Why Trade Options?

Options have the ability to design almost any payoff, which gives traders the ability to tailor a strategy around their view on a stock. Often this results in the trader taking less risk, exposing less of their capital, and creating a higher potential return. Once traders discover the potential available through Options, it’s usually very rare to go back to CFD or share trading.

To discover more advantages of options trading, visit the Options Education Page and watch some of our Online tutorials. Or to participate in some of our online education courses, subscribe as a member of the Minc Trading website

Why Trade Options in an Equity Portfolio

We believe every portfolio should take advantage of the power options can provide. Many investors see Options as an aggressive form of leverage and a high risk strategy. In actual fact, options can significantly reduce the risk and enhance the returns of any portfolio.

Fund managers generally utilise options to:

• Generate extra returns
• Reduce risk
• Reduce transaction costs
• Reduce the cost of purchasing stock

Options Trading Platform

Our Options trading platform is one of the most sophisticated in the market, with a range of tools available, and unlimited day trading for the price of one trade, its never been easier to advance your trading to the next level. Some important features include:

• Simple and easy to use Options Monitoring
• The ability to create Payoff Diagrams
• Options valuation tools
• Portfolio management tools
• Expert graphing tools
• SMS and Email Alerts to for Stop loss/gains

For more information on our trading platform visit the Online Platform page.

Minc Trading's ASX Options Trading Portfolio has been an incredible out performer and generated significant returns in such a short period of time. (inception: August 2009)

If you are interested in following the returns of the ASX Options Trading portfolio, we offer a free one month trial prior to requiring an account. Register now to receive this service.

Options Recommendation Program

Minc Trading offers two services for options traders, which are classified as either speculative or conservative. Both have achieved spectacular returns for our clients. In this service, clients receive recommendations via SMS, Email and Phone. This is a great way to start out in the Options world, and with a team of advisors and analysts monitoring your account, traders can be confident, their portfolio is working hard.

The ASX Options Trading Portfolio is an exciting recommendation service for the aggressive trader. We are looking for aggressive model portfolio growth and generally take positions with extreme leverage, however, with limited losses. To increase potential returns we implement a strict risk management system using stop losses and trailing stops on positions. We also monitor positions daily and send out regular updates if the situation changes.

We believe every portfolio should take advantage of the power options can provide. Many investors see options as an aggressive form of leverage and a high risk strategy. In actual fact, options can significantly reduce the risk and enhance the returns of any portfolio.

Fund managers generally utilise options to:

• Generate extra returns
• Reduce risk
• Reduce transaction costs
• Reduce the cost of purchasing stock

ASX Options Investment Portfolio

The Options Investment portfolio utilises basic options strategies like selling calls and buying puts to maximise returns from a portfolio.

Why use options in an equity portfolio?

We believe every portfolio should take advantage of the power options can provide. Many investors see options as an aggressive form of leverage and a high risk strategy. In actual fact, options can significantly reduce the risk and enhance the returns of any portfolio.

Fund managers generally utilise options to:

• Generate extra returns
• Reduce risk
• Reduce transaction costs
• Reduce the cost of purchasing stock

 

 
The ASX recommends the Buy Write strategy and made the following commends at www.asx.com.au

“The Buy Write is the most basic and widely used options investment strategy, combining the flexibility of listed options with share ownership.”

“Writing Options against shares you already own or plan to purchase can be one of the simplest and most rewarding (trading) strategies.”

“The Buy Write is widely regarded as a conservative strategy because it decreases the risk of share ownership.”

For the ASX fact sheet on the buy write strategy visit www.asx.com.au/produts/pdf/buy_write.pdf

Capital Requirement: Minimum $15,000.00

Strategy Risk Profile: Low - Medium

Time Horizon: Minimum 6 Months

Options can be used as an extremely conservative investment tool, in many cases, Options involve less risk than share trading. This is because of their ability to be used as protection or "insurance" and also the ability to sell calls for a premium, effectively capping returns on trades for a fixed return.

The conservative portfolio utilises a range of strategies for its investments as below however predominantly the strategy revolves around, the protected buy and write / covered call strategy.

Options Strategies

• Protected Stock
• Buy and Write/Covered Calls
• Naked Puts
• Long Stock
• Collars

Trading Plan

Step One: Sell puts for approximately 6 weeks.
Step Two: Buy protective insurance for 6-12 months.
Step Three: Wait for Options expiry and either re-sell puts or allow to be exercised and purchase stock.
Step Four: Sell Calls over stock to receive a monthly premium.
Step Five: Allow Calls to be exercised and lock in a premium and capital gain.

This strategy is generally a longer term strategy over 6-12 months and because we have protective puts in place, stop losses are not required. We do however roll protection down, or lock in profits on protection from time to time, depending on opportunities.