One TermMax Alpha number I would never treat as net profit is the gross option payoff.
The standard fee schedule lists 7% of premium for opening or closing an option, while also noting a transaction-fee waiver during the Alpha boosting program. The exercise fee is different: 1.9% of notional multiplied by remaining term divided by total contract days. Financing cost accrues separately, per second, and execution can still include slippage.
Example: $10,000 notional, 16-day term, 4 days remaining. The exercise fee is $10,000 × 1.9% × 4/16 = $47.50, before financing and execution loss.
My rule: verify the live fee state in the interface and calculate breakeven from total costs, not from strike and premium alone.
@TermMax #TermMax
The standard fee schedule lists 7% of premium for opening or closing an option, while also noting a transaction-fee waiver during the Alpha boosting program. The exercise fee is different: 1.9% of notional multiplied by remaining term divided by total contract days. Financing cost accrues separately, per second, and execution can still include slippage.
Example: $10,000 notional, 16-day term, 4 days remaining. The exercise fee is $10,000 × 1.9% × 4/16 = $47.50, before financing and execution loss.
My rule: verify the live fee state in the interface and calculate breakeven from total costs, not from strike and premium alone.
@TermMax #TermMax