Options & Warrants

About
Costs

Options and warrants are flexible tools for experienced investors. You can use them to:

Profit from a view, even when the market is falling or static.
Benefit from share price movements for less than the cost of a direct investment.
Earn extra income from your portfolio.
Protect your existing investments.

With CommSec, you can trade Options and warrants just as easily as you trade shares. CommSec has been trading in options since November 1996, so we have a highly experienced team of ASX accredited options traders ready to assist you.

While CommSec has now made options trading easier, you do need to keep in mind that there can be high levels of risk associated with trading in options. It is important for you to ensure that you have a clear understanding about this style of derivative. The new features that CommSec offers ensures your risk can be easily monitored. For this reason, to become an options client, you need to apply using the Exchange Traded Options Application form found within the Exchange Traded Options Product Disclosure Statement (PDS).

Options Calculators

Option theoretical Price Calculator

The ASX's Option Theoretical Price Calculator will calculate an Option's theoretical fair value. (Note, this calculator will open in new window and direct you to the ASX site.)

Learn more:

What is Theoretical Fair Value?

I can do that!

The strategy.

In November 2011 Geoff bought 1,000 shares in Woolworths Limited (WOW) for $24.50 a share. By January 2012 WOW was trading at around $25.30. Geoff believed that the market would trend sideways over the next few months. So he decided to use call options to earn some extra income from his portfolio.

How he did it.

Geoff wrote 10 call option contracts (100 shares per contract) over his WOW shares with an exercise price of $26.50, expiring in February 2012. In return, he earned a premium of $0.40 per share.

The result.

Geoff has earned an extra $400($40 per contract x 10 contracts) in premium income from his shareholding.

If WOW rises above $26.50, he could:

have to sell his shares at the strike price of the call options and realise his gains;
close his position by buying back the call options and benefit from the higher share price; or
roll his options up to a higher exercise price and/or out to a future expiry date.

Tax and brokerage have not been taken into account. This example is for illustrative purposes only. The name and identifying features do not reflect any particular person; any resemblance to a real person is coincidental. The shares and options mentioned on this page are given as examples only; this does not represent a recommendation from CommSec to buy, sell or hold any stock or option. Past performance is not an indicator of future performance. Fees & charges apply.

The information on this site has been prepared without taking account of the objectives, financial situation or needs of any particular individual. For this reason, any individual should, before acting on the information on this site, consider the appropriateness of the information, having regards to the individual’s objectives, financial situation and needs, and, if necessary, seek appropriate professional advice.

A Product Disclosure Statement for Exchange Traded Options issued by Commonwealth Securities Limited ABN 60 067 254 399 AFSL 238814 is available from www.commsec.com.au and should be considered before making any decision about the product.

Trade Execution	Minimum	Above Minimum (flat)
Exchange traded options1 over the phone (also charged upon exercise or assignment of the option)	$54.60 up to $10,000 in premium	0.54% (above $10,000)
Exchange traded options1 over the Internet (also charged upon exercise or assignment of the option)	$34.95 up to $10,000 in premium	0.35% (above $10,000)