Broker for 100 LEAPS

[UVXY20]

Any cheap brokers for 100 long EQUITY LEAPS that wont screw me too much on the spread and will charge me less than .50 a contract commission and will automatically assign if ITM at expiration (and not charge a fee). 75% margin would be nice, too. (Not interested in RH or WB, btw.)

 

[Robert Morse]

Help me understand. The spread on Leaps are based on MM markets, not your broker. You want to hold these for YEARS and your concern is the commission and assignment fee? And, to my knowledge, Leaps are not marginable. https://www.theocc.com/clearance-and-settlement/clearing/equity-and-etf-leaps.

 

[FSU]

If you are buying 100 leaps, the least of your concern should be whether you are paying .45 or the standard .65 in commissions. Thats a difference of only $20. Many other things you should consider with a broker other than saving $20

All brokers will automatically exercise (not assign as you said as you are long them) in the money options at expiration. If you don't have the capital to hold the stock, they options will generally sold on expiration day by the broker.

The spread on the options is determined by the Market Makers, not the broker. Which exchange the order is routed, may affect your fills, though.

Although technically options with an expiration over 9 months can be 75% marginable, I don't know of any brokers that actually do this for a Reg T account. A PM account would require less capital.
Equity LEAPS Options Product Specifications (cboe.com)

 

[mervyn]

For large order execution, I like Fidelity very much, their fills are excellent.

I don’t know why you’d want to margin-able but you can sell calls, effectively a poor man covered call strategy.

 

[Robert Morse]

What makes you think they are part of the liquidity you find?

For large order execution, I like Fidelity very much, their fills are excellent.

 

[Coin Flip]

Any cheap brokers for 100 long EQUITY LEAPS...

Finally someone on EliteTrader who is trading huge size. I like it.

 

[Robert Morse]

Sarcasm or do you think 100 is Huge??

Finally someone on EliteTrader who is trading huge size. I like it.

 

[UVXY20]

If you are buying 100 leaps, the least of your concern should be whether you are paying .45 or the standard .65 in commissions. Thats a difference of only $20. Many other things you should consider with a broker other than saving $20

All brokers will automatically exercise (not assign as you said as you are long them) in the money options at expiration. If you don't have the capital to hold the stock, they options will generally sold on expiration day by the broker.

The spread on the options is determined by the Market Makers, not the broker. Which exchange the order is routed, may affect your fills, though.

Although technically options with an expiration over 9 months can be 75% marginable, I don't know of any brokers that actually do this for a Reg T account. A PM account would require less capital.
Equity LEAPS Options Product Specifications (cboe.com)

Thanks all. Last question: Is automatic exercise any different or are there any caveats for LEAPS ITM puts rather than calls. Would I need extra cash in the account?

 

[newwurldmn]

Finally someone on EliteTrader who is trading huge size. I like it.

LARPer

 

[newwurldmn]

Thanks all. Last question: Is automatic exercise any different or are there any caveats for LEAPS ITM puts rather than calls. Would I need extra cash in the account?

leaps are no different than non-leaps.