re: writing an index call / put Seeing as nobody else has posted...

re: writing an index call / put Seeing as nobody else has posted anything, I'll tell you what I understand of the process. Essentially you write options in the opposite way as what you would when buying options, eg if you feel the price will rise you write a put and vice versa. You select the terms of the options such as strike price/strike date(there may be some ASX guidelines for values you can use but I'm not sure), and then collect a premium from buyers based on those variables. eg, the premium will be higher if they have a long date and are close to being in the money. If the option is never exercised you can keep the premium. You do not need to be holding the underlying equity to write an option(called naked options I believe).