IB's option cancellation fee

[magmiv]

Quote from hajimow:

For those who are nagging about commission and canecllation fees in IB. Check out my orders today and see how much I paid for commission. If you can find any broker that charges less than 20% more than IB, let me know and I will send you a $1000 check and leave IB in a heartbeat. Remember your broker can charge 20% more than IB but not more !!!

Simply you cannot find any broker which means IB rocks.

Think or Swim commissions for IB users is 1.2$ per leg per option. IB commissions for options vaires, but is usually about 0.85 per leg. if index options are traded, eg SPX, NDX, OEX, then it is minimum 1.00 per leg. The options commission prices shown in their homepage are very misleading. It is always about 50% higher than the fees they quote. They will say it is the "exchange" fees.
Still their commission fees maybe slightly 'cheaper', l am now paying about 0-50% more in commissions at Think or Swim. Am l glad l made the move to Think or Swim from IB though. With IB's deceiving "cheap" commissions, its like not being able to see the forest for the trees. I took on big lossess in my option portfolio with IB while saving pennies in their commissions. Losing because of their lack of real useful money management tools for combo option traders.
l saw another post on it at, http://www.elitetrader.com/vb/showthread.php?s=&threadid=228173
and glad others feel the same way at IB's lack of money management for combo option traders (2 or more legs spread)

 

[ben111]

@magmiv

What's the advantage for combo option traders to trade with TOS? What tools do they offer?

Thanks

 

[newwurldmn]

Quote from hajimow:

For those who are nagging about commission and canecllation fees in IB. Check out my orders today and see how much I paid for commission. If you can find any broker that charges less than 20% more than IB, let me know and I will send you a $1000 check and leave IB in a heartbeat. Remember your broker can charge 20% more than IB but not more !!!

Simply you cannot find any broker which means IB rocks.

Curious, if you think a $20 takeout in yhoo is iminent why are you selling 4 cent options?

 

[uptickk]

Quote from magmiv:

Think or Swim commissions for IB users is 1.2$ per leg per option. IB commissions for options vaires, but is usually about 0.85 per leg. if index options are traded, eg SPX, NDX, OEX, then it is minimum 1.00 per leg. The options commission prices shown in their homepage are very misleading. It is always about 50% higher than the fees they quote. They will say it is the "exchange" fees.
Still their commission fees maybe slightly 'cheaper', l am now paying about 0-50% more in commissions at Think or Swim. Am l glad l made the move to Think or Swim from IB though. With IB's deceiving "cheap" commissions, its like not being able to see the forest for the trees. I took on big lossess in my option portfolio with IB while saving pennies in their commissions. Losing because of their lack of real useful money management tools for combo option traders.
l saw another post on it at, http://www.elitetrader.com/vb/showthread.php?s=&threadid=228173
and glad others feel the same way at IB's lack of money management for combo option traders (2 or more legs spread)

I use both TOS and IB for my options trading. I wanted to point out that the IB commission rates do not include exchange fees like magmiv mentioned above. If you trade certain index products like SPX then you have the normal commission rate plus .44 for premium >= to 1.00 or .35 for premium < 1.00 if you have customer status. TOS's commissions are all inclusive so the commission is the all-in rate, no additional exchange fees. I personally get a better rate trading index products using TOS and I also prefer their setup. With that said I also trade using IB.

The link below shows CBOE’s fee schedule so you can do the exchange calculations on your own.

http://www.cboe.com/publish/feeschedule/CBOEFeeSchedule.pdf

 

[hajimow]

Quote from newwurldmn:

Curious, if you think a $20 takeout in yhoo is iminent why are you selling 4 cent options?

Thanks for observing my trades. You are right. Those trades are a part of my complex trades. They are a kind of covered by my long 18 Calls. I am squeezing the profit by getting some money by selling naked calls 17 since my 18 calls will expire worthless.

 

[zdreg]

it will be seen to be penny wise pound foolish when a takeover is announced. you will end up losing 24x on the trade. the odds are against you.

 

[newwurldmn]

Quote from zdreg:

it will be seen to be penny wise pound foolish when a takeover is announced.

Agreed. If you really believe a $20 takeover is going to happen, don't cap your upside until $20 unless you are getting something that will pay you more than $20.

 

[spindr0]

Quote from magmiv:

I took on big lossess in my option portfolio with IB while saving pennies in their commissions. Losing because of their lack of real useful money management tools for combo option traders.

Thier lack of real useful money management tools is why you took big losses??? ROFLMAO at you.

 

[hajimow]

Quote from newwurldmn:

Agreed. If you really believe a $20 takeover is going to happen, don't cap your upside until $20 unless you are getting something that will pay you more than $20.

I have to agree with you and zdreg. selling naked penny puts and calls is not wise at all. No delta but loaded with volatility.

 

[newwurldmn]

Quote from spindr0:

Thier lack of real useful money management tools is why you took big losses??? ROFLMAO at you.

Don't laugh at him. I lost money because my broker didn't tell me to buy last night.