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Buy writes on instalment warrants

  1. crashy

    1,741 Posts.

    Good news for buy-writes

    Article in AFR today saying that OCH will now accept instalment warrants as script.
    This means instead of buying 1000 NAB shares for $35,000 and writing options worth $500, you can now buy 1000 NABIMB for $5,000 and write the same options.
    ie return was ~ 1.43% but now can be ~ 10%. (assuming nab stays fairly still)

    Should inspire a lot more people to get into options, thereby reducing the absurb spreads we currently pay.

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