Company traded options

[prawn_86]

I think this has been mentioned before, but i was wondering if anyone could give me any help with company traded options, or a link to a good starting point.
1. can you just trade options using an online broker? (etrade etc)
2. how does the excercising of them work briefly?
3. can you just buy and sell like a normal stock or do you have to wait for certain dates etc?
4. how do you choose the correct options? is it the same as for shares or are there extra things which need considering?

sorry if this is too simple, but any help is appreciated.
regards
Shaun

 

[bvbfan]

Do a search for options, I posted some info earlier

Shares and company options trade on same platform (SEATS) so no difference to trading shares

The options can be exercised at any point upto the exercise date, you may need to get in contact with company to get exercise notice form.
Also in the week or so before expiry the options will cease trading so can be some chances to buy options that are in the money well under fair value.

Company options generally only have a few series so you really need to look at exercise price and date and number on issue.

 

[Damuzzdu]

Prawn_86,

Good source is www.tradingroom.com.au

Enter stock code in top right hand corner. This will take you to a quote page, and on the LHS there is a column with one of the links called "related securities", click this and will it display any company related options that are currently available. To then view details of that options click the link.

Most company options have an "O" as a suffix to the main code, but there are some expections. As bvbfan said there tends to be only 1 or 2 option series available on company options so choosing is not that hard.

Options can (stress can) provide excellent leverage and at times you might find options trading at a good discount to the heads once you take into account the excercise price.

Cheers
John