a few quick questions.

V

vladiator

What kind of transactions costs are there in the options mkts?
How much would a straddle position cost (round trip, say 10 contracts each leg (1000 shares?)) for options on a large cap stock (say IBM or BBY). Just a ball park figure.
How's the liquidity there? Can I expect to be able to open/close positions relatively quickly? Does one often get price improvement there?
Thanks in advance.
V.
 
Originally posted by vladiator
What kind of transactions costs are there in the options mkts?
How much would a straddle position cost (round trip, say 10 contracts each leg (1000 shares?)) for options on a large cap stock (say IBM or BBY). Just a ball park figure.
How's the liquidity there? Can I expect to be able to open/close positions relatively quickly? Does one often get price improvement there?
Thanks in advance.
V.
More...

depends on broker.ib $1 per contract each way.10 contracts = $10
liquidity good on big stocks.
no problem closing positions.
get price improvement only by accident.
 
Originally posted by vhehn


depends on broker.ib $1 per contract each way.10 contracts = $10
More...
Thanks. But if I understand you correctly, you are speaking of the fee, I was more after the spread I'd lose on the round trip.
Any idea?
Thanks again.
 
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