Option Assignment Fee is per contract ?

Discussion in 'Options' started by lugui, Jan 9, 2018.

  1. lugui

    lugui

    Lately, I had a position on AAPL,

    Long stock of 100 share
    Long 170 Call x 1
    Short 172.5 Call x 2

    AAPL expired at 175, and when I checked the statement, I got charged for three times the assignment fee. I then talk to the trading desk, and they also confirmed that assignment fee is charged on per contract basis.

    My question is whether assignment fee charged on per contract basis is an industry norm ?

    lugui
     
  2. sle

    sle

    What broker are you using?
     
  3. Robert Morse

    Robert Morse Sponsor

    The industry norm is per strike. At my last firm, we charged what we charge for a stock trade, because we had no process to charge per strike. Your broker can charge what they want as long as they disclose it.

    https://www.lightspeed.com/pricing/other-fees/
    Options Exercise/Assignment Fee $15.00

    Who is your broker?

    Bob
     
  4. spindr0

    spindr0

    Unless your broker has a special deal on assignment and exercise (for example, free at IBKR), you have should have two transactions to close. Exercise of your long 170 call results in buying 100 shares and assignment of the two short 172.5 calls results in the sale of 200 shares. IMO, sticking you for a 3rd commission is a rip off.
     
    sle likes this.
  5. lugui

    lugui

    It is Tradestation.

    lugui
     
  6. Robert Morse

    Robert Morse Sponsor

  7. Robert Morse

    Robert Morse Sponsor

    upload_2018-1-9_19-30-19.png
     
  8. sle

    sle

    Ha! I was not aware that there is such a thing - none of the brokers I’ve worked with ever charged me for it (actually, probably there was a flat fee regardless of size).
     
  9. ET180

    ET180

    IB does not charge an assignment fee beyond the usual commission.
     
  10. lylec305

    lylec305

    tradestation sucks!
     
    #10     Jan 9, 2018