Thinking of moving some cash into TT, to sell spreads on the above. Looks like they have the lowest commission. But how are fills, execution, accounting (Sec. 1256 tax form). Any caveats?
It's a sht rate and you're paying to cover even if your positions expires. TT sucks. Platform should be called memory leak. It sucks even for Tennessee.
You will actually be paying 1.78 to open an SPX option contract and .78 to close at Tasty. To open 1.00 commission .10 clearing fee .03 reg fee .65 exchange fee To close, same, but no 1.00 commission Fills across brokers will be similar in the SPX as it is single listed, and all trades will go to the CBOE.
Your cheapest rates on SPX options will probably be at Fidelity. They don't pass on the extra CBOE exchange fees.
interesting about Fidelity. Lower than IB even? Is there a high minimum for short spreads on SPX or some other caveat?
IB's bundled rates are bad. You need to do enough volume to make unbundled pay. It's tough to beat IBKR's fills in SN.
IB will charge a flat rate of .65 and small reg fees (less if a lot of volume). But they pass on true SPX exchange fees of around .65 (exchange fees can be less if in SPXW or if the premium is very low). So you are going to be paying around 1.30 per contract at IB vs .65ish at Fidelity. The fact that Fidelity doesn't pass these on will make them substantially less than anyone else in the SPX. As long as you are doing short spreads at Fidelity you should only be required to post you max loss in margin.