optionsXpress, Inc., a subsidiary of optionsXpress Holdings, Inc. (Nasdaq:OXPS) today introduced improved pricing for multi-leg strategies, or spreads, for its customers. Beginning today, optionsXpress will consider option spreads a single trade to calculate commission if all "legs" are executed simultaneously. Previously each leg was considered a separate trade.
CHICAGO (BusinessWire EON) August 1, 2007 --
optionsXpress, Inc., a
subsidiary of optionsXpress Holdings, Inc. (Nasdaq:OXPS) today
introduced improved pricing for multi-leg strategies, or spreads, for
its customers. Beginning today, optionsXpress will consider option
spreads a single trade to calculate commission if all “legs”
are executed simultaneously. Previously each leg was considered a
separate trade.
Under the new pricing, commissions for multi-leg trades with up to four
legs will be $1.25 per contract, with a $12.95 minimum for customers who
trade more than 35 times per quarter. The commission rate for customers
who trade less frequently will be $1.50 per contract, with a $14.95
minimum.
“As retail investors become better educated,
they are using more advanced option strategies designed to maximize the
return and limit the risk in their portfolios,”
said David Kalt, Chief Executive Officer of optionsXpress. “As
a result, spread trades such as straddles, butterflies and condors have
grown quickly in popularity among optionsXpress customers.”
Under the new pricing, spread commissions are reduced as much as 75%. On
a five-contract, two-leg spread trade the new commission is $12.95 for
active traders, compared to $25.90 under the old pricing. For a
five-contract condor (a four-leg strategy), the new commission is $25.00
compared to $51.80 previously.
In addition to the improved spread pricing, customers will continue to
benefit from optionsXpress’ wide range of
spread-centric tools and services, including Xspreads®,
which finds opportunities for price improvement, fully electronic
execution for all spreads, a zero-fee policy for broker-assisted trades,
world-class customer service and comprehensive online and event-based educational
resources.
“We are pleased to be able to facilitate our
customers’ increased use of multi-leg
strategies,” added Kalt. “While
our new ’One spread, one trade’
approach to pricing is a relatively small change for our business, it is
a significant enhancement for our customers, who can now make decisions
based more on what strategy fits their investment objectives, and less
on the commission.”
About optionsXpress Holdings, Inc.
optionsXpress Holdings, Inc., a pioneer in equity options and futures
trading, offers an innovative suite of online brokerage services for
investor education, strategy evaluation and trade execution.
optionsXpress Holdings subsidiaries include optionsXpress, Inc., a
retail online brokerage specializing in options and futures, and
brokersXpress, LLC, an online trading and reporting platform for
independent investment professionals. Barron's named optionsXpress the
number one online broker for four years in a row (2003 to 2006) and
Kiplinger's Personal Finance named it the top discount broker in 2006.
www.optionsxpress.com
www.brokersxpress.com
More information can be found in the Investor Relations section of
optionsXpress' website at http://www.optionsxpress.com/investor.
Safe Harbor
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statements relate to future events or our future financial performance
and involve known and unknown risks. We urge you to carefully consider
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including risks related to general economic conditions, regulatory
developments, the competitive landscape, the volume of securities
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such as "may," "will," "should," "expects," "intends," "plans,"
"anticipates," "believes," "estimates," "predicts," "potential,"
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results may differ materially. The forward-looking statements made in
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We undertake no ongoing obligation to update these statements.
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