Option - a close call

Yesterday I tried my hands at Option trading - a VIX call option contract that expires in 1 week.

Background: "An option premium is the current market price of an option contract. For stock options, the premium is quoted as a dollar amount per share. It depends on the price of the underlying asset and the amount of time left in the contract.
Option price above was opened at $4.90, closed at $5.25."

Facts about Saxo's option:
- American style
- Settlement: physical
- Contract size: 100


It's highly risky and darn expensive (commission USD30) to trade options on Saxo.

I sized wrongly. I could have lost my entire premium if US market failed to slide before the option expires (the slide came today, I am lucky or what?!). 

Yeah and it would make a pretty expensive hedge. So phew...

You have got the pun in my title.

Oh well. Better stick with plain vanilla EQ and CFD.


Gold slide. Investors are moving into cash again.

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  1. Saxo overcharges for options, they charge for currency exchange, contract opening and closing. Compared to IB, they charge a flat USD$1 per option, nothing else.

    1. Hi Quentine,

      Thanks for the heads up!


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