Author Topic: IMPACT OF FREE TRADING?  (Read 2115 times)

TwoCitiesCapital

  • Hero Member
  • *****
  • Posts: 2340
Re: IMPACT OF FREE TRADING?
« Reply #10 on: January 10, 2020, 10:04:40 AM »
A behavior change I've noticed in myself is that I sell options closer to expiry.

It used to be for options contracts that only had small premiums, that the commission would take out a huge chunk of the return if I wanted to roll a contract before expiry OR if I was selling contracts on low-$ positions.

Now that commissions are zero, I trade near-expiry options way more frequently.

If other market participants are doing this too, I would imagine the spread between short-dated and long-dated options might narrow.



DooDiligence

  • Hero Member
  • *****
  • Posts: 2056
  • ♪ 🎶 ♫ ♪ 🎶 ♫
Re: IMPACT OF FREE TRADING?
« Reply #11 on: January 10, 2020, 04:37:30 PM »
For those who care. Vanguard finally joined commission free trading on equities. Also looks like they will finally update their online experience (about time).

https://pressroom.vanguard.com/news/Press-Release-Vanguard-Expands-Commission-Free-Platform-Beyond-ETFs.html

I really like Vanguard's dilapidated look (though sometimes I get the updated screen edition and it looks worse). I keep my core holdings there and the interface is so clunky it pains me to even think about trading on it. This is probably the reason why I haven't had many sell transactions on Vanguard over the years and that portfolio has been outperforming my actively managed account by a wide margin.  I guess, I'm glad that the fees are now 0.  :)

I like the way you think.
BRK.B - 24.9% // Healthcare 22.5% - EW NVO // Auto's & Oil 18.4% - CLB GPC PSX VDE

Banking 9.4% - WFC // Entertainment 4.7% - DIS // Drinkers & Smokers 6.4% - MO

Retail 7.0% - ULTA VLGEA

---

%'s held @ MV 2/19/2020 minus 6.7% investable cash

i trumpet my ignorance

https://twitter.com/tunawish