Equity Options are Derivative Instruments that give investors the right, but not the obligation to buy (Call Option) or sell (Put Option) Shares at a fixed price at a future date. Equity Options are traded on South Africa’s largest and most liquid companies as well as being available on most FTSE/JSE indices. The product is easily accessed through Equity Derivatives members and can be either physically settled or cash settled.
Equity Options are used by a number of market participants, including investors seeking exposure to Share price movements for a fraction of the cost of the actual Share, investors who are uncertain whether to buy or sell Shares and need time to decide, and hedgers seeking to reduce risk by protecting an existing Share portfolio against adverse price movements.
To trade, an investor has to register as a client with
an authorised JSE Equity Derivatives member.