Trading Contract Options
With contract options, you can hedge your portfolio, and generate profit on price movements or volatility.
Market directionality ceases to be a concern as you can trade different market views, whichever way prices are moving. Saxo Capital Markets offers you the ability to trade options on futures and indices and hedge an equity or futures portfolio.
While you can trade options on futures with interest rates, equity indexes, foreign exchange, energy, metals and agriculture, we do not compromise on the importance of offer liquid contracts.
Our trading platforms are a fast, intuitive and simple. At Saxo Capital Markets, option traders will find an unparalleled combination of technology and tools to empower you 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 95% of your Bonds value as collateral.
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. And you have a wealth of in-house and third-party expertise and information at your fingertips.
Calls, puts and straddles all 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 would 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 is ideal if you believed that 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 would simultaneously buy a slightly out-of-the-money put and a slightly out-of-the-money call. It would be used if you believed that the underlying stock would experience a rise in volatility term.
Expert insights and information
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 OIC puts you at the source of the industry's greatest repository of practical and theoretical information.
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Listed Options Risk Warning
An option is categorised as a red product as it is considered an investment product with a high complexity and a high risk.
Danish banks are required to categorise investment products offered to retail clients depending on the product’s complexity and risk as: green, yellow or red. For further information click here
Options involve risks and are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses. Options trading privileges are subject to Saxo Bank A/S review and approval. Prior to buying or selling an option, investors must read a copy of the Characteristics & Risks of Standardized Options, also known as the options disclosure document (ODD). It explains the characteristics and risks of exchange- traded options.
Other Risks: 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 risk, and 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."