Share Options

We offer Share Options on a large selection of UK and US shares

Competitive spreads

Our bid/offer spreads on options are normally comparable with the cost of dealing in options on the underlying market, and may sometimes be tighter.

Wide range

Example: Buying a Call Option

When buying an option your risk is limited to the option's premium, but there is still the potential for healthy profits.

Opening the position

It is April and HSBC shares are trading in the market at 870/872p. You believe the price will rise and ask us for a quote on an HSBC June 900 Call on 5000 shares. We quote you 28/33p. There is no commission to pay on our Share Options; the only charge is our dealing spread.

You buy the Call at 33p per share, the offer price. This means that if the share price is above 933p on the expiry in June you will make a profit. Your maximum loss on the contract is 33p per share, or 1650.

Closing the position

HSBC does rise, and two weeks later the share is trading in the market at 938/940p. Our quote for the June 900 Call is now 56/62p. You sell the Call at 56p, the bid price, to close your position.

Calculating the result

Your profit is calculated as follows:

Profit

It is important to note that our Share Options are off-exchange contracts that cannot be exercised. You can, of course, close a position in a Share Option on our quotation at any time before expiry; positions not closed in this way are automatically cash-settled on expiry.