Is there chances that we will have options for KLSE stocks?
Somehow one reason why oversea market could make more consistent gains when holding on stock is because they are allow to sell call options
Scenario
You bought Topglove at rm25
You are looking to tp at rm30
Traditional way
You bought 1lot Topglove
You queue 1lot Topglove
That's it
You just wait, until it hit rm30
Options play
You bought 1lot Topglove
You sell 1 call option on Topglove at rm30
What would happen?
1) If Topglove go beyond rm30 on expiration date, you don't lose anything, you just pass the 100 stock to the Option Buyer
2) If Topglove keep fail to break rm30 on expiration, you will be collecting weekly premiums or monthly premiums until the day it hit rm30
The closest thing in Bursa would be warrant but too bad, warrant are more likely a hedging tool since you can't be the seller
If there's one reason not to provide options play, what would be the reason?
Will there ever be options for stock in KLSE?