Penny-priced options

S

showyouwang

I understand that the SEC launched a pilot program for penny-priced options, and that IB lets you trade them. Unfortunately, I don't have an IB account right now cause I don't want to pay on a per-contract basis for options trades just yet.


1) Can I trade penny-priced options outside of IB? If I understand IB doesn't actually make the market it routes the order, so I'm thinking yes to this question. I'm going to call my brokers on Monday to find out.


2) Can I get a comprehensive list somewhere of all securities that have penny-priced options?


Thanks.
 
I understand that the SEC launched a pilot program for penny-priced options, and that IB lets you trade them. Unfortunately, I don't have an IB account right now cause I don't want to pay on a per-contract basis for options trades just yet.
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Just curious. Why would you not want to pay on a per-contract basis for option trades?
What's the advantage to a minimum commission broker?
 
I want to place 1000+ contract trades on deep OTM options. At a normal broker that would cost me thousands of dollars getting in and out of a position that costs a few thousand dollars to begin with.
 
I see its not a flat fee per month or so its a flat fee per trade. I get the feeling if you're trading a lot of 1000 lots they're not doing them for 9.95
 
According to their website, the fee structure is same regardless of number of contracts. I talked to a rep. Their parent firm is Peak6. Make of that what you will....
Also, in order to route to a specific exchange you need to actually call one of their traders to execute the order.
I think this is good for retail, crappy for prop guys. Prop guys are better off with Simplex.
 
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