WHY TRADE OPTIONS
Protect your portfolio with PUT options
An option is a contract which gives the holder the right, but not the obligation, to buy or sell an underlying asset at a specific price within a specific period of time.
The two most common types are Call and Put options:
TRADE OPTIONS ON
Options traders utilise options in many different ways. The great thing about options in the many and varied strategies give you great flexibility allowing you to take advantage of any market view. For example if you were expecting the market to rally a trader could simply buy a call option, but depending upon the view and timeframe a trader could also enter into a bull call spread, sell an in the money put option or sell a bull put spread. Whilst the terms can sound complicated a quick Google search should bring up the different types of options strategies available and the advantages and disadvantages of each. Perhaps, in the most basic form, the main premise in options trading is that the buyer of an option enters into a limited risk position with the premium paid being the most the trader can lose, whilst the option seller takes significant risk if the price moves against the options sellers position in a large way. When selling options the potential loss is only capped if the underlying price goes to zero in the case of a sold put or if selling call options the potential loss is uncapped if no other positions or legs have been added to limit risk or meet delivery. In other words its riskier to be an option seller than an option buyer, but when used correctly option selling can be a great way of generating income from receiving option premiums, you just need to understand the risks and limit leverage.
Build any options strategy utilising up to 8 legs and execute as one order. The platform lets you wither buy or sell your strategy and gives pricing based upon the combined position.
Set price alerts for the underlying security or even on the options being traded so you receive notifications when trigger levels are breached. Alert Notifications come in a number of forms for added flexibility.
What If Analysis
View the payoff diagrams of your strategy to view the risk rewards ratios of your planned trade. Adjust for changes in volatility and price and analyse your strategy based upon the number of days to expiry.
Trade weekly options on large stocks and exchange traded funds and take full advantage of time decay in the final week of an option. On some market such as SPY bi weekly options are available.