Integrated Options trading

A CommSec Options Account allows you to trade Options just as easily as you trade shares. It’s designed to be used with your other CommSec accounts, including a CommSec Margin Loan, to create a range of investment strategies across your portfolio, from the simple to the sophisticated.

Whether you’re looking simply to protect the value of your existing portfolio or generate income or want to implement more advanced Options strategies, your CommSec Options Account can help you make the most of your investments.

Your Options Trading Account

Link your Options account to your CommSec Share Trading Account or Margin Lending Account to lodge shares as collateral. Provide cash margins from your linked CBA account or your CommSec Margin Lending Account. Place your Options trades online or over the phone; all trades settle one business day after execution.
The four levels of Options trading determine which strategies you can use, depending on risk levels. 

  • Level One: Buy to open
  • Level Two: Buy to open and sell fully covered calls
  • Level Three: Buy to open and sell fully covered calls or sell cash covered calls
  • Level Four: Advanced multi-leg strategies

Rates and Fees

Trade Execution

Minimum*

Above Minimum* (flat)

Internet (also charged upon exercise or assignment of the option)

$34.95 up to $10,000 in premium

0.35% (above $10,000)

Phone (also charged upon exercise or assignment of the option)

$54.60 up to $10,000 in premium

0.54% (above $10,000)

*All of the above brokerage rates are on a per trade basis and include GST

ETO Contract fees (per contract)

Amount per contract1

Equity Option Contract (Open/Close)

$0.13 (GST exclusive)

Equity Option Contract (Exercise/Assignment)

$0.05 (GST exclusive)

Index Option Contract (Open/Close)

$0.45 (GST exclusive)

Index Option Contract (Exercise/Assignment)

$0.35 (GST exclusive)

1ETO Contract fees have been set out on a GST exclusive basis as the total GST may be rounded in accordance with the GST law.

Fees and rates are subject to change

Other fees and charges

Amount

Option fail fee per day

$100

Late settlement fee

$100

Equity fail fee per day (assignment and exercise)

$100

Rebooking fee

$27.50

Who can apply?

You can apply for an Options Account if you are:

  • 18 years or older with an Australian residential and postal address; or
  • An Australian registered or incorporated company; or
  • An Australian trust or SMSF; and
  • Able to pass the Options Trading assessment

 

You must have the following:

  • A CommSec Share Trading Account in the same name; and
  • A Commonwealth Direct Investment Account (CDIA) or CommSec Margin Loan or CommBank account in the same name for settlement of trades

What you’ll need if you’re new to CommSec:

  • ID (e.g. driver’s licence or passport)
  • SMSF name and Australian Business Number (ABN)
  • Company details and Australian Company Number (ACN)
  • Certified copy of the Trust Deed (if applicable)

Get started

Open a CommSec Options Account

To trade Options with CommSec, you'll need a CommSec Share Trading Account and a Commonwealth Direct Investment Account (CDIA). To help you get started:

Already a CommSec customer?

Opening a CommSec Options account1 couldn’t be easier. Login to CommSec below and follow the prompts to add Options to your list of accounts.

Please ensure that you have our linked cash account2 or a CBA bank account to use for settlement.

Not a CommSec customer?

You’ll need to become a CommSec customer before opening an Options account1. Join now to open a standard Share Trading Account and select ‘Use our cash account’2.

It’s quick, easy to set up and you’ll be trading in a matter of minutes.

Frequently asked questions

To find out how to use the CommSec website to place an Options order, read the CommSec Options Web Guide.

Exercising an Options contract is where the buyer of an Option asks CommSec to complete the obligations of the Options contract. Learn more.

When you apply for a CommSec Options Account, you will be asked to select a trading level based on your previous options trading experience and your understanding and acceptance of the risks involved. There are four Options trading levels, which determine the type of strategies you can use on your account and the level of risk involved.
As you gain experience, you can move to a higher level by completing a CommSec Trading Level Upgrade Form.

CommSec recommends that you seek independent taxation advice before entering into any Options strategies. The ASX provides general information on Taxation Treatment of Exchange Traded Options.

