Due to options' short life span, option portfolios tend to have a much higher degree of trading activity than stock portfolios. This means that options traders must be very aware of commission costs, which can add up quickly, eating away at your bottom line.In an effort to help you avoid and reduce high commission costs, I recently shared 8 Ways to Reduce Your Commission Costs. One of my tips was to select the cheapest strategies, i.e., the strategies that incur the smallest commission costs per dollar invested. The ideal strategies are actually thesimplest, because the fancier the strategy gets, the more expensive it is.
So here are the five options strategies that incur the lowest commission costs, beginning with the most attractive from a commission standpoint and following in descending order.
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