Selling/Writing options

[Buffet]

Hi everybody,

Hey I am looking to sell out of the money put and call options on stocks that I do not own. I am lookng to do this on the Australian exchange.

Anybody have experience with this?
Any idea on what kind of transaction costs are associated with this?
Anybody know what kind of security, or how much I would have to have, if any to undertake such positions?
Anybody know of a company that this can be done through?
Any other useful information?

Cheers,
Chris

[Vintage73]

You can certainly do this but remember if you do this “naked” meaning that you are unhedged, and the market turns against you then you will be required to cough up a lot of dough.

I thoroughly recommend you undertake a more sophisticated option strategy than simply selling calls and puts naked. You can still stand to make 400% returns but only stand to lose the cost of the options in the worst case.

There is a free 2 hour seminar coming up (sorry, the site was down at time of post) run by Optionetics which is worth going to and you register for it online.

You can purchase their study course on trademe for about $350 too. The material is great – books, cds and dvds.

If you want to attend their seminars then it will cost you thousands just so you know. The trading software also costs thousands btw.

Good Luck!!

[Biggle]

Hi Vintage,


Does Optionetics work the same as AvaTrading?


Cheers
B.