Is a separate commission charged on each leg of a spread order?

If the short call leg of a covered write position is assigned, the long stock position will be applied to satisfy the stock delivery obligation on the short call. The price at which that long stock position will be closed out is equal to the short call option strike price…

In the case of U.S. securities options, the OCC will automatically exercise option contracts at expiration only if the option is in-the-money by $0.01 or greater.

As a result, account holders maintaining a call (put) spread with the short leg having a lower (higher) strike price that the long are subject to delivery risk if the short leg is in-the-money by $0.01 or greater and the long leg is not…

Modified orders will be treated as the cancellation and replacement of an existing order with a new order. On certain exchanges, this may have the effect of subjecting modified orders to commission minimums as if they were new orders. For example, if an order for 200 shares is submitted and 100 shares execute, then you modify the order and another 100 shares execute, a commission minimum would be applied to both 100 share orders. Orders such as a GTC (Good-til-Cancel) order that persist overnight will be considered a new order the next day for the purposes of determining order minimums…

In the case of a rollover order, each leg of the spread is treated as an independent order for commission purposes.

More information on commissions can be found on our website…