CommSec Index Option Prices? - Aussie Stock Forums

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  1. #1

    Default CommSec Index Option Prices?

    Iím trying to understand the S&P/ASX 200 CFD/ETO Long Protection Strategy.

    Say I buy 10 S&P/ASX 200 CFDs (ie IQs) @ 4,381.6
    1 S&P/ASX 200 CFD has a value of A$1 per point so the total contract value is $43,816
    The initial margin is 10 x $305 = $3,050

    The equivalent S&P/ASX 200 ETO has a value of A$10 per point.
    Therefore a 10 long ASX S&P/ASX 200 CFD position would require 1 S&P/ASX 200 ETO put option for protection.

    I decide to buy 1 XJOXI Sep09 4300 put option.
    According to the CommSec website, the premium for the XJOXI is ď1.050Ē (not 1,050) and the Contract Size is ď10Ē, so does that mean the put option only costs me $10.50? Somehow I donít think so!

    Can someone please explain how to calculate the cost of a XJOXI using CommSecís figures or is there an error somewhere?

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  2. #2

    Default Re: CommSec Index Option Prices?

    Found the answer. Apparently the figure has to be multiplied by 1,000, same as for shares, even though the contract size is only 10. Nowhere on their website does it explain that, we're expected to figure that out for ourselves. Nice one CommSec!

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