What is the CommSec Options Stress Test?
CommSec conducts stress tests on all Options portfolios to assess the impact of changes in market conditions on your portfolio.
What happens in an Options Stress Test?
We apply simulations to your Options positions and the rest of your CommSec portfolio, then assess how it would perform if those market conditions eventuated.
Where we identify that your CommSec portfolio is unable to support the performance of your options portfolio in the simulated market events, you will incur a ‘Stress Test Obligation’.
A Stress Test Obligation is where you are required to take action to restore your CommSec portfolio to a level where it can support your Options portfolio in the simulated event(s).
If you incur Stress Test Obligations, we will notify you, and you will be required to complete the following in the time stipulated by CommSec (usually by 2pm on the trading day following the notification):
- Transfer a specified amount (or more) of additional securities or cash collateral into your CommSec Share Trading Account or linked CBA Bank account, and/or;
- Reduce your Options portfolio exposure by entering into offsetting positions or closing out open positions (Note: such transactions will incur additional brokerage and fees)
Please note: Stress Test Obligations are separate from Margin Obligations. Similarly to Margin Obligations, when you write Options that require non-specific or cash cover, Stress Test Obligations may occur.
