Stock Options

 
 
  • Expand your portfolio with Stock Options and unlock 
    new strategies for bullish, bearish or sideways 
    markets

When you trade Options with Saxo Bank, you get access to the most liquid Options on Stocks and Stock Indices throughout the US, Europe and Asia-Pacific. You can trade listed Options seamlessly from any device via our award-winning trading platforms, and we give you the tools, charts and support you need to take on the market – any market.

Stock Options can help you lock in your equity gains, as well as expand your trading opportunities with a variety of strategies. Use Stock Options to protect your portfolio in declining markets, or use them to play volatility around earnings, generate extra income by writing calls and more.

Why trade Stock Options?

  • Hedge your portfolio of stocks
  • Leveraged directional plays, with a known loss potential
  • Position yourself for up, down and sideways markets
  • Enhance revenues on your portfolio - write options against your portfolio and keep the premium

Trade Stock Options with these Saxo Bank benefits:

  • No minimum ticket fees and no carrying costs
  • Online exercise of options
  • Service and support in multiple languages
  • Part of our multi-asset offering – hedge or use enhancement strategies on your Saxo Bank portfolio
  • Use Stocks and Bonds as collateral

Stock Options are part of our broad equity offering that also includes Stocks from 36 major exchanges, Single Stock and Index CFDs and Stock Index Options.

Product features

Available Stock Options

All Stock Option instruments are listed on an exchange and there is no market-making or matching of client trades and orders. The full list of instruments and exchanges on which they trade can be seen in our trading platform.

See a summary of  available Stock Options

Client margin profiles

As for Contract Options Saxo Bank operates with two margin profiles:

  • A basic profile by default which enables clients to buy options only – puts and/or calls.
  • An advanced profile for individually assessed clients which enables the client to do the same as the basic profile and to write (sell/short) options and receive margin benefits on option strategies (combinations of options and/or underlying positions). In case of a margin breach and stop-out is triggered, all option positions will be closed.

To be put on the advance profile contact your Account Manager.

See more about  Client margin profiles

Exercise & settlement

Stock Options at Saxo Bank are American style options. American style options can be exercised at any time before the expiry.

Options can be exercised online from the trading platforms or are auto-exercised at expiry.

See screenshot

Expiry Scenarios

All positions are subject to an Auto-Exercise procedure at expiry:

  • All long positions on in-the-money options are assumed to be exercised.
  • All short positions on in-the-money options are assumed to be assigned.
  • All positions on out-of-the-money & at-the-money options are abandoned.

A Call Option is in-the-money when the strike price is below the market price of the underlying asset.

A Put Option is in-the-money when the strike price is above the market price of the underlying asset.

Abandonment of in-the-money positions is not supported.

Thus, clients should close their option positions prior to expiry to avoid delivery.

 

Strategy*)

Cost / Margin

If exercised / assigned

Funding requirement

Long Call

Premium paid

Cash to buy the underlying required

Long Put

Premium paid

If the client has the stock it is delivered
Else
The client is given a choice: buy stock or sell-to-close

1 day funding charge

Short Call

Full margin

Short the stock, Saxo Bank acquires the stock and delivers

1 day funding charge

Short Put

Full margin / available cash

1 long stock position

Cash to buy the underlying required

Covered Call

Margin reduction from cover

Long position is delivered, when the short gets assigned

Strategies

Spread margin

If the short leg gets assigned, the long leg can be exercised automatically

As assignment and exercise happens the same day, no funding is required

 

*) See more on the Option strategies

Orders supported

  • Limit
  • Stop
  • Market orders

Both One-Cancels-Other (OCO) and Good-Till-Canceled (GTC) parameters are available.

Stop orders are, by definition, “Stop if traded” orders, meaning a stop order can only be triggered if it trades for a minimum of one lot in the market. As the price of the Stock Option moves with the underlying, you can be in a situation where you reach the level of your stop, but the stop is not triggered as no one is trading on the strike.

Instead of stop orders, we recommend that clients use the alerts in the platform at specific price levels.

Physical delivery & Default handling

Final Settlement of Stock Options requires physical delivery of the underlying stocks vs. payment of the strike value in cash. In case a client is holding a stock options position, but is short either cash or stocks, he will not be able to settle the options position and the client will fail to deliver on his contractual obligation.

As a general rule, Saxobank clients have responsibility to meet the delivery requirements related to their option positions. As such Saxobank will not pre-emptively act on client positions to avoid delivery failure. It will be the responsibility of the client to manage his positions especially when approaching expiry to make sure he can meet any delivery obligations. Notwithstanding the above, in case Saxobank could be exposed to uncollateralized losses incurred by clients, Saxobank reserves the right to act pre-emptively and close-out some or all of the client’s positions that could cause potential losses which the client cannot carry on his account balances.

In case a client failed to meet his delivery obligation, Saxobank will act on behalf of the client and without the need to notify the client in advance to resolve the delivery failure. Saxobank will resolve a short stock position by acquiring the required stocks at market price, Saxobank will resolve a short cash position by liquidating any or all positions under delivery and if available any long option position that provided cover for a settling short option position.

Transactions executed for the purpose of default handling, will be charged additional commissions.

Therefore Saxo Bank recommends the Clients to close the position before expiry.

Trading platforms

Stock Options are tradable from our industry-standard options chain in the SaxoTrader and the SaxoWebTrader, and tradable from the SaxoMobileTrader apps.

No Hidden Costs

No need to worry about any hidden fees: trade Stock Options with no minimum ticket fees or carrying costs. 
Exchange fees still apply. *​​​

Ongoing support

You have a question? We have answers.

Interact with our trading experts via telephone, chat or email 24/5 a week. You can benefit from a wide range of educational resources available through our academy and webinars. On top of that, you will have access to market analysis and frequent Option trade views from our trading experts, #SaxoStrats.

Volume-based Commissions

Contracts per Month​​
​Currency ​0-1,000 ​1,001 - 5,000*
​AUD
​AUD 5.00 ​AUD 3.00
​EUR
​EUR 3.00 EUR 2.00
​GBP
​GBP 2.5 ​GBP1,5
​USD
USD 3.00 USD 2.00
​CHF
CHF 4.00 CHF 3.00
​HKD
HKD 30 HKD 20
Minimum Ticket
None​

 

* Above 5,000 lots per month clients are encouraged to speak with their Account Manager to negotiate commission levels based on the volume they offer.

See all  trading conditions

FAQ

See the most frequently asked questions about Stock Options trading with Saxo Bank.
FAQ Stock Options 

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Product Risk

Danish banks are required to categorise investment products offered to retail clients depending on the product’s complexity and risk as: green, yellow or red.

An option is categorised as a red product as it is considered an investment product with a high complexity and a high risk. See also the 'Product Risk Categorisation' located under our General Business Terms.​​

General  Business Terms
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