Options

We are accredited ASX Level 2 Derivative advisors and can advise, assist on any Options Strategy for your investment needs. Stop losses on Options and Shares which are managed, placed and executed.

For a Free Options Starter Kit Click here

ETO’s- ASX Exchange Traded Options

Exchange traded options (ETO) market has grown substantially since 1976. Options provide investors with a versatile investment alternative. They provide investors with protection for their share portfolio and opportunity for profit.

However, with any investments, risk of loss is involved and may not be suitable for all investors.

What are options?

An option is a contract between two parties giving the buyer the right, but not the obligation, to buy (call) or sell (put) a parcel of shares at a locked in price on or before a predetermined date. To acquire this right the buyer pays a premium to the seller of the contract.

Common Advantages and Characteristics of Options

• Risk manage existing share holdings against a fall in their value
• Gives time to investors to purchase and sell shares at a locked price
• Investors can benefit from reduced capital outlay rather than purchasing shares outright.
• Risk is limited to the price paid for the option
• Options can be easily traded speculatively with no intention of exercising them.
• Traders can possibly benefit if a share price falls through the use of a PUT OPTION
• Potentially EARN extra income over and above dividends by writing options against their shares

Frequently Asked Questions

Do options have a higher risk profile than other investments?

The risk is limited to the premium paid for the option.

What is an exercise price?

A predetermined price to buy or sell the underlying asset at a future time.

How are Option premiums determined?

Option premiums are determined by intrinsic value and time value. Intrinsic value is the difference between the exercise price of the option and the market price of the underlying shares at any given time. Time value is influenced by time to expiry, market volatility, interest rates, dividend payments and market expectations.

How can I find a properly qualified broker to assist me in options trading?

We are accredited ASX Level 2 Derivative advisors and can advise and assist on any Options Strategy for your investment needs.

How do I open an options account?

By simply calling 1800 732 525 to setup an account over the phone, or by
completing and signing the Client Agreement for Exchange Traded Options form.

CK Locke and Partners utilise Sanford Securities (ACN 076 515 930) a member of the ASX and Licensed Securities Dealer as the Clearing Broker and Full ASX Participant.

For More Information

Introduction to ASX Option Booklet


Understanding Option Strategies


Option Securities