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An option is a derivative instrument that gives the investor the right (not the obligation) to buy (call option) or sell (put option) shares at a fixed price on a future date. Options provide a cost-effective way of obtaining a large amount of exposure with very little risk.
Life is a choice
Benefits
- Protect the value of your shares
- Gain exposure to movements in the share price for a fraction of the cost of purchasing the shares themselves
- Your maximum loss is limited to the premium (deposit) paid
- Investors have time to decide if they want to excercise the option
- Take advantage of unique opportunities with option trading strategies
- Extra return through covered calls
Who should use this product?
- Investors wanting exposure to share price movements for a fraction of the cost of purchasing the actual shares
- Investors who are uncertain whether to buy/sell shares who need time to decide
- Risk-averse investors wanting to limit their loss to only the premium paid
- Hedgers seeking to reduce risk by protecting an existing share portfolio against adverse price movements in the physical (spot) market
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Learn more about Equity Options |
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