Small Stakes - May 26, 2022 - How Much Do Options Cost

Buying power requirements (BPR) are the largest costs to trading options, and they can vary widely depending on the products you're looking to trade options on. Errol and Frank compare stock options to shares of stock, and they find that options cost much less per unit of exposure. Next, the guys rope in futures options, which can cost a fraction of stock options.Frank highlights some back-of-the-envelope math for pricing BPR on a whole slew of products while showing off the different costs for metals exposure using the Gold ETF (GLD) and Small Precious Metals futures (SPRE).