The clearing house holds a suitable deposit or stock from seller of put and has guarantees in regards to ETO's as they are only written via brokers. Therefore it is not relevant if the company goes belly up it only matters what it's price is as it is the broker and clearinghouse guaranteeing you not the underlying company.
Beware warrants and CFD's (gambling) etc as they have some weird little clauses and are only backed by original writer Ie DBA or MAC etc or a shell co in the UK????.
Since ETO' s are only written generally on larger companies and you know one going down the tube please let me know.
- Forums
- ASX - General
- put options
put options, page-6
-
- There are more pages in this discussion • 2 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)