1 1a2b3cppp Apr 11, 2011 #1 How do you make money selling these like 3 cent options? That brings a premium of $3. After commissions you lose, even if the option is never exercised?
How do you make money selling these like 3 cent options? That brings a premium of $3. After commissions you lose, even if the option is never exercised?
S spindr0 Apr 11, 2011 #2 Ignoring the sagacity of selling said 3 cent options, some brokers charge 25 cts (or less) for that.
1 1a2b3cppp Apr 11, 2011 #3 Oh. I use Scottrade and it's like $7 + $1.25 per contract or something. So I was like, wtf selling cheap options?
Oh. I use Scottrade and it's like $7 + $1.25 per contract or something. So I was like, wtf selling cheap options?
S spindr0 Apr 11, 2011 #4 If you trade 15-20 contracts a month (round trip), look elsewhere. B/A slippage is bad enough but that rate is too much to swallow (gulp)
If you trade 15-20 contracts a month (round trip), look elsewhere. B/A slippage is bad enough but that rate is too much to swallow (gulp)
S savagemp5 Apr 13, 2011 #6 That's the job of the market makers and clearinghouse to have net neutral positions at the end of the day. It shouldn't be your concern.
That's the job of the market makers and clearinghouse to have net neutral positions at the end of the day. It shouldn't be your concern.
