New! Daily Australia 200 Options
Looking for another exciting way to trade the Australia 200 cash market?
In conjunction with our market-leading Australian 200 cash index CFDs, our new Daily Australia 200 Options allows you to exploit the recent volatility of the Australian market. Available from 10:15am AEST, and with a 200 point range of strikes, these options are designed to compliment your current trading strategies:
- Take advantage of the minor outlay to protect your market portfolio during volatile times
- Speculate on the direction and level of volatility in the market
- Buy a daily option with the security of limited risk and the advantage of unlimited gain
- Trade from as little as A$10 per lot
Our Daily Australia 200 Options settle daily against the official settlement of the S&P/ASX 200 Index spread free.
Example:
The US market falls sharply on Friday night and on Monday morning the Australian market opens 60 points lower at 5715. You think the move is over done but are worried that if it falls below 5700 it may fall further. You buy 5 lots of the Daily Australia 200 5740 calls at 8.3 for a maximum risk of $415 (5 lots x $10 per lot x 8.3). The local market shrugs off the troubles in the US and mining stocks rally over the day to close at 5784.8. The option settles at 44.8 (5784.8 – 5740) and you make a profit of 36.5 points (44.8 - 8.3) or $1825 (5 lots x $10 per lot x 36.5).
For more information visit our Contract Details on the website or speak to one of our dealers on 1800 601 733.
The above comments do not constitute investment advice and IG Markets accepts no responsibility for any use that may be made of them.
Updated: 2 June 2008