What are some useful options strategies?

Depending on whether you are looking to protect your portfolio during a falling market, or generate additional income during a flat market, there are a range of options strategies that you may wish to consider.

Protective Puts
Hedge your stocks against a fall in value and provide protection in times of market uncertainty.

Covered Calls
Generate additional income on your existing share holdings in a market that is flat to moderately bullish.

Buy-Write strategy
Buy shares to write covered calls against the shares. This strategy should be used in conjunction with the covered call strategy.

Cash Covered Short Put
Use options in a similar way to a "Limit" buy order, but with the advantage of getting paid for writing the Puts.

For more information on trading options with CommSec please visit the product page by logging in and navigating to Products > Options. Alternatively, contact the CommSec Options Desk on 1800 245 698 (8:00am to 5:30pm, Monday to Friday, Sydney time).

Please consider the ETO Product Disclosure Statement (PDS) issued by CommSec available from commsec.com.au before making any decision about Exchange Traded Options (ETOs). This information has been prepared without taking account of the objectives, financial situation or needs of any particular individual. For this reason, any individual should, before acting on the information, consider the appropriateness of the information, having regard to the individual's objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

 

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.

By clicking on the "Download the CommSec App" buttons above, you will be directed to itunes.apple.com or play.google.com. These sites are not affiliated with CommSec and may offer a different Privacy Policy and level of security.

Top