No. of Recommendations: 8
Guys, you are trading the wrong (too cheap) options. Today I bought a shitload of options at Schwab. For each trade Schwab's fee resulted in around 0.05%, a fee I couldn't care less about. Neither today nor in the past as I was never interested in contracts selling for pennies (Is that then called "Penny contracts", as in "Penny stocks"? 😂)
You misunderstood the conversation. Ray commented on a hypothetical trade, and I commented that his commission calculation was wrong. Don't you worry, I haven't bought an option contract priced at less than $1.00 for at least ten years. But sometimes it goes against you and you end up selling it for pennies. That can happen just as well for a contact you originally bought for $10 or $50 or more.
But to your point, the price of an option means nothing. e.g. When NVDA stock split 10 to 1 its options split too, and it had absolutely no effect at all on their desireability. If a particular NVDA option traded for $5 a day before the split, it was just as good the next day, trading at $0.50.
Elan
