Newbie question

IIAce · Jul 5, 2006

I just opened an account with Thinkorswim. I tried to buy 100 Jan 08 puts today that were selling for $1.00. I thought I'd have to pay $100 + comissions, but when I hit the confirm and send button it said the cost was more like $1,000 + comissions. What's going on?

Arnie Guitar · Jul 5, 2006

You fella's want me to handle this one?

momoneythansens · Jul 5, 2006

Quote from Arnie Guitar:

You fella's want me to handle this one?

Sure, give it a go, best way to learn IMO....then MTE will be along to make any corrections

Arnie Guitar · Jul 5, 2006

Well, I'm only feeling relatively confident cuz' Greek's ain't involved..........

RichardRimes · Jul 5, 2006

You boy's quit funning and answer the poor schmo.....

Arnie Guitar · Jul 5, 2006

I'm just glad he had enough in the account to cover it.

With all the stuff you guys give me about trading without knowing greek from sicilian, I can't believe everyone's going so easy so far..................

RichardRimes · Jul 6, 2006

Quote from IIAce:

I just opened an account with Thinkorswim. I tried to buy 100 Jan 08 puts today that were selling for $1.00. I thought I'd have to pay $100 + comissions, but when I hit the confirm and send button it said the cost was more like $1,000 + comissions. What's going on?

Just curious Ace but WHY did you think you would have to pay only $100 + commish?

Arnie Guitar · Jul 6, 2006

Like he said, they were selling for a $1, so 100 x $1 = $100......right?

by the way, ace, 100 contracts @ $1 would be $10,000,
not $1,000.

Is this April 1st?

IIAce · Jul 6, 2006

Oh...forgot that the price quoted was per share and that each contract had 100 shares.

IIAce · Jul 6, 2006

Oh wow...I just realized that if I only wanted to spend $100 + comissions like I originally thought, I'd only be able to buy one contract...

What's the average size of an option trade? I know one contract must be the minimum...