The anti-hawking rule only applies on Sundays or public holidays as far as im aware. You are allowed to call people and talk about your products and services, but if your offering specific advice you need to provide a FSG and PDS as soon as practicable.
They may have changed it since I last worked for a license holder (major bank), but when I last did (2006), they were not allowed to cold call. The customer had to make the enquiry first.
The cold calling is dodgy but nothing wrong with the strategy. Naked short put = covered call and plenty of mum and dad investors are doing that one. Just have to make sure you have the cash to buy the stock if exercised and only write against stocks you dont mind owning. What sort of fees do they try to charge?
Good practice would be knowing the client's situation before suggesting specific trades.
The cold calling is dodgy but nothing wrong with the strategy. Naked short put = covered call and plenty of mum and dad investors are doing that one.
I will triple check it when i get home, but at the mo im studying for AFMA accreditation to work for an AFSL and am 99% confident that AFSLs can cold call, but not on Sundays or public holidays.
I know of lots of insurance co's etc that do it...
Good practice would be knowing the client's situation before suggesting specific trades.
My suggestion would be that mum and dad investors stay away from options, especially naked puts and covered calls.
When holding short naked puts that warm feeling of " I wouldn't mind owning that stock" quickly disappears when the market is getting trashed, especially if volatility wasn't considered in the first place.
The cold calling is dodgy but nothing wrong with the strategy. Naked short put = covered call and plenty of mum and dad investors are doing that one. Just have to make sure you have the cash to buy the stock if exercised and only write against stocks you dont mind owning. What sort of fees do they try to charge?
Good practice would be knowing the client's situation before suggesting specific trades.
Not a strategy for those with poor risk management practicesNearly got wiped out in March. Got exercised and didn't have enough collateral to cover margins. Its been good the last 8 months obviously, because implied vol has been high and market going up. I wouldn't recommend anyone with less than 2 years options trading experience and steely discipline touch naked puts.
lol are you kidding me?
Nearly got wiped out in March because "Got exercised and didn't have enough collateral to cover margins" and you think you don't have poor risk management practices?
You can keep that sort of trading thanks.
Agree, you wouldn't do it on a stock that's crashing. It's a flat strategy, so you'd pick a stock you think will not fall below a certain level, but not rise too much otherwise you're better off just going long stock. e.g. you think one of the banks is good value if it falls x%, and has good technical support around that area, but you don't expect it to rise dramatically either. Not for everyone timing important.
:jerry:alcohol::kiffer:
Wot more can i say .............
Agree, you wouldn't do it on a stock that's crashing. It's a flat strategy, so you'd pick a stock you think will not fall below a certain level, but not rise too much otherwise you're better off just going long stock. e.g. you think one of the banks is good value if it falls x%, and has good technical support around that area, but you don't expect it to rise dramatically either. Not for everyone timing important.
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