Index Options

Index Options gives exposure to all the stocks in an Equity Index without having to own all the stocks in the Index.

By using clever combinations of Call and Put Options over an Equity Index, one can gain exposure to the broad stock market to benefit from all market conditions.

An Index Option contract allows exposure to the entire market segment through a single, globally traded, high liquidity contract.

Index Option contracts are also used by Fund Managers to hedge the systemic or market risk of a diversified share portfolio comprising the Equity Index constituents.

There is no direct exposure to the individual stocks making up the Equity Index.

OPTIONS INSIGHT

Options are the most versatile trading instrument and the most powerful wealth creation tool ever invented in the financial markets.

Options can offer the commercial and financial trader a medium of reducing risk and/or increasing returns, often with a great deal more flexibility than other trading instruments such as Shares, Futures and Bonds.

In addition, Options can be used to create finely tailored hedging positions covering every market scenario.

They do so by giving the Options user a form of price insurance whilst also allowing the user to profit from favourable market movements.

OPTIONS TRADING ADVANTAGE

Effective Risk Management:

Options allow one to manage market risk by effectively, quantifying and neutralising, potential market risks under all conditions.

Abundant Leverage:

Options provide the potential to make a higher return from a smaller initial capital outlay than direct exposure to the underlying security.

A relatively small market movement can have a proportionately larger impact on the value of the Option contract, giving superior absolute returns compared to direct exposure to the underlying security.

Portfolio Diversification:

Options can allow one to build a diversified portfolio with a lower initial capital outlay than purchasing the underlying security.

Income Generation:

Options provide consistent income through continual premium reception.

Multi-Strategic:

By combining different options, one can create a wide range of strategies to continuously generate income and long-term capital growth.