Short-Dated Index Options
More flexibility to manage short-term market opportunities and risk with daily expiry options.
Short-Dated Index Options
More flexibility to manage short-term market opportunities and risk with daily expiry options.
Short-Dated Index Options are exchange traded options on the S&P/ASX 200 Index that expire every business day, allowing investors to take short-term market positions without owning the underlying shares.
| Express a short-term market view | Lower premium | Reduce overnight exposure | Flexible risk management |
|---|---|---|---|
| Take a bullish or bearish view around economic data releases, RBA announcements, company earnings and global market events. | Because expiry is much shorter, premiums may be lower than longer-dated options. | Daily settlement means investors can avoid holding positions overnight if they choose. | Use options to help manage portfolio exposure around expected market events. |
Good for investors who:
✔ Have a short-term market view
✔ Understand options
✔ Want defined upfront premium
✔ Are comfortable with higher risk
May not suit investors who:
✖ Are new to investing
✖ Don’t understand options
✖ Want long-term investing
✖ Are not comfortable with higher risk
| Time decay accelerates | Market moves quickly | Brokerage Costs | Premium can be lost | Not suitable for everyone |
|---|---|---|---|---|
| Option values can decline rapidly as expiry approaches. | Short-dated options are highly sensitive to market movements. | Where an option premium is relatively low, brokerage costs may represent a larger proportion of the overall trade. | If your market view is incorrect you may lose the premium paid. | Ensure you understand the risks before investing. |
Trading Short-Dated Index Options is similar to trading other ASX-listed options.
Cash settled: As these are index options, there is no delivery of shares at expiry. Positions are cash settled based on the S&P/ASX 200 Index settlement value.
Short-Dated Index Options can be traded through brokers that offer ASX-listed options. Contact your broker to confirm whether this product is available on their platform.