Want to apply collar strategy with cfd Index and cfd index option . Which brokerage offer it

Discussion in 'Options' started by Millionaire_Raj, Apr 12, 2020.

  1. would like to do collar on SPY with cfd Broker to limit my risk with my limited capital(2000 usd) .
    Any CFD brokerage offering CFD index and option other than IGtrade( seems complex) & plus 500 (only monthly option Abbott ).

    Kindly advice the right capital required required for collar strategy on spy .
     
  2. Atikon

    Atikon

    With that little capital go offshore for a 100x leverage and choose a non volatile stock/index. I don't know any offshore broker that I looked into (regulation/deposit secured/not betting against clients)
     
  3. The SPY or SPX 0.10 CFD margin is just 700-1000 USD and 500 USD for weekly SPY PA.
     
  4. traderjo

    traderjo

    When you say collar you mean say LONG INDEX futures + LONG ATM PUT + SHORT ATM CALL
    is that what you are thinking ? it might be possible to do this using exchanged traded Futures and Futures options but cross margin would be difficult on the other hand if you are thinking of using Try Saxo they offer CFD + OPtion on CFD ,,, becasue although there are many CFD providers there are very few offer Options on CFD!
     
  5. Yes. But with slight variation LONG OTM PUT (not ATM) and Short OTM CALL (not ATM).
    Does Saxo have facility to convert existing ITM call or ITM put option to bull / bear credit spread without need to bring fresh margin money as margin for selling is high also I’m just selling ITM call/ put so no risk . Pls confirm
     
    Last edited: Apr 19, 2020
  6. traderjo

    traderjo

    Check with Saxo in your country I only know from past that outside Exchange traded options other OTC options were by Saxo