Buying back challenged side of Iron Condor, and leaving non challenged side open

[JackRab]

I just got off the phone with the TD trade desk and they told me any option position worth $.05 or less they will cover the base fee to close but you still get charged the price per contract.

Wouldn't that be something... if they would cover the price of the options...

 

[spindr0]

The question is, should I have closed the IC as a whole (which would have cost me $0 in buying power effect), or am I okay leaving the Put side to expire worthless (costing me $600 in buying power up front, which I should get back when the put side expires worthless, but saving me $12 in fees to close worthless contracts)?

I prefer to take risk off the table and free up margin so I'd close the cheapie stuff. I can't tell you how many times several penny options bit me, costing multiples to close. If I'm selling premium, why wait one week for a nickel when the next week's (or month's position) is going to offer much more than that?

 

[tommcginnis]

I prefer to take risk off the table and free up margin so I'd close the cheapie stuff. I can't tell you how many times several penny options bit me, costing multiples to close. If I'm selling premium, why wait one week for a nickel when the next week's (or month's position) is going to offer much more than that?

THIS. This. This. A thousand times, this.

 

[spindr0]

I'm sorry if this is a dumb question but are you insinuating that you don't pay commissions to close positions under five cents?

IBKR charges 25 cents per contract to close 5 cent or less contracts. Not as good as E*Trade as mentioned by others. They also offer free assignment and exercise. I only like exercise when I do it in my account :->)