What are options?

An Option is a contract between two parties giving the buyer the right, but not the obligation, to buy or sell a parcel of shares at a set price, on or before a predetermined date.

Why invest in options?

Investors choose to invest in options for a number of reasons, including:

  • Building a leveraged exposure to an underlying share
  • Protecting (hedging) the value of an existing share portfolio from falling prices

Options trading at CMC Markets Stockbroking

Options trading is a specialised area of investment. We have an experienced options dealing team who can help with all of your options trading needs. Our web site includes market information showing prices for all options linked to an underlying share.

Want to learn more about Options?

To learn more about Options, we suggest you read the ASX’s Understanding Options Trading guide.