Margins are essentially collateral - in the form of cash or share holdings - that you need to provide to ensure that you can meet your obligation in the event of an adverse market movement. Margins are only payable by Option writers (sellers); Options buyers do not need to pay margins.
Margins are calculated daily by ASX Clear, the clearing house for all shares, structured products, warrants and ASX equity derivatives. It calculates margins on all the written positions in your ASX Options portfolio, and the amount payable is the net amount on all positions.
The total margin required for open positions in a CommSec Options account are as follows:

Total Margin = (1 x Premium Margin) + (2.5 x Risk Margin)

To estimate your total required margin you can use the ASX Margin Estimator or refer to the ASX resource, Understanding Margins. It is important that you monitor your margin requirements, as they vary daily and must be covered at all times.
Please be aware that CommSec conducts daily stress tests on short positions which may result in your collateral requirements being higher than your daily total margins.

You can settle your margin requirements with cash, or by lodging eligible security with CommSec. The list of ASX Clear Acceptable Stock is determined by ASX Clear.

You can call us on 1800 245 698 from 8am to 5.30pm (Sydney time), Monday to Friday.
Alternatively, you can login to the CommSec website and request a stock release using the 'Portfolio' tab. Please note that you cannot request a stock release by email.
We will release your stock within 24 hours of receiving your online request, provided you still have sufficient collateral to meet your margin. Once your request has been processed, you will be able to view the changes to your linked share trading account online — units in the released stock will be moved from 'reserved' to 'available'.
If you wish to sell reserved stock, please contact us on the number above for it be released. Once it has been released you can sell it online or over the phone.

Automatic exercising is a feature where open positions that are due to expire in-the-money are automatically exercised for you, so you don't need to take any action.
We will automatically exercise any Options position that is in-the-money on the date of expiry, by one cent or more for share Options and one point or more for index Options.
If you don't want to exercise an Option that is in-the-money, you must notify CommSec no later than 4.30pm on the Option’s expiry date.
You can ask for automatic exercising to be disabled on your account for all positions.

The definition of ‘in the money’ depends on whether you are talking about a Call Option or a Put Option. (Although ‘in the money’ indicates a positive position, it does not guarantee a profit because it does not take into account the cost of your position.)
A Call Option is ‘in-the-money’ when the share’s current market price is above the call’s strike price. In other words, if you are the holder of the Call Option, you have the right to buy it for less than its current market price.
A Put Option is ‘in-the-money’ when the share’s current market price is below the Put’s strike price. If you are the holder of the Put Option, you have the right to sell it for more than its current market price.
‘Out of the money’ means the converse for Call and Put Options. A Call Option is ‘out of the money’ when the share’s current market price is below the call’s strike price; for a Put Option, it is ‘out of the money’ if the current market price of the share is above the Put’s strike price.
‘At the money’ means the same thing for both Call and Put Options: the Option’s strike price is the same as the current market price of the underlying share.

Financial Services Guide

The Financial Services Guide ("FSG") provides information about Commonwealth Securities to help you decide whether to use the financial services we offer.

Download the Financial Services Guide

Product Disclosure Statement

This document outlines how the product operates; overview, benefits, risks and complete costs. It also provides details about the application process and next steps.

Download the Product Disclosure Document

Important Information


1 The target market for this product can be found within the product’s Target Market Determination, available here.

2 The target market for this product can be found within the product’s Target Market Determination, available here.

The information on this site has been prepared without taking into account the objectives, financial or taxation situation or needs of any particular individual. For this reason, any individual should, before acting on the information on this site, consider the appropriateness of the information, having regards to the individual's objectives, financial situation and needs, and if necessary, seek appropriate professional advice.

A Product Disclosure Statement for Exchange Traded Options (Options) issued by Commonwealth Securities Limited ABN 60 067 254 399 AFSL 238814 is available from www.commsec.com.au and should be considered before making any decision about the product. There can be high levels of risk associated with trading in Options; only investors familiar with the risks of Options trading should consider these products.

 

 

Disclaimer

This site is directed and available to and for the benefit of Australian residents only. © Commonwealth Securities Limited ABN 60 067 254 399 AFSL 238814 ("CommSec") is a wholly owned, but non guaranteed, subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945 and both entities are incorporated in Australia with limited liability.

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