I am not familiar with the division between TOS' operations here in the
U.S. and there in Canada. Once TD Ameritrade bought TOS, I, along with
a lot of other TOS clients, had concerns about what this meant in terms
of commission structure, the trading platform, and other services.
Ironically, I was a TD Waterhouse customer but left because they did not
understand options and were not interested in supporting them at the
retail level beyond allowing me to sell covered calls or buy married
puts.
Are you sure the minimum is per leg? The minimum should be for the
whole ticket. I would double check that with them. As a practical
matter, at $1.50 per contract the cost of putting on one iron condor is
$6.00. If TOS Canada is willing to drop their minimum to $5.00 on the
whole ticket you can get into the position at no additional cost. Even
defensive tactics like a butterfly roll will cost more than $5.00 to
execute.
Christopher Smith
TheOptionClub.
--- In OptionClub@yahoogro
wrote:
>
>
>
> Hey Guys,
>
> I live in Canada and TOS is owned by TD Waterhouse here which is a
separate division of TD Ameritrade from the USA. I asked if they will
wave the the $7.50 minimum charge per leg. Since I am still learning the
ropes I only trade 1 contract per leg and I primarily do Iron condors. I
am ok with the $1.50 per contract charge but they refused to wave the
$7.50 minniumum. The best they offered was $5 minimum per leg which
still adds up to a lot of money when you trade only 1 contract per leg
on an iron condor.
>
> Is anyone here from Canada that has had better success then I did with
TOS? Also, do any of you guys have pull with the heads up at TOS where
we might be able to get them to bend the min. charge rules for their
Canadian subsidiary?
>
> Any help would be greatly appreciated. Thanks.
>
> --- In OptionClub@yahoogro
> >
> > 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.
> >
> > --- In OptionClub@yahoogro
> > 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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