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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: taxman who wrote (29725)	9/18/1999 1:57:00 PM
From: t2	Respond to of 74651

so what do you do if your position rises to over $2,000--how do you get out without paying at least $345? If your position rises well above $2000---then who cares about the commissions. However, if it rises to about $2500, just sell only enough contracts that allows you to keep your trade at 2000 or below. Sell the balance on another day, ie, split up the trade. Of course, this would be difficult if one does a day trade on options expiration day. What if my positions drops to only $1500; i would still be able to get out with $45 in commissions. Otherwise it becomes $345 to buy and $345 to sell!! I have been staying away from such trades. The ones i have tried are generally around $1, meaning that i could do the trade at another brokerage with about the same type of commission rate. I am not sure at what options price the commission rates will converge to "similiar" amounts regardless of the brokerage---i believe it is about 3/4 minimum options price.