Options

Grow Your Wealth Townsville

Grow Your Wealth has extensive derivatives experience to assist with your specific derivatives requirements.

Options are flexible tools for experienced investors. They can be used to:

  • Profit from a view, even when the market is falling or static

  • Benefit from share price movements for less than the cost of a direct investment

  • Earn extra income from your portfolio

  • Protect your existing investments

In addition to the above potential benefits of dealing in options as with any leveraged investment product there are associated risks and they are not suited to all investors. Our derivatives specialists can assist you in assessing whether dealing in options is suitable given your circumstances and identify suitable potential options dealing strategies given your personal objectives.
 
For further information on options trading strategies see below:
 
Getting Started
In order to start trading options, you must:

  • read the Product Disclosure Statement for ETOs and LEPOs
  • read the Understanding Options Trading booklet on the ASX website
  • read and sign the Derivatives Client Agreement with Berndale Securities

Sufficient Cleared Funds
To buy a call or put option you must have:

  • Sufficient cleared funds in your nominated Cash Management Trust account or approved margin lender
  • Funds available after selling any existing long option positions, or
  • Funds available from the proceeds of a sale of shares. However these proceeds cannot be used to buy options until two days after the sale date of the shares.

Covered Call - sufficient underlying stock
To place a covered call trade you must ensure that you hold sufficient underlying stock for lodgement to the ACH.
 
Call Buy/Writes
For call buy/writes you must ensure that you have:

  • purchased the stock prior to entering the order to write the call option on the same underlying.
  • sufficient cash to buy the stock, and
  • sufficient cash margin for your written call until the bought stock has settled and has been lodged with the ACH (usually on T+4).

Long/Short Options Positions
For long option positions you will have a positive portfolio holding, and subsequently short option positions are represented by a negative holding.
 
Written Call Options

If you are assigned on your written call option positions, you will be required to settle the trade by using your lodged stock collateral to offset your written call position. An exercise fee levied by the ACH applies.
For more information on our services please contact your Grow Your Wealth Investment Advisor.
 
Please also view our Product Disclosure Statement for ETO’s and EPO’s for further details on dealing in options.

When you are ready to grow your wealth, give us a call on 07 4771 4577.

PS. For all the latest investment tips, education and market reports subscribe to Grow Your Wealth, your complimentary email newsletter.

GROW YOUR WEALTH PTY LTD
ABN 60 130 727 981
AFSL 403509

Please note: The above is general advice only and does not take into account your personal objectives, financial situation or needs. Before taking any action you should consider the appropriateness of the above advice as it may apply to your personal circumstances.