Long term ATM calls ASX

[andybear421]

Hello All!

I have only been reading up on investing and finance over the past couple of years and have built up a small dividend portfolio.
While that is going fine I have developed an interest in LEAPs. However, across my research it seems options in the ASX is not encouraged (unlike in the US markets).
So my questions are:
1) are LEAPs an appropriate strategy and utilising leverage?
2) if THey aren't, why not and what other options do i have?

 

[Gunnerguy]

Hello All!

I have only been reading up on investing and finance over the past couple of years and have built up a small dividend portfolio.
While that is going fine I have developed an interest in LEAPs. However, across my research it seems options in the ASX is not encouraged (unlike in the US markets).
So my questions are:
1) are LEAPs an appropriate strategy and utilising leverage?
2) if THey aren't, why not and what other options do i have?

Andy
You’ll find lots of comments on ASX options on the forum and there is a bit of a feeling that it’s not worthwhile due to the spreads.
I decided anyway to try to get some additional ‘profits’ from trading and started in June. There are some in the forum who trade literally hundreds of option trades a year. I have started small but growing in confidence.
Not an expert by ANY MEANS, but lots of reading, analysis and education. Only 37 (small ) trades so far but I am still in the green. Generally hedging against my investment portfolio holdings.
Gunnerguy.

 

[tech/a]

There are many ways of trading options.
Its a trading methodology all of its own.
Don't trade them myself.
For leverage I use Index Futures.
Lot simpler.

But an experienced Options Trader has all sorts
of Strategies that they can apply in a great number
of financial situations.

 

[andybear421]

There are many ways of trading options.
Its a trading methodology all of its own.
Don't trade them myself.
For leverage I use Index Futures.
Lot simpler.

But an experienced Options Trader has all sorts
of Strategies that they can apply in a great number
of financial situations.

where can i learn about index futures?

 

[andybear421]

Andy
You’ll find lots of comments on ASX options on the forum and there is a bit of a feeling that it’s not worthwhile due to the spreads.
I decided anyway to try to get some additional ‘profits’ from trading and started in June. There are some in the forum who trade literally hundreds of option trades a year. I have started small but growing in confidence.
Not an expert by ANY MEANS, but lots of reading, analysis and education. Only 37 (small ) trades so far but I am still in the green. Generally hedging against my investment portfolio holdings.
Gunnerguy.

Ok cool so that gives me a some confidence!
What sort of calls are you buying? if you're buying calls at all.

 

[tech/a]

There are all sorts of futures from Indexes to Commodities to FX I trade Indexes.
There are all sorts of Basic books on Futures and a few threads here.

You'll need the $s to cover margin and a broker like IB (Interactive brokers) Single Contract up front margin is
around $6-8 K a contract so if you wish t trade say 5 SPI contracts its about $40K in margin required.

If you dont have that sort of coin you should not be trading leveraged products.

 

[Gunnerguy]

Ok cool so that gives me a some confidence!
What sort of calls are you buying? if you're buying calls at all.

Buying/selling calls/puts, naked/covered, vertical spreads, strangles, straddles. Considering Calendar spreads sometime in the future.
Gunnerguy