A question about options pricing?

Question

On TD Ameritrade for example, it says that it costs $9.99 to buy an option + $.75 per contract. Also, there is a fee of $29.99 in order to exercise an option.

So my question is, can we buy different options of the same company under the same commission cost. Like can I buy GOOG $500 Call Options and $550 Call Options under the same commission costs? Or, I could only use the commission fees for one Call Option, unlimited contracts?

Please explain it to me.

Thank You

Answer 1

if you buy 500 and 550 call, that will be two different options, you have to pay hte 9.99 twice (plus the 0.75 per contract)

you can buy as many contracts as you want under one 9.99 cost (plus 0.75 per contract), as long as it is in the same trading day. for example, if you put in an order to buy 100 contract, and 60 of those execute today and 40 tomorrow, you will have to pay the 9.99 fee twice.

Answer 2

Each contract is for 100 shares. It sounds like it is 0.75 per contract -- so if you buy more contracts you get the same price.

You should know that very few people exercise their options. Instead they sell the contracts at a profit. It looks like their pricing structure is there to encourage you to reverse the trade before execution.

Answer 3

In binary options you will have the possibility to predict the movement of various assets such as stocks, currency pairs, commodities and indices. Learn how you can make money trading binary options https://tr.im/tiSzV
An option has only two outcomes (hence the name “binary” options). This is because the value of an asset can only go up or down during a given time frame. Your task will be to predict if the value of an asset with either go up or down during a certain amount of time.

Answer 4

Try http://interactivebrokers.com, they have a per contract commission schedule. More specifically, http://www.interactivebrokers.com/en/accounts/fees/commissionStockIndexOptions.php?ib_entity=llc

I've been using them for more than two years now and I don't concern about commission cost when making my trade decisions.

I still have an acc. in AMTD, mainly using it for research and streamer.