Macquarie allows options to be written against margined stock

Last December the Options Clearing House approved margined stock as security against option positions. ie writing call options against your geared portfolio to generate option premium income. While not for the novice investor, this strategy allows investors to generate income when their portfolio is stagnant.

The margin lenders who allow clients to lodge their margined stock as security are JDV Margin Lending Pty Ltd, Leveraged Equities and JB Were Equity Finance. Macquarie margin lending is the most recent margin lender to join this list.

Margin lenders have been expanding their service offering in a number of areas including expanded approved securities lists, online services, installment gearing and more recently with regard to writing of options.

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