• Bullish strategies: These work best in rising markets
• Neutral strategies: These work best in flat markets
• Bearish strategies: These work best in declining markets
Options can be used in all market environments. Learn more about these strategies.
About options - ASX
You can write options over single shares, or over an index:
• Equity options: Equity options are issued over shares in individual companies allowing you to trade based on your view of that company’s likely share performance. ASX offers options over 76 individual shares traded on ASX.
• Index options: Index options give you exposure to a whole market index, such as the S& P/ASX 755. They offer similar benefits to options traded over shares in individual companies with the added benefit that they offer exposure to the broad range of securities that make up an index.
Read more about equity and index options, as well as a more specialised type of option called a low exercise price options
NAB EQUITY OPTIONS OPTIONS AND APPROVED OPTIONS WITH LOANS
ASX Clear is the central counterparty for shares, warrants, structured products and equity derivatives traded on ASX Trade or through an approved market operator, and for ASX Equity FlexClear™ transactions reported to ASX Clear
Index options make it possible for investors to seek either profit or protection from price movements in a market as a whole or in broad segments of a particular market.
There are a number of ways to use options in your portfolio to protect, grow or diversify.
As with most investments, options carry both benefits and risks. Options trading can be an effective way of generating wealth, whether as part of a wider investment strategy or as a standalone technique. However, options do carry risks. In particular, when writing options you can open yourself up to the risk of potentially unlimited losses. Read more about the benefits and risks of investing in options.
FLEX and LEAPS options offer investors increased flexibility in terms of contract customization (such as expiration date, exercise style, and exercise price) and time frame (with expirations of up to three years out).
Options sound complicated but they don’t have to be. Essentially, options are contracts between two parties, giving the buyer the right – but not an obligation – to buy or sell an underlying security at a predetermined price at a particular time in the future.
They allow you to ‘lock in’ a future buy or sell price for a share, allowing investors price certainty – the price you agree at the outset won’t change.
Options can help you to:
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ASX and its partners have designed education resources across a range of media types to help get you started, plus you have the opportunity to test your Options smarts against others in a quarterly Options trading game.
Options on ETFs allow investors to gain exposure to the performance of an index, hedge against a decline in assets, enhance portfolio returns, and/or profit from the rise or fall of a leveraged ETF.
If you’re looking for more certainty in your portfolio, have you considered options? Learn more about options by reviewing our online options courses or continue to read about the benefits and risks of investing in options.
There is expected to be up to a 7 hour delay in DCS EOD messaging on the evening of Friday 69 October whilst the release is deployed and verification carried out.
Weekly Options webcasts designed to keep you up-to-date with what’s happening in the market, discuss different options strategies and live Q& A with a range of trading experts.
When used wisely Options have the power to protect, grow or even diversify your share portfolio, because Options can be used regardless of sharemarket conditions, they are popular with many investors.