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Hello money tree,

Actually, that’s a very good point about situations with large parcels of shares, where some brokers charge heavily above a certain value like 1% or above on a 300k position.

In this case I can see the effectiveness of buying an ITM front month call and exercising it if it works out to be cheaper. Depends a lot on your broker and position size.

I can imagine a 15 contract position for a $20 odd dollar stock being a killer to deal with if your broker is going to charge a percentage. Not a good way to trade, $4 K is way too much brokerage in my view. Personally I’d either do a deal with the broker, or fire them. It’s so competitive now, and if they want your business, they’re going to have to play ball.

Speaking more broadly about personal preferences, I tend to wind out single series bought options preferably before 30 days till expiry to avoid the theta decay, and only hang in if the move looks like it is strong once the OTM option had moved ITM… but that’s a personal preference, isn't it?

Regards

Magdoran

<blockquote data-quote="Magdoran" data-source="post: 124932" data-attributes="member: 3955">Hello money tree,Actually, that’s a very good point about situations with large parcels of shares, where some brokers charge heavily above a certain value like 1% or above on a 300k position.In this case I can see the effectiveness of buying an ITM front month call and exercising it if it works out to be cheaper.&nbsp; Depends a lot on your broker and position size.I can imagine a 15 contract position for a $20 odd dollar stock being a killer to deal with if your broker is going to charge a percentage.&nbsp; Not a good way to trade, $4 K is way too much brokerage in my view.&nbsp; Personally I’d either do a deal with the broker, or fire them. It’s so competitive now, and if they want your business, they’re going to have to play ball.Speaking more broadly about personal preferences, I tend to wind out single series bought options preferably before 30 days till expiry to avoid the theta decay, and only hang in if the move looks like it is strong once the OTM option had moved ITM… but that’s a personal preference, isn&#039;t it?RegardsMagdoran</blockquote>

[QUOTE="Magdoran, post: 124932, member: 3955"] Hello money tree, Actually, that’s a very good point about situations with large parcels of shares, where some brokers charge heavily above a certain value like 1% or above on a 300k position. In this case I can see the effectiveness of buying an ITM front month call and exercising it if it works out to be cheaper. Depends a lot on your broker and position size. I can imagine a 15 contract position for a $20 odd dollar stock being a killer to deal with if your broker is going to charge a percentage. Not a good way to trade, $4 K is way too much brokerage in my view. Personally I’d either do a deal with the broker, or fire them. It’s so competitive now, and if they want your business, they’re going to have to play ball. Speaking more broadly about personal preferences, I tend to wind out single series bought options preferably before 30 days till expiry to avoid the theta decay, and only hang in if the move looks like it is strong once the OTM option had moved ITM… but that’s a personal preference, isn't it? Regards Magdoran [/QUOTE]

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