Spreadbetting Options

EnlightenedJoe

Experienced member
1,950 98
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

Experienced member
1,024 139
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?
 
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EnlightenedJoe

Experienced member
1,950 98
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

Legendary member
8,317 1,308
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

Experienced member
1,024 139
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.
 

tomorton

Legendary member
8,317 1,308
so the question is basically "why should i trade options?" i didn't know this is what you meant.


Well its not what the OP meant, he wished to place spread-bets on the options on US shares. I thought you meant a valid approach would be to place spread-bets on an option on an index. I don't understand why anyone would do that but maybe there's a specific strategy that makes it a good idea?
 

mpups

Experienced member
1,024 139
Well its not what the OP meant, he wished to place spread-bets on the options on US shares. I thought you meant a valid approach would be to place spread-bets on an option on an index. I don't understand why anyone would do that but maybe there's a specific strategy that makes it a good idea?

oh i see no it was just an example of an option that's available on IG, not related to a US share options. As the OP said he cant find them on IG cos they have a limited range but i cant help him there, i dont know if any SB firm currently offers them
 

Doc_P80

Newbie
8 1
Happy to see people read my questions :)
Sorry for my late reply, I was dealing with a lot of stuff, including a 80% total account value loss with Bitcoin (Just an advice, stay away from it. Or at least do the opposite of what I do).

Regarding why Options on Index vs SB the index itsels, it is clearly subjective, but a combination of Selling an option in the money, Buying the opposite out of the money, and SB the index is the one that during reversal gets me the best reward with the lowest margin.

Iam in the process of getting an IB option account, as SB on shares is usually not extremely convienent to me, big spreads, low leverage, etc etc.

And yes, they have asked me the NI as well, so I don't think is related on big wins or not, it is more to confirm your being a UK resident (I think). They have also asked me for Passport details.

My understanding is that, provided that you have a job/additional income, it cannot qualify as your main occupation and therefore cannot be taxed.

PS: Anyone of you guys on IG and using the iOS app last version on an iPhone 6? In that case do me a favour, try to open the chart of any option (let's say SP500 weekly 2500 call), does it visualise ok or does it get stack at the loading page?
 
 
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