St George offers margin lending call options
TheSt George Bankhas opened the way for its margin lending clients and their financial advisers to enter the murky depths of call options.
Financial planners are now able to write call options for St George margin lending clients, which means the clients can earn money from their investments during times when their portfolio remain relatively static.
Money earnt from premiums paid for call options gives margin investors the opportunity to make money from their investment, which can be used to retire debt on their margin loan for example, during times when their investment is otherwise not appreciating.
The downside, of course, is that buyers of call options are likely to enforce their right to the option and buy the shares if the price of an investment does appreciate, effectively removing the gains an investor stood to make for selling the option in the first place.
“[Writing call options] is a useful strategy if the price of the particular shares a client holds is remaining relatively static,” St George head of margin lending Andrew Black says.
“However just as call options can enhance the potential for additional returns, it can also enhance the risks,” he added.
St George margin lending call options are available to financial planners and advisers with no transaction fees.
Recommended for you
A quarter of advisers who commenced on the FAR within the last two years have already switched licensees or practices, adding validity to practice owners’ professional year (PY) concerns.
Integrated wealth and financial services group Rethink has launched a financial planning arm called Rethink Wealth to expand beyond property investing and into holistic wealth management.
While adviser numbers continue to slowly creep back up, the latest Wealth Data analysis reveals they would actually be in the green for the calendar year if it weren’t for so many losses in the limited advice space.
Iress has appointed a chief AI officer to spearhead the fintech’s strategic focus on AI, with chief executive Marcus Price describing how the technology opens the doors to a “new frontier for wealth advice”.
