Hi everyone, I’m working on combining options and CFD strategies to build smart, low-risk or even zero-risk systems. I’d love to connect with anyone interested in brainstorming together. If you're open to sharing ideas and exploring possible structures, let’s set up a Zoom meeting and talk through it. Drop a reply or DM me if you'd like to join!
I'm trying to make sure that any loss I take on the option side is covered or protected by the CFD side — or vice versa.
My idea is to use options for low-cost exposure without financing fees, and hedge with CFDs when needed — aiming for minimal risk and maximum opportunity.
I'm trying to develop a method that allows me to stay in trades calmly and confidently, especially during market volatility.
Hate to disappoint you but options have financing it's called cost of carry. Why don't you give an example doesn't have to be a real one of what you want to achieve in your setups and the board might show you how to accomplish this with just options.
I’m thinking of a strategy where I buy a Call or a Put and open an opposite position in CFDs. For example, if I pay a $100 debit on the option, I aim to make $300 on the CFD if the price moves the right way. The problem is that option premiums are often too high, which makes this hard to balance. Another idea I’m exploring is using Iron Condors and placing opposite CFD pending orders at the upper and lower break points. The goal is to collect the credit if the price stays inside, and if the market breaks out, the CFD takes over and offsets the option loss. The only issue is when the CFD order is triggered and the price reverses quickly — that’s the risky part I’m still working on improving.
"I’m thinking of a strategy where I buy a Call or a Put and open an opposite position in CFDs" Say you buy a call, then you say you would short the cfd = synthetically you are now long a put with the combined position. The iron condor strategy already has stops built into it. You are just trying to avoid taking the loss. Take the loss and move on your initial analysis has been proved wrong if it breaks either of the short strikes.