# Writing covered calls with CommSec



## winterstide (6 April 2007)

I have recently just started in options and I use Commsec as my broker.

I understand the basics about options, but I don't understand how settlement works with CommSec.

Reading their information, they said that with a CDIA payment should be made T+1 of the premium.

I wrote a fairly small covered call option only worth about $150. However, about 2 days after the trade, I get about $430 deposited in my CDIA account from Commsec, and I have done no other trades in that period.

The options were not exercised, and my collateral statement shows (being covered) the full underlying shares as the collateral.

I am confused, is this an accounting error?


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## Glenhaven (6 April 2007)

For script covered call sales you should simply get the premium you sold the options for. Unless you had some other uncovered positions open for which you may have had deposits released.


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## winterstide (6 April 2007)

It was the only open position I had? This is why I am confused. I guess I should just call them next week.


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## Glenhaven (6 April 2007)

Yes you should ring them to explain, maybe there is something else. As you say if the sale was worth $150 that's what you should have got credited.

They had not previously taken a deposit until you started trading?


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## Mofra (6 April 2007)

winterstide,

You should be getting two adobe files daily from Commsec, a Position & Financial Activity Statement and a Collateral Holding Statement.

Your position statement should detail you margin, what is used (ie a breakdown between stock & cash) & an update of cash movements from the previous statement. Your first statement should also clearly note how much you have gained in "premium sells" and if this does not match the entries to you CDIA, notify Commsec immediately as it is possible someone else's trading movements may be linked to your account (I've heard of this happening before).

Cheers


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