covered option writing

This is a discussion on covered option writing within the First Steps forums, part of the Reception category; All, By and large I swing trade and and after settling on a stock picking strategy am interested in (amongst ...

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Old Aug 20, 2005, 12:04pm   #1
 
fundjunkie's Avatar
Joined Feb 2004
Question covered option writing

All,
By and large I swing trade and and after settling on a stock picking strategy am interested in (amongst other things) using out of the money covered option writes to leverage my gains and cushion my losses. Because I'm not a particluarly experienced trader I'm not sure what brokers will allow me to write options against any of the stocks I hold. Will any broker allow me to do this if I own the corresponding stock in the right quantities?

I am currently with comdirect and have been considering a move to another broker to have the option of using margin (with careful money management). The current frontrunner is deal4free with their CFD/spreadbetting accounts. Of course, these are not options accounts so I expect I won't be able to make covered writes (or some equivalent) if i go that way.

ideally, i'd like the option of doing all of this - buy stocks, buy spreads or CFDs on margin, cover my stock holidngs with option writes. My priority is to find a broker who'll allow me to write options. However, a broker who'll allow me to do more will be most useful


Thanks in advance,
Dave
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Old Aug 20, 2005, 8:22pm   #2
 
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Joined Jan 2004
suggest you look at :

http://www.interactivebrokers.com

GL

rog1111

Quote:
Originally Posted by fundjunkie
All,
By and large I swing trade and and after settling on a stock picking strategy am interested in (amongst other things) using out of the money covered option writes to leverage my gains and cushion my losses. Because I'm not a particluarly experienced trader I'm not sure what brokers will allow me to write options against any of the stocks I hold. Will any broker allow me to do this if I own the corresponding stock in the right quantities?

I am currently with comdirect and have been considering a move to another broker to have the option of using margin (with careful money management). The current frontrunner is deal4free with their CFD/spreadbetting accounts. Of course, these are not options accounts so I expect I won't be able to make covered writes (or some equivalent) if i go that way.

ideally, i'd like the option of doing all of this - buy stocks, buy spreads or CFDs on margin, cover my stock holidngs with option writes. My priority is to find a broker who'll allow me to write options. However, a broker who'll allow me to do more will be most useful


Thanks in advance,
Dave
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