[TheOptionClub.com] Re: Has anyone tried this for TOS Commissions?

 

Mike,

Basically what happens when you're assigned on a cash index option is
that for every point it is in-the-money $100 is deducted from your
account. So, if you have a 10 point spread the worse case scenario is a
$1,000 deduction per spread sold. It's really not that big of a deal so
long as you are managing your risk and not trading to much size. The
cash deduction is no different that the account debit you experience
when closing the position.

Most of the cash index options are European style, meaning that they
cannot be exercised early but there are some that are American style and
that offer early exercise potential. For details on the specific
options you're trading head on over the the CBOE website.

Christopher Smith
TheOptionClub.com

--- In OptionClub@yahoogroups.com, Mike Cleveland <mikeandjody1996@...>
wrote:
>
> Thanks Chris,
>
> These are index options. I learn by doing, so I trade live, just very
tiny position sizes, so that I can understand what is happening in the
live market. I had no plan for getting assigned on the short options, I
only had plan to manage the portfolio by keeping delta neutral, which
has indeed happened so far.
>
> Mike
> P.S. I just trade with TOS regular commission schedule, for the reason
mentioned below.
>
>

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