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).
You can view the Exchange Traded Options Product Disclosure and Terms and Conditions, Best Execution Statement and Financial Services Guide, and should consider them before making any decision about these products and services. 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.
