Covered calls - UK FTSE 100 shares
Covered calls - UK FTSE 100 shares
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Discussion

BluePurpleRed

Original Poster:

1,138 posts

242 months

Monday 27th June 2011
quotequote all
Hi, I have been looking round for a convenient and as cost effective way to get access to share options.

Let me clarify, I have looked at IG Markets, City Index and had a decent look at Google.

I want to trade Share Options for a covered call strategy. I own some Blue Chips like Imperial Tobacco, GSK, National Grid etc and some dogs like RBS and Lloyds. I am going for a buy and hold for this part of the portfolio. As such I would like to get some extra income by writing covered calls.

So for RBS for example. Price at the moment approx 35 - 36. I would like to take a premium from selling the call for a few p with a strike out at 55p for maturity of 6 - 9 months.

I know the danger of missing out on profit on a big jump but to be honest looking at the maths I have in my spreadsheet I don't mind if I 'only' make 14+% on inverstment ( in premium ) and then just look at another couple of blue chips. Some of the stocks I have I wouldn't mind out of them at some of the strikes I am looking at as I am too UK heavy at the moment too.

So, this is all good in theory... but where can I go to buy these options. I know I am small fry and will only be buying in lots of 1 or 2 ( 1000 shares per lot ) but it must be possible? I have had a look at LIFFE. Is this the only way?

Edited by BluePurpleRed on Sunday 3rd July 22:33

limpsfield

6,350 posts

269 months

Monday 27th June 2011
quotequote all
Surely you mean you are looking to SELL options as part of a covered call strategy?

marky1

1,094 posts

212 months

Monday 27th June 2011
quotequote all
limpsfield said:
Surely you mean you are looking to SELL options as part of a covered call strategy?
He said selling calls. (He also said buying but I think he is talking generically about where to go to trade options)

Edited by marky1 on Monday 27th June 20:49

BluePurpleRed

Original Poster:

1,138 posts

242 months

Sunday 3rd July 2011
quotequote all
limpsfield said:
Surely you mean you are looking to SELL options as part of a covered call strategy?
Yes, I mean trade rather than buy. But interestingly no one has any recommendations... must not be as popular as I thought

sideways sid

1,422 posts

231 months

Monday 4th July 2011
quotequote all
Strange place to seek advice on this subject, but I've been trading mainly covered calls for years using ODL Securities, who were recently taken over by FXCM. They've been fine as a telephone broker but their web platform and MyBroker software will not allow you to sell options. You can trade Execution Only (I do) or use one of their advisory or discretionary accounts.

If you're happy with US stocks instead and want to be completely online, you could try OptionsExpress.