ASX webinar series:

Our April seminar series have now passed. We look forward to hosting further seminars in August/September 2015 in major capital cities.

In the meantime, we invite you to review our webinar series to discover how options can be investment heroes in disguise.

Register for webinar Options - investment heroes in disguise

Registrations have now closed. If you wish to be invited to future events please register your interest:

About the webinars

Options might sound complicated but they don’t have to be, as long as you know how to use them. At the webinars, Graham O'Brien – Manager, Equity Derivatives at ASX will explain how options can provide a level of certainty for investors, regardless of how the market performs.

  • Options. Investment heroes

    In the first webinar of our series, Graham will demonstrate how different options strategies can be used to mitigate risk in a falling market, enhance profit in a rising market or generate income in a flat market
    Sign up for Options. Investment heroes webinar
  • Options. Meet some more heroes

    We invite you to review two economic outlooks from Craig James of CommSec and Michael McCarthy from CMC Markets as they provide an overview of current market conditions. Our options experts will then identify which strategies could best suit the economists' views. Build on the knowledge you gained at our previous seminars and learn more about how options can work for you. We recommend reviewing this webinar only if you have attended the Options. Investment heroes seminar or webinar.
    Sign up for Options. Meet some more heroes webinar

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Graham is the Manager of Equities Derivatives at ASX. He started on the options trading floor as a board broker in 1995 and then worked on both institutional and retail desks until 2001. Today, one of Graham’s key responsibilities is educating investors and advisers on a range of ASX products, including options.


“Graham was a fantastic speaker. He was able to explain a complicated topic, while still remaining engaging.”
Source: ASX Options seminar feedback, November 2014.
“Thank you for holding this type of event.”
Source: ASX Options seminar feedback: November 2014.



Mitigate risk in a falling market


Enhance profit in a rising market


Generate income in a flat market

As options are classed as either call or put options, you can generate wealth from rising and falling markets. You could take a call option to profit from a rising market – locking in a buy price now and benefiting from the underlying security’s capital growth over time. On the other hand, you would take a put option to benefit from a falling market, by locking in a high sale price before values fall.

Taking options is a relatively low-risk trading strategy. If the underlying securities do not behave as you expect, you can simply allow the option to expire. The most you can lose is the initial premium you paid for the option.

Some investors use options to defer the decision to buy or sell shares, a strategy that allows you to see how the shares behave before making a commitment either way. Again, if you decide not to exercise the option, the most you can lose is the initial premium – normally only a fraction of the total share price.

Writing options against shares you already own can provide additional income. You will generate income upfront from the premium, however, you will be obliged to deliver the shares at the agreed price if the option is exercised.

Options can be used to offset potential falls in share prices by taking put options giving you the right to sell your shares at a pre-set price for the life of the option, no matter how low the share price may drop.

Writing options can be considerably riskier than taking options as even though your premium is fixed there is the potential to incur losses greater than that amount. For example, if the market moves against your position, your losses can escalate quickly. Writing call options if you don’t own the underlying securities is particularly risky, as you will have to provide the underlying securities if you are exercised against.

Options have an expiry date, and as such decrease in value over time. The rate at which options decrease in value accelerates the closer you get to the expiry date. Additionally, market factors such as interest rates and market volatility can affect the value of an option.

If you are writing options, ASX may require you to provide extra security to ensure that you can meet your obligations if your options are exercised. This will require you to pay additional funds to maintain your position. If you cannot do this, your broker may close out your position and you will be liable for any resulting losses.

Options trading strategies can be complex especially if you need to take offsetting positions. Doing this can be a risk, in itself, if you do not fully understand this strategy. Before trading options you should ensure you fully understand options and their risks, and consult your broker.

Contact a broker to learn more about options