Small upfront cost
Options allow you to pay for a fraction of a share, but you could still reap the benefits of share price changes, even without paying the full price of the share.
Invest with flexibility
Find opportunities whichever way the market moves - invest using Exchange Traded Options.
Small upfront cost
Diversify your portfolio
Invest a little, in a lot. Options allow for a more diversified portfolio than if you bought shares directly.
Protect against volatility
Protect your shares against market fluctuations using different Options strategies that lock in the shares' sale price for the life of the Option.
Flexible and versatile
Options are a flexible tool that you can use with a range of strategies in all market conditions. You can trade them over the time horizon that best suits your needs.1
The low-down on Exchange Traded Options
Here’s how it works:
- Link your Options account to your Australian Share Trading Account or Margin Lending Account to lodge shares as collateral.
- Provide cash margins from your linked CommBank account.
- Place your Options trades online or over the phone; all trades settle one business day after execution.
- Find the Options trading level that’s right for you depending on your strategy and risk tolerance. Learn more about Options trading levels.
Types of Options
There are two types of Options - Call Options and Put Options. Both can be bought, sold, or used in combinations to create strategies suited to your risk tolerance. Options positions should be considered from both the BUYER (or taker) and the SELLER (or writer).
Call Options
- Bought Call Options give the BUYER the right (not the obligation) to buy a specific number of securities, for a specific price, on or before a set date.
- Sold Call Options oblige the SELLER to sell stock if required (exercised) by the BUYER, at the agreed price and quantity until expiry of the option.
Put Options
- Bought Put Options give the BUYER the right (not the obligation) to sell a specific number of securities, for a specific price, on or before a set date.
- Sold Put Options oblige the SELLER to buy the stock if required (exercised) by the BUYER at the agreed price and quantity until expiry of the option.
Our rates and fees
Opening a CommSec account is free and there are no ongoing account-keeping fees.
|
Trade Execution |
Cost2 |
|
Exchange Traded Options traded online, up to $10,000 (inclusive) |
$34.95 |
|
Exchange Traded Options traded online, over $10,000 |
0.35% |
|
Exchange Traded Options traded over the phone, up to $10,000 (inclusive) |
$54.60 |
|
Exchange Traded Options traded over the phone, up to $10,000 |
0.54% |
|
Fees per contract |
Cost per contract3 |
|
Equity Option Contract (Open/Close) |
$0.13 (plus GST) |
|
Equity Option Contract (Exercise/Assignment) |
$0.05 (plus GST) |
|
Index Option Contract (Open/Close) |
$0.45 (plus GST) |
|
Index Option Contract (Exercise/Assignment) |
$0.35 (plus GST) |
Signing up is easy
Here’s what you need to get started.
✔ Your CommSec credentials and Australian Share Trading Account details
You’ll need your CommSec Client ID and password and an Australian Share Trading Account to open an Exchange Traded Options Account.
✔ Complete a Target Market Questionnaire
During your application, you’ll complete a Target Market Questionnaire (based on the Options Target Market Determination) to make sure an Exchange Traded Options Account is right for you.
✔ Select your Options trading level and complete a knowledge test
During your application, you’ll need to select your Options trading level and complete a knowledge test to make sure you understand how to trade Options, and the risks involved.4
Joining CommSec is free - sign up for instant access to our full range of trading tools, news and stock data.
If you're not a CommSec customer, you'll first need to apply for an Australian Share Trading Account.
Your questions, answered
Find the answers to your questions about investing with CommSec.
Trading Options comes with some risks. These risks include leverage (leading to losses larger than initial investment), potential for unlimited losses (for example, from trading naked sold positions, which involves selling an Option without owning the underlying security), market fluctuations, calls for additional margins, liquidity risk (the inability to sell an asset quickly), and time decay (the expiry date of an Option).
Leverage risk – options are often used as a form of leverage (using borrowed money to invest). While being able to buy more stock with less money can magnify returns, it can also magnify losses.
