- Nov 17, 2006
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Just a quick question when selling calls/puts you pay a commission to sell the option but are you charge commission when the option expire and you collect the premiums?
rookie questions (options related)
- Thread starter Kid Bro Sweets
- Start date
KBS when you sell the options you collect the premiums instantly. now if the option expires you are not charged anything.
ie. ABX July $48 call (covered) $1.50
so for each 100 shares I collected $150 minus my commisisions.
now ABX is 44.86 cdn. so this will expire tomorrow.
then I will sell another option either the August 48 for .84
or the Oct 48 for 1.70
or maybe oct 50.
you are only charged a commission when you sell, the option (or buy) and when it is excercised.
ie. if ABX Barrick gold was 49, I would lose it at 48 and pay the commisision.
ask your broker or discount brokerage how much commission they charge you if an option is excercised, it does vary amongst the discount brokerage.
from rates as low as 5-7 to $40 (highest amount).
thanks
selkirk
ie. ABX July $48 call (covered) $1.50
so for each 100 shares I collected $150 minus my commisisions.
now ABX is 44.86 cdn. so this will expire tomorrow.
then I will sell another option either the August 48 for .84
or the Oct 48 for 1.70
or maybe oct 50.
you are only charged a commission when you sell, the option (or buy) and when it is excercised.
ie. if ABX Barrick gold was 49, I would lose it at 48 and pay the commisision.
ask your broker or discount brokerage how much commission they charge you if an option is excercised, it does vary amongst the discount brokerage.
from rates as low as 5-7 to $40 (highest amount).
thanks
selkirk
- Nov 17, 2006
- 134
- 0
- 0
