On the ASX the number of stocks with a liquid options market is too small.
The premiums received is too low.
The commissions are too high.
When I looked a contract was 1,000 shares which was a lot of money at stake per trade. I read there were "mini options" now on offer but I haven't bothered to confirm this.
You give away your up side for a few pennies while being exposed to all the down side. It's been likened to picking up pennies in front of a bull dozer.
Selling cash covered puts has the same risks.
If you are interested read up on it A LOT first and then open an Interactive Brokers a/c and trade NY where there are thousands of cos with liquid options and a contract is 100 shares. Note: IB is NOT for beginners. They do not have a help phone line or email. Their platform runs on a Mac.
Interest on margin loans is lower in the US.
You will need a charting service and a screening program. Sandybeaches posts screening results, ask him about that.
Louise Bedford writes from an Australian viewpoint but there are dozens of on-line sites explaining how different strategies work. You will need to know this because IB will run you through a test before giving you trading privileges.
