# OTC Options



## ScottyfromAussie (10 December 2010)

Hi there

I'm quite interested in writing puts, couple of stock I'm interested in and I'd like to buy them at discount.

Anyone know brokers who do OTC options? A google search surprisingly yields little results. Thought they'd be jumping out for my business...

p.s. be awesome if we didn't turn this into a discussion about how I'm goin to lose all my money.

p.s. oh yeah I know there's Interactive brokers but wouldn't mind checking out the competition


----------



## cutz (10 December 2010)

Vanilla puts, why waste your money with OTC, which series are you interested in ?


----------



## ScottyfromAussie (10 December 2010)

Actually was looking at puts for JBHIFI (JBH) and the reject shop (TRS), they have no ETO's


----------



## cutz (10 December 2010)

OK gotcha,

It probably none of my business as I only deal with ETO’s but you may want to rethink you strategy.Sounds like you’re bullish on those stocks.

May I ask why you feel that OTC naked puts are the way to go ?


----------



## ScottyfromAussie (10 December 2010)

Yeah I'm pretty bullish. Good to be greedy when others are fearful as Buffet says..

I don't really mind whether the broker is OTC, Exchange based or up in the clouds. I just wanna know where to write/buy puts and calls on stocks of my choosing.

As long as it has reasonable regulation and decent price its all good to go. I'd be happy to buy the stock as well so not so much of a loss for me if the put is excercised against me


----------



## wayneL (11 December 2010)

ScottyfromAussie said:


> As long as it has reasonable regulation and decent price its all good to go.



Therein lies the rub.

I don't do OTC options either.

But have a look at the lesser traded ETOs, their spread and behaviour in fast moves. I would imagine that the spread would be even wider. If you find someone to deal with you, it's going to be on THEIR terms.



> buy them at discount




Sorry Scotty I don't mean what follows to be offensive, please don't see it that way. But this is another little irritating phrase that has snuck out from option spruiker La La Land.

It should be kept in the realm of the Pixie world of wealth(for the presenter) seminars and never let out into the real world.


----------



## ScottyfromAussie (11 December 2010)

So no1 knows any brokers for OTC options other than IB?


----------



## mazzatelli (11 December 2010)

ScottyfromAussie said:


> So no1 knows any brokers for OTC options other than IB?




If you have large notionals [i.e. millions of dollars] then you can transact with the banks.
OTC isn't catered for retail


----------



## cutz (12 December 2010)

ScottyfromAussie said:


> So no1 knows any brokers for OTC options other than IB?




Give comsec structured products a ring, make sure you let us know how you go.


----------



## ScottyfromAussie (12 December 2010)

sure dude, but probably won't be for a while.

I'll spend maybe 4-5 more months on this before I get stuck in with real money


----------

