Option trading?

Theyā€™ve already said itā€™s not gonna happen. Itā€™s an American thing as they donā€™t have CFDs and they are more riskier.

Does anybody know whether it is it possible to buy or sell options on stocks or index ETF within the Invest account? (so not CFD)

I have tried searching on the forum and in the help section but have not found anything.

Does anyone know?

Thanks,
JB

Not possible. Twenty characters.

The app has CFD but American counterparts Robinhood offer Options, is this something 212 will consider?

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They have said it is being considered for 2021 I believe.

I agree options would be great, hate using CFDs myself but end of the day they are both just leveraged instruments - CFDs are banned in the US hence why an offering of options is the norm over there.

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Id just feel a lot more comfortable with options (opposed you CFD) as risk is limited to my chosen outlay, Iā€™d use any profits to then fill my isa ideally :grimacing:

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Definitely agree. Trading with CFDs is incredibly boring too, far more exciting to come up with complex option strategies to lose all your money instead!

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Gosh CFDā€™s really get a bad reputation due to people not managing their account/risk correctly.

I understand it would make T212 more attractive to some by having the ability to Trade Options, however pleased to read itā€™s not going to happen soon, as T212 need to focus on making the platforms they have more competitive and function better.

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Thatā€™s why it might be a good idea to look into single stock ETPs by Leverage Shares.

They:

  1. Offer leveraged / inverse exposure
  2. Trade on a regulated exchange like LSE / Euronext (unlike CFDs)
  3. Do not require a margin account
  4. Cap losses to invested amount

:wink:

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Options are complex instruments, and with their complexity they can be used in risky ways (sells uncovered calls) or in secure ways for hedging your stock position with covered callsā€¦

Itā€™s not easy to use them in a plug and play interface like this without putting at risk unexperienced investors, but I donā€™t think are more dangerous than CFDs, are simply more complex, and need good understanding and preparation to handle them

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We just need more Leveraged share options then? :joy: itā€™s a bit limited currently

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The list will be expanded soon, no worries :wink:

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Whatā€™s the maximum leverage on these shares? I believe options provide 20x etc

Also are - 2 x essentially the same as a ā€˜putā€™?

For now the maximum amount is 3x.

The -1x products are essentially like going short on the stock. The ETPs seek to provide the opposite of what the underlying stock does (underlying drops 2%, the ETP rises 2%) - so yes.

Just to confirm - to the long side, there are leverage factors of 2x and 3x. To the short side: -1x.

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What are the fees for leveraged stocks? How many more will be added, do you know? Itā€™s frustrating not to have a good options platformā€¦perhaps this could be an alternative.

I guarantee if we had options and WallStreetBets had CFDs, people here would be begging for CFDs after watching Americans sell their house and YOLO their life savings into a Tesla CFD.

You know you can YOLO your life savings on CFD too right? And get lucky 1% of the time like the guys on WSB.

Yeah, some of the other benefits of these is that:

  • You donā€™t need a margin account (which you would for trading options)
  • Options expire, these donā€™t (at least for another ~40 years).

The fees include a management fee (0.75% annually) and margin fee. This comes out to about 0.0048% per day. The fees are reflected in the price of the ETPs.

There is a plan to roll out more soon - so stay tuned :slight_smile:

Hereā€™s some more info if youā€™re interested:
https://community.trading212.com/t/what-are-leverage-shares-etps/17991

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I am very suprised that someone here argues CFDs are much safer than options.

Options provide more safer strategies to reduce the cost of holding your stocks (like selling covered calls) for long term investments. Especially, when the market is going bearish, with option strategies you can still reduce the cost by earning the premium with least risk. But if you open your short options in CFDs, you are likely to lose all your money.

Sure, I mean option feature for US stocks will be very attractive. (Anyway, me, donā€™t care about LSE stocks at all)

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Having looked more into options lately, I wouldnā€™t mind having the option to trade options. With a strategically thought out plan, I believe I could enhance my long term holdings.

But Iā€™m not going to hold my breath on getting the option of options as I think many people will just lose money after not researching their strategy and the instruments they are interested in first, just like with CFDā€™s.

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Options would be a great differentiator for 212 as the only other providers are Tasty works or interactive brokers - neither of which have the UI or ease of use as 212 :eyes: @David