TDA plans to add fees to option contracts?

Marcas

Member
So we are no the same boat. For what I heard SPY has super execution and super liquidity. You miss .5c flexibility though, but I don't think it is very important. I did not trade SPY for a long time due to comm. nor did look at Vol Skew. Hope it is pretty similar to SPX because I have data for SPX already nicely organized.
I don't want to do any hasted moves though.
Can you list brokers who have cap on option commissions? The only one I know is ChoiceTrade - $50, before that $.40/contract.

I wwtched presentation of TastyTrade' platform. I really like some elements of it.
I hitted CT with a wish list for their Elite (because I like their comms). I talked to them before and they asked for it. We'll see what will happen.
 

status1

Active member
Some interesting facts I found out recently about SPY that maybe others already knew it may be just new to me

1 On TOS on the trade tab where you see some of the expiration have weeklies next to them while other do not It doesn't mean anything because they are all pm settled

2 You can get assigned up to 5:30 pm on expiration day on SPY I am not sure if it's the same for all equities You would think that after the market close you cannot be assigned but it seems that is not the case at least not for SPY
 

RandyS

Member
So we are no the same boat. For what I heard SPY has super execution and super liquidity. You miss .5c flexibility though, but I don't think it is very important. I did not trade SPY for a long time due to comm. nor did look at Vol Skew. Hope it is pretty similar to SPX because I have data for SPX already nicely organized.
I don't want to do any hasted moves though.
Can you list brokers who have cap on option commissions? The only one I know is ChoiceTrade - $50, before that $.40/contract.

I watched presentation of TastyTrade' platform. I really like some elements of it.
I hitted CT with a wish list for their Elite (because I like their comms). I talked to them before and they asked for it. We'll see what will happen.
Before Christmas I talked to Scott Sheridan one of the partners on TOS before they sold and works with Tasty Trade and he suggested SPY to me. The only thing I don't like is they charge $1 per contract to open and zero to close on SPY but they don't have any limit on commissions. So you can figure $.50 per contract which is what I have at TDA and hundreds more contracts. Scott also told me their was a $.10 per contract fee and might consider not charging that on SPY. He said they had to charge the SPX fees.

Tradier and Choice are the only two that I know of who limit commissions. Tradier told me they were not accepting IRA accounts and later heard they would accept the IRA but you can't trade it at this time. WTC?

I agree. I'm not going to jump into anything too quickly but the commission attraction with SPY and a cap on commissions it too good to not investigate.
 

RandyS

Member
Some interesting facts I found out recently about SPY that maybe others already knew it may be just new to me

1 On TOS on the trade tab where you see some of the expiration have weeklies next to them while other do not It doesn't mean anything because they are all pm settled

2 You can get assigned up to 5:30 pm on expiration day on SPY I am not sure if it's the same for all equities You would think that after the market close you cannot be assigned but it seems that is not the case at least not for SPY
Thanks for the info. The thing about limited commissions is why would you ever let it an ITM option go to expiration if you can close it for free.

I set up one of my BWiFly trades on TOS on SPY as a test. I really don't have rules about how wide the wings are because I look at the T-0 line and move the strikes to get it as delta neutral in the upper part of the structure while I limit my risk about $10-12k max at the beginning of the trade. SPX is really easier to get a 10x fly to be slightly negative deltas and harder to get the SPY why because not all the strikes are available. I was able to get it close but I really like the way the T-0 line looks. I set up a similar SPX trade and will see how they compare.
 

RandyS

Member
That's a decent gain
So that's about 15% in commissions and I guess about 30% with the index fees
If I can't use SPY then I will trade it at Fidelity. They only charge $.50 per contract but as you know their platform is just past stone age. One of my friends is moving some of his accounts Schwab because they offered the same commission and he hopes they one day roll it into TOS and drop the fees. It will probably be a long time before that happens. Schwab and Fidelity platforms are about the same.
 

status1

Active member
Right I don't either as of now. Did you do some SPY trades?
Yes I just started with the new year more like an experiment to see how the commissions are and if it's profitable enough to play with it until SPX volatility comes back
Just doing 1 lots very short term IC
 

RandyS

Member
Yes I just started with the new year more like an experiment to see how the commissions are and if it's profitable enough to play with it until SPX volatility comes back
Just doing 1 lots very short term IC
I just put one in analyzer and locked the price. Then saved it. Will save any adj. Let me know how your trade does.
 

RandyS

Member
They do have a $10 limit on options per leg so if you trade 100 contracts per leg that's good If you only do 10 or less that's not so good
Who is they? Fidelity doesn't charge to close a option that is $.65 or lower in value. Not sure what Schwab does.
 

status1

Active member
Who is they?
That was a reply to your post earlier about Tastyworks

Not sure exactly how Fidelity is calculating it but for a put spread closing on SPX I got 45 cents for one leg and nothing on the other one leg was 9 cents and the other was 14 cents

Schwab is charging the regular 65 cents per option leg regardless of the price
 

status1

Active member
Let me know how your trade does.
It's better than expected I did about 6 trades in the first 2 and a half weeks and I was up 50% on my margin except on this last day that ended on Friday I gave back a little on the call side as usual but still up 43%
Of course I have not been challenged too much yet but I will keep experimenting with it and tweaking it
At least it will keep me occupied while I am waiting for a better entry time in SPX
 

RandyS

Member
Yeah, I remember someone at Fidelity say they only charge for one leg but didn't really understand and thought I misunderstood it since I only placed trade so far. I'll keep my eye on that.
 

RandyS

Member
It's better than expected I did about 6 trades in the first 2 and a half weeks and I was up 50% on my margin except on this last day that ended on Friday I gave back a little on the call side as usual but still up 43%
Of course I have not been challenged too much yet but I will keep experimenting with it and tweaking it
At least it will keep me occupied while I am waiting for a better entry time in SPX
One thing that some of us are doing when the vols are really low especially below vix of 14 we switch to calendars. It allows us to trade while the vix is really low and they have been working pretty good. Last week the grind up has made it challenging but that's just part of making money.
 
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