Fee structure for options trading

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Nov 7, 2009 9:37 pm

hi there guys,  as of January my registration will be effective,im the owner of my own ria and of course i will be an iar.

 Besides the other common investment styles,  i will be offering a service of active/options trading, that will consist of selecting stocks based on fundamentals and technical analysis, and writting options against them ( collars, covered calls among others), my question is: i am not sure what would be a fair fee to charge for this kind of service???.... here in puerto rico, some other Ria's charge about 2-3%, and no one uses options on their services... if someone has any suggestions plz feel free to comment. thx in advance

Nov 8, 2009 7:44 pm

....c'mon 30 views... no response, plz just some suggestions......i know there must be someone here that does something similar if not the same...

Nov 8, 2009 8:27 pm

Your question is too broad but you can either...
 
1. Add to your fee for options trading.
 
2. Add financial planning with your strategy's goal as the objective.
 
No one can not tell you what is a fair price without knowing what value your strategy will provide and how much it will cost to provide it.
Nov 9, 2009 8:30 am

Gaddock doesn't do it on a fee basis - I believe.

 
Who the heal knows what is acceptable in Puerto Rico.  But I would side with IceCold.  The rich, which is probably your target, are known for nickle and dime'in down a fee. 
Nov 11, 2009 12:18 pm

It also depends on who pays for ticket charges.  Clients or you.  Is this going to be a fairly active strategy with lots of turnover?  If so, and client pays for ticket charges, I would say paying 1.5% can be too much.  Depends on the total costs.