Questrade and the Credit Spread, some comments

I have placed two spread trades with Questrade now. One bull put credit spread and one bear call credit spread...basically an iron condor style trade if taken together as they are both expiring on the same EOM timeline. My execution could have been better timed, although the put spread is where I would want it to be the call spread is a little close due to my just wanting to place a spread trade to try it out.

Unlike a regular trade the spread trades CAN rack up a larger loss if let go if the underlying stock or ETF price goes through the spread to the other side.

I already noted how Questrade calculates the commissions for these. Both side of the spread are treated as one trade therefore the commission is $9.95 plus one dollar per contract. So my 4 contract call trade is $17.95 ($9.95+ 8 x $1).

I expect, but did not ask, if closing the trade costs the same commission. Letting it expire is the best method of retaining as much capital as possible as closing a trade should only be done as a risk management and loss control measure.

I have to place orders through the trade desk, easy enough. The desk brokers are helpful and knowledgeable and quick to pick up the calls. I do not have to pay the additional $25 trade desk fee for these trades...I wasn't sure about that originally.

The latest curiosity has been the closing of one leg of the spread. If I have sold a 110 strike and bought a 112 strike call and I want to control risk by closing the short side, the 110 strike, due to a price move in that direction can I close the short call?

The quick answer is yes, I did not ask how the commissions get calculated though.

I can call the order desk and they will close it for me or I can do it through the platform. If I do it myself my buying power is not adjusted until the end of the day so if I want to place another trade and need the room I would have to call the desk to advise them. No big deal.

All in all I must say that I am pleased with the options trading through Questrade. I thought the order desk was going to be problematic but it appears that I was mistaken.

Next question will be can I place GTC spread trade orders? For some reason I doubt it unless I placed the short option trade order independently in the platform and then just placed the long order after execution...or just let it expire as it may not be worth the commissions or could actually end up ITM...another day.

Jeff.