Non-Standard Call OptionsBeware.
The non-standard Call Options still have a multipler of 100. Meaning you buy a non-standard option is still multiples by 100 as cost of Call contracts.
What makes it even worse, if you go to excercise those non-standard call options you still have to pay for the 17 shares (per contract) that you will never receive.
Simple Example,. you buy 10 contracts of $10 Strike, say for $4 per share contract.
You will pay $400 per contract or $4000 for all 10 contracts.
You wil pay $10,000 to excercise those contracts (10 contracts at $1000 per contract).... end result only receive 830 shares. 170 Shares / $1700 out the window (out of YOUR pocket) on the excercise. Crazy.
I expected you would only have to pay the $10 per share on ONLY the shares to be received. IE $830 per contract.
Unfortunately for me TD had given me incorrect information last week as I specifically called TD's Option desk and requested if the cost associated would be $830 per contract. Which after some time on hold they incorrectly confirmed.
Well that incorrect information just cost me a bunch of money. Spent some time on the phone again today with TD's Option desk, as well as the OCC to get clarification.
Just be aware. Better off to stay away from the "non-standard" contracts.
eom
momo