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Writing Options on Margin Loans

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Old 06-01-2008, 07:00 PM   #11 (permalink)
Ol School Skata
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Quote:
Originally Posted by Grar Industries View Post
Hi DaveJ,

Just one thing on being assigned though - I'm interested to know how much your broker charges you? I've asked Commsec and NAB and I think they both said $0.55. Does this mean $550 per contract? If so, this sounds pretty hefty and may completely negate any benefits obtained from locking in your buying price. Please let me know!

Thanks again.

Grar Industries
I use commsec and have had shares assigned through automatic exercise/assignment via an options contract. I am sure the 55c is 55c per option contract.

eg you wrote 5 option contracts - charge for exercise/assignment is 5 contracts x 55c = $2.75.

Hope this helps.

OSS
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Old 14-01-2008, 05:17 PM   #12 (permalink)
Grar Industries
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It does.

Thanks Ol School Skata.
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Old 14-01-2008, 07:15 PM   #13 (permalink)
DaveJ
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Plus brokerage... So per option price * number of options.... PLUS Brokerage

Well that is how i get charged.
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Old 15-01-2008, 05:35 PM   #14 (permalink)
DaveA
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and brokerage kills you if your hedging something small...

Comsec fees are like $60, so it costs you $62.50 to hedge your 5 contracts.... its just difficult...
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