Options trading

Options trading is a form of derivative trading that allows you to speculate on the Australian securities market.

Apply now to start trading options with CMC Markets

What are options?

Similar to warrants, options are contracts that give the buyer the right, but not the obligation, to buy or sell underlying securities at a predetermined price, at or before a specific date. Exchange Traded Options (ETOs) give active investors the ability to protect, grow or implement further diversification in their investment portfolios. Equity options and index options are the most common asset types traded. 

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Learn about the investment powers of Options

Discover Options trading, Weekly Options and Options trading strategies at The Power of Options Introductory and Advanced education seminars, brought to you by ASX.

  • Perth, 15 November 2016
  • Sydney, 17 November 2016
  • Melbourne, 21 November 2016
  • Adelaide, 24 November 2016
  • Brisbane, 29 November 2016
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With strategies that have the potential to protect, grow or diversify your portfolio, Options could be the investment heroes you’re looking for.

How options trading works

With a number of strategies and jargon terms surrounding them, options can at first appear complex, but all options strategies are actually based on the same principle. Options allow you to lock in a future buy or sell price for an underlying security. The set price you agree on won’t change and it’s this fixed element that smart investors rely on.

A call option provides the owner with the right to buy at a specific price. Alternatively, a put option provides the owner with the right to sell at a specific price. Options can be traded over the phone with our dealing team or on the webIRESS platform. View more information on options accounts and forms.

Why trade options?

  • Earn income from your share portfolio – You can write options against shares you already own to earn additional income. While this will generate income upfront from the premium, you’ll be obliged to deliver the shares at the agreed price if the option is exercised.
  • Generate wealth in rising and falling markets – You can profit from a call option in a rising market by locking in a buy price now and benefiting from the underlying security’s capital growth over time. Or you can benefit from a put option in a falling market by locking in a high sale price before the security’s value falls.
  • Hedge against share price falls – A put option gives you the right to sell your shares at a pre-set price for the life of the option, no matter how low the share price may drop.

What’s the difference between our standard and pro platforms?

Funding your options trading

You can fund your options trading using cash in a CMC Markets Cash Account, or a margin loan from selected margin lending providers, such as Leveraged. With a margin loan you can leverage your portfolio to increase your investment opportunities.

Switch to CMC Markets Stockbroking

Change your online broker to CMC Markets Stockbroking for: 

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  • Award-winning proprietary trading platforms* with mobile solutions
  • Powerful trading and analysis tools and advanced charting packages
  • Robust risk management functions including free unlimited conditional orders
  • A Frequent Trader Program that rewards high-volume traders

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​*CMC Markets Stockbroking ranked first in categories such as active trader platform and charting, by own client satisfaction in the Investment Trends 2016 First Half Online Broking Report, based on a survey of over 15,000 investors/traders. CANSTAR Online Share Trading Best Value Australia 2011 - 2016. CANSTAR Online Share Trading Outstanding Value Australia, casual investor 2011 - 2016. CANSTAR Online Share Trading Outstanding Value Australia, active investor 2013.

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