Selling options on SB company

[osho67]

I would much appreciate for some input on following questions.

(1) Which brokers will allow to trade options on spreadbetting?

(2) The premium earned will be tax free?

All information much appreciated . Thanks

 

[JonnyT]

What premium?

You buy at a price and sell at a price and visa versa.

I don't think you can write options via an SB

JonnyT

 

[osho67]

Thanks Jonny

I understand IGindex would allow sell of options on indices. The spread seems is very wide .Can the premium earned be classified as spreadbetting transaction and free of taxes.?any comments appreciated. Thanks

 

[stevespray]

Yes - IG Index do options. All profits are tax free and work just like any other spreadbet. In simple terms all options are 'cash settled'. In other words, you open at one price and it either expires or you close it.

Steve.

 

[MarvinS]

steve you traded options with SB's you must realise the spreads are massive!
However typical spreads on the underlying are quite big too. The only gainers are the market makers because option spreads can be as much as 10%-20% market makers are guarenteed to get a better fill then you think, whether long or short. However in less vol markets short selling options tends to be typically well offered therefore shorting option in size can be more difficult. As a private options writer you can have your eyes ripped out. But sometime its worth the trouble to trade multiple option strategies.
Be aware IG option expire basis cash and not EDSP like the underlying///