Potential for unlimited losses – this can happen in the case of naked calls, a high-risk options strategy where an investor sells a call option without owning the underlying stocks. A call option is a contract between a buyer and seller to exchange a stock/s at a set price at an agreed point in time.
If the time comes for this exchange to take place and the price of the underlying stock has moved above what was agreed, the seller must visit the open market to buy the stocks to give the buyer. Since there is no cap on how high the price of a stock could theoretically rise, the loss to the seller in this instance is potentially unlimited.
Market fluctuations – if the market moves unfavorably, options can fall in value or become worthless. This can happen very quickly and may mean you need to come up with additional funds at short notice.
Liquidity risk - Some options may lack liquidity, which means there is a lack of a market making it harder to close a position (buy or sell the option).
Time decay - Options have an expiry date and therefore a limited life. As an option gets closer to ‘expiry’ (a point in time previously agreed between the buyer and seller), they erode in value. This is because there becomes less time for the option to move in a favorable direction.
Through CommSec you can trade ASX listed Exchange Traded Options and Company Options. To trade ASX listed Exchange Traded Options you need a CommSec Exchange Traded Options Account. Company Options are traded like shares through a CommSec Australian Share Trading Account.
An Options assignment is the random allocation of an exercise obligation to an Options writer, for a sold call or put option. Learn more about what it means to exercise an Option.
Options trades can be placed on the CommSec website or over the phone by speaking to CommSec Options Support. Once you’ve opened your CommSec Exchange Traded Options Account, you can place a trade. To place a trade online, log into CommSec and head to Trading, then navigate to Options, then select Options order.
Help when it matters
Find the support you need, when you need it.
 |
Send us your question Fill in our online form and hear from one of our experts within two business days |
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Call CommSec Options Support 13 15 19 for calls within Australia |
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Reach out to us on X Tag @CommSec in your question on X |
1 Applicable to American-style Options. European-style Options can only be exercised on the expiry date.
2 Cost is based on trades placed online via the CommSec website, mobile app or other CommSec platforms. Cost is based on trades that settle in a CDIA. Trades linked to a settlement account from another financial institution and trades placed over the phone incur additional fees. See our rates and fees for more information. Brokerage charges (shares, warrants, listed managed investments and derivatives): Brokerage at these rates applies each time you trade a stock, warrant, listed managed investment or derivative. Alternative brokerage rates may be agreed from time to time and (if agreed to) will be payable under the General Conditions of Trade within the ETO PDS and Terms and Conditions. If you are offered, and agree to a tiered brokerage rate, this may result in brokerage charges that differ from rates expressly disclosed within the CommSec FSG. For ETO multi-leg orders, brokerage is charged on each individual Options leg. The execution of an equity leg (an Australian listed share transaction), traded as part of an Options multi-leg order will incur ‘Australian listed shares’ fees and charges as disclosed in the CommSec FSG.
3 ETO contract fees also apply. See the “Other fees and charges” section of the CommSec FSG. ETO Contract fees have been set out on a GST exclusive basis as the total GST may be rounded in accordance with the GST law.
4 Trading Exchange Traded Options (ETOs) can involve considerable risk. For that reason, you should only trade ETOs if you understand the nature of the product (especially your rights and obligations) and the extent of the risks you are exposed to.
Unless otherwise indicated, where a fee or charge is expressed as a percentage, it refers to a percentage of the transaction value. For GST rounding reasons, the final brokerage fee may result in a slight variance from the state or expected charge, which may exceed two cents for large trades.
The target market for this product can be found within the product’s Target Market Determination, available here.
A Product Disclosure Statement for Exchange Traded Options (Options) issued by Commonwealth Securities Limited ABN 60 067 254 399 AFSL 238814 is available from www.commsec.com.au. There can be high levels of risk associated with trading in Options; only investors familiar with the risks of Options trading should consider these products.
You can view the Exchange Traded Options Product Disclosure Statement and Terms and Conditions, CommSec Best Execution Statement and CommSec Financial Services Guide, and should consider them before making any decision about these products and services. There can be high levels of risk associated with trading in Options; only investors familiar with the risks of Options trading should consider these products.