How can I write covered calls or sell naked calls and puts using an Exchange Traded Options (ETO) account?
Your Options account level determines which types of strategies you can use. With higher account levels, you will be able to use a wider variety of investment strategies, including covered Calls, protected Puts, naked Calls and Puts, and strategies involving multiple Options and Options Series.
Below is a summary of Options trading levels and transactions permitted:
- Level 1: Buy Calls and Puts to open + Sell Calls and Puts to close
- Level 2: Level 1 + Sell Specific Covered Calls
- Level 3: Level 2 + Sell Uncovered Options (Calls)
- Level 4: Level 3 + Sell Uncovered Options (Puts)
As you become more experienced, you can request to upgrade your Options account level.
Before submitting a request to change your Options trading level, you should read the Options trading account level, investment objectives and risks guide to understand the characteristics of each account level, likely investment objectives and potential financial risks. You should also carefully consider your relevant circumstances including your experience, investment objectives, financial resources, and risk appetite.
To upgrade the level of your Options level:
- Download and complete the 'Trade Level Change Form'. This form can be located online by navigating Help > Forms & Brochures > Derivatives
- Return the completed forms to us via either of the below:
Email: CommsecDerivatives@cba.com.au
Post: CommSec - Locked Bag 22, AUSTRALIA SQUARE NSW 1215
If you are not sure what level your account is or if you require more information, please call the CommSec Options Desk on 1800 245 698 (8am to 5:30pm, Monday to Friday, Sydney time).
Important information
You can view the Exchange Traded Options Product Disclosure and Terms and Conditions, Best Execution Statement and Financial Services Guide, and should consider them before making any decision about these products and services.
There can be high levels of risk associated with trading in Options; only investors familiar with the risks of Options trading should consider these products.
