My earlier comparison of optionsXpress (OXPS) to E*Trade (ET) was not meant as an endorsement for buying (or selling) either stock, I was simply comparing their sizes and noting that OXPS is still a relatively small firm. What I was trying to highlight, though I apparently didn't make it clear, is that firms, no matter what the size, are seeing their option business grow at about double the pace of their equity business. Obviously a small firm that focuses on options like OXPS gets the most leverage from this trend.
As far as platforms, thinkorswim is probably the best for fairly sophisticated traders. It's "one click" for multi-leg or option/stock orders, and the drop-down menu that allows you to look at a variety of spreads across the option chain is great.
OPXS has what most traders need in terms of tools, features and the trade page, but it is still geared towards sophomore or junior traders.
One firm that might be worth a look is tradeking.com. It's very new, about a month old, and fairly bare bones in terms of page presentation, but it has some nice option tools they have tweaked from ivolatility and their rates are as cheap as anyone.
I am not that familiar with Interactive Brokers, but from what I've seen they would also be a better choice for active option traders than any of the "mainstream" brokers, such as E*Trade or Schwab.
P.S. Will you be there when Cramer makes his next move?
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Steven Smith Blog That Tempting Volatility 1/24/2006 7:39 AM EST We're back in the volatility cycle again, where it's an opportunity to sell premium.
Steven Smith writes regularly for TheStreet.com. In keeping with TSC's editorial policy, he doesn't own or short individual stocks. He also doesn't invest in hedge funds or other private investment partnerships. He was a seatholding member of the Chicago Board of Trade (CBOT) and the Chicago Board Options Exchange (CBOE) from May 1989 to August 1995. During that six-year period, he traded multiple markets for his own personal account and acted as an executing broker for third-party accounts. He appreciates your feedback; click here to send him an email.To read more of Steve Smith's options ideas take a free trial to TheStreet.com Options Alerts.
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