Spreadbetting Options

This is a discussion on Spreadbetting Options within the Spread Betting & CFDs forums, part of the Commercial category; Originally Posted by tomorton What would be the point of spread-betting on options on a share rather than spread-betting on ...

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Old Sep 11, 2017, 9:15am   #9
 
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Originally Posted by tomorton View Post
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
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Old Sep 11, 2017, 9:18am   #10
 
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Originally Posted by kalott View Post
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/pr...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
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Old Sep 11, 2017, 9:23am   #11
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Originally Posted by Doc_P80 View Post
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.
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Old Sep 11, 2017, 9:23am   #12
 
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Originally Posted by Larrystone View Post
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.
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Old Sep 11, 2017, 9:27am   #13
 
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Originally Posted by EnlightenedJoe View Post
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.
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Old Sep 11, 2017, 11:23am   #14
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Originally Posted by Doc_P80 View Post
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?
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Old Sep 12, 2017, 10:35pm   #15
 
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Originally Posted by tomorton View Post
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?
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Old Sep 12, 2017, 10:44pm   #16
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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.
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