January 24, 2009

What brokerage offers low commissions on options trading?

trading options
Robert B asked:


Vanguard charges quite a bit. Maybe some companies do much better.

Also, do brokerages charge for exercising options?

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January 23, 2009

if I am already working with a broker then how I have options to shift for another to maintain online trading?

trading options
Dranil A asked:


i am working with the prabhudas lilladher from 5 years and now i want to my terminal for online trading but they have not sufficient arrangments and facilities for providing online termian then how i have option to start my online share trading?

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January 22, 2009

Trading Options?

trading options
curl joe asked:


I see that a call for payx Jan 09 is around $4.40 at $50 strike - now if i bought one contract that would cost $440 right? also if i bought this planning to trade it later and not ever excersice it would i be fine with only the $440 or do i need enough $ in my account to cover the stock when it is exercised? im getting confused when someone says i need to have enough to cover my bets - i just wanna buy a Jan 09 call for $440 and sell it in 6 months - how much would i need to buy that?

thanks

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January 21, 2009

trading options?

trading options
romanzoffia asked:


what option strategy offers a combination of the possibility of large reward, with the safeguard of being easy to adjust to protect the money invested?

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January 19, 2009

What are the requirements to trade options if you use an online broker like Scottrade?

trading options
chief_clay77 asked:


Im a 21 college student and have decided to take a small amount of risk in the market, perhaps trading options. I have an account with the online broker Scottrade that has a value > 25000. I turned in the paperwork for trading options. So if I were to invest a small amount of my portfolio into a call option for (X) tomorrow morning, what steps do i need to take (besides filling out the order form i know how to do that)? Do I have to own shares in (X)? Also it’s a $1.25 per contract, so does that mean for each single option I buy it cost $1.25? I just started a course in investments and will learn more about options later this semester, I just want a head start and possibly make some money. Thank You.

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January 17, 2009

What kind of a job would one look for if VERY interested and enjoys trading stocks/options?

trading options
reymondhak asked:


Hi,
My interest in stock and options trading has grown in the last year or so, my question is what kind of a job or career can I look in to if I enjoy following the stock market and trading stock/options? I do not have much experience in this field other than reading books and trading here and there…
I truly enjoy technical analysis and trading, where do I start if I want this to be my career?
—What companies can I work for to learn and earn an income? Most importantly learn!!!
—What position can I get being inexperienced?
basically where do I start?
Thank You

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So what are “options” , as in “option trading” then?

trading options
Pumpkin Patch asked:


“The basic trades of traded stock options” which are “like” stocks”

If option trading means you aren’t actually trading stocks, then what are you trading?

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January 15, 2009

Whats the cheapest options trading site?

trading options
mrT asked:


Is there a difference between etrade, fidelity, etc? Are the only differences between them commisions?

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January 14, 2009

I understand the theory of options, but need a good explanation of pysically trading them?

trading options
arazzabo asked:


My brokerage account is at a level of covered writing. the only choices I have when I select trade on an option chain is “sell to open” and “buy to close”. I understand what they both mean but have a few questions:
Symbol is “F” (Ford), current price is $7.85.
if I sell to close a 1 contract option with a strike price of $8.00 with a bid of .10 and an ask of .15 with an expiration date of Sept. 22nd and the strike price is not reached, how much money do I make? I know I would receive a net of $2.00 in my account (.10 X 100 = $10 minus $8.00 commission). Do I just keep the $2.00 if the contract expires? If the actuall price of Ford goes down to say $7.35 in a couple days, would I “buy to close?” I guess what’s confusing to me is the ask/bid prices on the option.

Also, can you sell to open puts and also calls? What’s the diff? I know a call is bullish and put is bearish. I might just be confusing the whole thing. Thanks for any info. I’m really trying to understand.
Awesome advice/answers….Thank you. On the Friday that my option is going to expire (assuming it’s below the strike price), do I have to execute a “buy to close” trade or just let it expire?
So let’s say I held 700 shares of Ford at $7.50 and “sold to close” a 1 contract option with a strike price of $8.00. Ford goes to $8.05 tomorrow. Do I now hold long 600 shares and am paid $800 dollars for the sale?

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January 13, 2009

How does trading stock options work?

trading options
cornacopia16 asked:


For instance, can I simply trade the contract cost without ever having an obligation to the shares? For instance, let’s say I buy a call contract at $2.50 ($250.00) and the next day the stock rises and the same call contract is worth $2.55 ($255.00). Would I be able to sale the same call contact for the $2.55 with no other obligations even before the expiration? Does it also work that way with put options?
Thank you

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