Options - Module 3
What trading options costs
Per-contract commissions and fees, spreads that widen away from the money, and assignment and exercise costs. Theta introduced honestly: holding an option has a running cost even when nothing happens.
9 lessons, about 54 minutes
- 1Commissions, per contract6 min
- 2The spread is the dominant cost6 min
- 3The multi-leg cost multiplier6 min
- 4Time decay is the buyer's carry6 min
- 5The costs of exercise and assignment6 min
- 6Slippage on thin chains6 min
- 7The leverage that cuts both ways6 min
- 8The option's cost against the underlying's6 min
- 9The all-in cost of an options position6 min