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BetaShares BBOZ and BEAR ETFs, page-87

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Prodigalson7

1,435 Posts.

179

07/04/19

14:03

Post #: 38031389
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Originally posted by Anton Chigurh: ↑

ASX exchange traded options are rubbish and your mate is right. Open up an Interactive Brokers or other US broker account (takes no longer than opening an Aussie acct or less, in my experience). This will give you access to a whole range of highly liquid instruments, to both trade and hedge with.

If you want protection against systemic market risk, buying Puts over the $SPY ETF, which tracks the S&P500, is far and away the best bang for your buck.

The leverage you get from out of the money options, with maximum loss being your initial outlay) make put options so much more attractive than CFDs or ETF like bboz.

Anyone who does the numbers would see this very clearly, so I can only guess those who shy away are doing so cause they are unfamiliar/unsure about using a US broker account and/or using options. Larger US brokers generally have insurance for any single account of around $500k+ which is far more than you'll ever need for hedging purposes. As for using Options, single leg LONG only options are very uncomplicated and there's a lot of learning material, freely available on the net.

Get across the basics of Options and you'll have so much more firepower at your disposal and likely not look back.

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Brilliant answer and very helpful and probably saved me money. Thank you.
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