This is my first ever post on this website.I must say I have learnt alot from this website. I’d like to thank all members for such valuable input to the website and also the aussiestockforum team for such outstanding service.
My question is:
Can I Buy a put option to avoid a Margin Call using a commsec margin loan account?
To further explain myself please see my example below:
I buy $20,000 worth TLS shares using my own cash. Lets say total add up to 100 shares
I buy $10,000 worth TLS shares using my margin loan account. Say 50 shares.
I also buy a put option that expires in a years time and is ATM. There will be enough contracts to cover the 150 shares.
How exactly do i buy the put so a possible margin call is avoided?
my concern is.. if i already have a put and the market crashes..i wont have enough time to sell my put and get out of the margin call. commsec will just sell my shares at a market price and recover their costs.
I rang commsec and the guy on the phone wasnt being clear and was trying to fob me off.
Do you guys know of a brokerage account that will let me do all of the above? Any website/books you would recommend that will help me in the above.
Any help would greatly be appreciated,