3SOF

LEH looks like a great Short here.  Their books are much like Bear Stearns...and I don't trust their accounting.

Anyway...Instead of shorting...I want to buy puts.  I've never bought options before.  I use ameritrade...and their commission is 9.99 plus .75 per contract.  So lets say I want to buy $1000 worth of puts of $30 strike price trading at $1.00...would my cost on commission be $109.99???

The commission seems so high

Thanks for any help

Whoops correction on commission cost.

LEH looks like a great Short here.  Their books are much like Bear Stearns...and I don't trust their accounting.

Anyway...Instead of shorting...I want to buy puts.  I've never bought options before.  I use ameritrade...and their commission is 9.99 plus .75 per contract.  So lets say I want to buy $1000 worth of puts of $30 strike price trading at $1.00...would my cost on commission be $74.99???

The commission seems so high 

Thanks for any help 

LEH looks like the next one to drop.

Damn...I've been eyeballing that April $25 options strike.  Would have been a double from yesterday.

Hi kslifka,
I wish I knew options to help you. I tried to understand, but really had no one to ask basic questions. I have been watching LEH too. I sat and watched it sink $8 over the past 3 days. I shorted LEH in the past. I am tempted to short again, but was afraid I was getting to attached to it.
I wanted to add these websites. Maybe this will answer your question(s).
http://www.cboe.com/
http://www.888options.com/default.jsp

Quote from: kslifka on March 26, 2008, 02:32:13 PM

Anyway...Instead of shorting...I want to buy puts.  I've never bought options before.  I use ameritrade...and their commission is 9.99 plus .75 per contract.  So lets say I want to buy $1000 worth of puts of $30 strike price trading at $1.00...would my cost on commission be $74.99???

An options contract = 100 shares. So your example above = $9.99 transaction + $0.75c per contract (100 shares) =  $0.75 x 10) = $7.50 + $9.99 = $17.49

Oh, yes .75 per contract. He wanted 10 contracts. Thank you for the lesson teacher (AussieTrader)! That option stuff is another world. I will learn someday.

edit:LEH up 2.59 per market. How can I tell if this is short activity?
edit #2: Lehman Brothers rose 5% in pre-open trade as it was upgraded to buy from hold at Citi, noting an "extremely attractive" entry point, the recent Fed and Treasury actions to boost liquidity and the broker's management.
BUT it is dropping..again up 1.00 pre-market.

Analyst upgrade can't even save LEH. 

anyone shorting LEH, MER (before earnings) or COF?
I made money off LEH & COF, but I always sell too soon.