Spreadbetting Options

[Doc_P80]

Dear all,
I am new to the forum and being spreadbetting for over 2 years.

Recently I have been trading Options via an US account, but I would like to benefit of the SB UK policy.

I currently trade Index and Oil options using IG, but:

1- Cannot see anything more than the price. Do you know of any SB firm who offers a better platform to SB options, where also greeks are available?

2- Do you know any SB firm who offers also options SB on US shares (and not just Index/futures)? IG does it but only over the phone, which makes online trading almost impossible.

3- Do any of you guys SB on options at all?

Thanks
Stefano

 

[tomorton]

What would be the point of spread-betting on options on a share rather than spread-betting on the share itself?

 

[EnlightenedJoe]

Foroom is the leading expert on options. He'll help you when he wakes up from big ben's bongs.

 

[kalott]

you need to activate prorealtime

"Option chain window

* New option chain window available
* Search for an underlying instrument using the search bar, the select it to display related options
* You can choose an expiration date and filter by minimum and maximum strike price
* You can place orders by clicking in the ask or bid columns
* Performance charts can be opened by clicking on the icon-option icon"

https://www.prorealcode.com/topic/prorealtime-version-10-3-complete-list-features/

 

[mpups]

What would be the point of spread-betting on options on a share rather than spread-betting on the share itself?

its basically just trading options, just like spreadbetting is just trading (although different in ways which are discussed elsewhere!)

you need to activate prorealtime... Option chain window...]

thanks alot kalott i didnt know you have this on prorealtime/ig

 

[tomorton]

its basically just trading options, just like spreadbetting is just trading (although different in ways which are discussed elsewhere!)

Exactly. So if you want to trade via traded options, what's the advantage in spread-betting against the price of traded options? Why not just trade in traded options?

 

[mpups]

Exactly. So if you want to trade via traded options, what's the advantage in spread-betting against the price of traded options? Why not just trade in traded options?

i don't think there is an advantage its just convenient to use your SB account if that's where you generally trade. Have you seen the IG or city index SB platforms?

 

[tomorton]

i don't think there is an advantage its just convenient to use your SB account if that's where you generally trade. Have you seen the IG or city index SB platforms?

I have just started using an IG demo account but not at all familiar with it yet.

 

[Doc_P80]

What would be the point of spread-betting on options on a share rather than spread-betting on the share itself?

No Tax on the trade. Same reason why I spreadbet rather than Share dealing

 

[Doc_P80]

you need to activate prorealtime

"Option chain window

* New option chain window available
* Search for an underlying instrument using the search bar, the select it to display related options
* You can choose an expiration date and filter by minimum and maximum strike price
* You can place orders by clicking in the ask or bid columns
* Performance charts can be opened by clicking on the icon-option icon"

https://www.prorealcode.com/topic/prorealtime-version-10-3-complete-list-features/

Kalott Tahnk you for replying to me.

So, let me be clear. If I activate ProReal Trade, can I see ALL the available options, or just the one I usually see on IG platform (Indexes, Metals, Comodities)?
Im looking at a way to spreadbet on share's options online, without the need to call IG

 

[EnlightenedJoe]

No Tax on the trade. Same reason why I spreadbet rather than Share dealing

There's also no tax offset when you lose. This is the most likely outcome. So it's a false economy.

 

[Doc_P80]

Hi Doc
You said you just recently started trading options. You also mentioned the Greeks.
Firstly you need to google 'Greeks formula'. This will show all u need to know on Delta, Theta etc..
Many people in America use Ib brokers. They cover options too. But I think they demand minimum $10k to open account ( not sure)

Can you also answer the following questions:-

1. Do you wish to use options for hedging other positions/ commodities? Or for both hedging and for profits?
2. Do you wish to use options positions contracts for short term or long term? Ie a few days weeks or months.
3. There are many strategies in options. What strategy do you have in mind and why?
4. If you are not sure which strategy to use . Are you thinking of using just ONE leg or several legs in ONE position?

I will put up a link on Greeks for you later.

Larry

Larry thank you for taking the time to reply to me.
I am pretty familiar with options already (thanks for the links btw).
1. Manly for profits, sometimes for hedging
2. Mainly short term, sometimes long term
3. Strategy depends on market conditions, underlying, etc etc. I do not have a single one. And clearly not all are winning

Reason why I was asking about the greeks is that it is hard to pick up the right option to buy (or mainly to sell, which is what I do), without having those numbers.
IG doesnt show those on the Index options I am trading, so I was wondering whether there is an other spreadbetting broker that offers that.
Also I am interested in trading online options on US shares, which IG offers only over the phone (extremely unpractical)

S.

 

[Doc_P80]

There's also no tax offset when you lose. This is the most likely outcome. So it's a false economy.

True and not true at the same time.
My account is +, so that means I have saved money so far.
I trade quite a lot, so it is also convenient to avoid fixed costs.

But when I started, I did not want to "fill" tax returns and/or let my employer know about this little side activity of mine. Still is a good reason to keep playing on a SB account only.

 

[tomorton]

No Tax on the trade. Same reason why I spreadbet rather than Share dealing

Indeed, there is no CGT or Stamp Duty to pay on any SB. But that's a reason to use SB, not a reason to use SB to trade options. am I missing something?

 

[mpups]

Indeed, there is no CGT or Stamp Duty to pay on any SB. But that's a reason to use SB, not a reason to use SB to trade options. am I missing something?

ok look at it the other way round...

Say i have an IG SB account which i use to do my usual directional trades and I discover one day that there are options on the platform too.

I see I can buy a FTSE 7300 at the money Call (a few days ago) and i want to do that....Why would i do this elsewhere?

 

[EnlightenedJoe]

SB price don't necessarily correlate with the underlying price. The difference is elastic. If you don't mind this elasticity, SB can be convenient. SB is not necessarily tax-free. When large amounts are won, there's going to be problems. But since most people lose, this is a non-issue usually.

I had to submit my NI number only earlier. So the tax man is interested in people's wins.

 

[mpups]

SB price don't necessarily correlate with the underlying price. The difference is elastic. If you don't mind this elasticity, SB can be convenient.

yes that would be a valid reason, i have not investigated the difference as yet.
Assuming premiums are not an issue I was just tying to illustrate to Tom.

I had to submit my NI number only earlier. So the tax man is interested in people's wins.

happy days :cheesy: are you serious? for what kind of account?

 

[EnlightenedJoe]

I have a loser account worth less than £100 loss. If the market crashes I might get a £100 profit. But IG wants my NI anyway. I didn't read. Most likely they would claim it as identity check. But more than likely is designed to track large winners.

 

[tomorton]

ok look at it the other way round...

Say i have an IG SB account which i use to do my usual directional trades and I discover one day that there are options on the platform too.

I see I can buy a FTSE 7300 at the money Call (a few days ago) and i want to do that....Why would i do this elsewhere?

But the other way round is just the same. Why SB the option on the index when you could just SB the index?

 

[mpups]

But the other way round is just the same. Why SB the option on the index when you could just SB the index?

so the question is basically "why should i trade options?" i didn't know this is what you meant.