Trading Contract Options
With contract options you can hedge your portfolio and use market volatility or price movements to your advantage.
Trade different market views whichever way prices are moving. Saxo offers you the ability to trade options on futures and indices and hedge an equity or futures portfolio.
Trade options across categories such as interest rates, equity indexes, foreign exchange, energy, metals and agriculture.
Our trading platforms are fast, intuitive and uncomplicated. At Saxo options traders will find a powerful combination of technology and tools to empower them as an investor.
Use Stocks and Bonds as collateral
If you are a Stocks or Bonds trader, you already have assets that can be used as collateral toward your Contract Options trading. For example, use up to 75% of your Bonds value as collateral, subject to internal risk rating.
Beyond options, you can trade stocks, currencies, bonds and more from a single platform and one account, using options to hedge your investments or gain exposure in a larger context.
With Saxo, you gain access to some of the most liquid options globally. With Saxo’s broad market access, you needn’t miss out on any opportunity.
Calls, puts and straddles are all strategies which allow you to benefit from different market situations. You can use options to gain greater exposure, to protect your positions from certain risks or simply take advantage of a phase of market uncertainty and increased volatility.
Learn more about the basic options strategies, and what they can do for you below.
Bear Put Spread
This is a strategy that you could employ if you believed the price of the underlying asset would go down moderately. The strategy is executed by buying a higher in-the-money put Option and selling a lower out-of-the-money put Option.
Bull Call Spread
This strategy can be used when you believe the price of the underlying asset would go up moderately. It's executed by buying an at-the-money call Option while simultaneously writing a higher out-of-the-money call Option.
This is a neutral strategy in which you simultaneously buy a slightly out-of-the-money put and a slightly out-of-the-money call. It would be useful if you believed the underlying stock would experience a rise in volatility.
Expert insights and data
Get instant access to futures quotes, charts, news and market commentary from industry experts with the Futures Institute. Brought to you by CME Group, the world’s leading and most diverse marketplace.
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Whether you are new to options trading or are simply looking for a way to sharpen your trading skills, at the Saxo Academy you can find videos, modules, courses and quizzes that are right for you. And beyond that, our partnership with the Options Industry Council puts you at the source of the industry's greatest repository of practical and theoretical information.
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The special risks inherent to options trading may expose investors to potentially rapid and substantial losses, which means they are not suitable for all investors. Options trading privileges are subject to Saxo Capital Markets UK Ltd review and approval. Prior to buying or selling an option we advise that investors read a copy of the Options Clearing Corporation’s Characteristics & Risks of Standardized Options, also known as the options disclosure document (ODD), which explains the characteristics and risks of exchange- traded options.
Spreads, Straddles, and other multiple-leg option strategies can entail substantial transaction costs, including multiple commissions, which may impact any potential return. These are advanced option strategies and often involve greater, more complex risk than basic options trades.
Exercise and assignment of options, particularly American-style, may lead to substantial losses, especially if a writer of the option is “uncovered.” Options that expire in-the-money are subject to automatic exercise, while options that are out-of-the-money are expired. In some cases, holders of long OTM options may decide to exercise if very close to the daily settlement underlying price, e.g. “Pin Risk.”
Please note that Saxo Academy is property of Saxo Bank A/S. The materials published on Saxo Academy should not be considered as financial, investment, tax, trading or other advice, or recommendation to invest or disinvest in a particular manner. SCML assumes no liability for any losses resulting from trading in accordance with a perceived recommendation or reliance on Saxo Academy materials. Following or replicating other traders involves risk. Past performance of a trader is not indicative of future results.
Key Information Documents
All trading carries risk. To help you understanding the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more
Additional Key Information Documents are available in our trading platform.