as IB in Ameritrade without cancellation fee. Nobody pays 9.99 + 0.75 / contract unless you are very new to option trading.

 

i bet you 100-1 you don't pay 75 cents a copntract 1 min for no vol requirments?i've seen few if any that will match the $1 min