Options, futures & CFDs (#450)

Simon Shares

• SAB Zenzele Kabili trading at R180, at least 3x fair value?
• Local GDP for the first quarter was 1.1% QoQ. Kinda middling.
• Stor-Age* (JSE code: SSS) results.
• Thungela Resources (JSE code: TGA) lists.
• AdaptIT (JSE code: ADI) gets an improved offer from Volaris - 700c.
• Life Healthcare (JSE code: LHC) bouncing again because of the Alzheimer drug. But it a very long road.
• Sirius Real Estate (JSE code: SRE) results were excellent.

* I hold ungeared positions.

Upcoming events;

• 24 June ~ JSE Power Hour: Rand ~ stronger for longer

Options, futures and CFDs

Options (warrants on the JSE)

• Complicated
• Risk is only 100%.
• Right to buy or sell.
• Not much offered in SA.
• Long or short, depending on if call or put.
• Can trade on Safex, but institutional size trades only.

Futures

• Exchange-traded
• Equity, indices, commodities, currencies & agriculture.
• Long or short.
• Interest charge and dividends built into the price.
• Require a Safex broker.
• You can lose more than you started with.

Contract for Difference (CFDs)

• Over the counter (OTC) traded.
• Counterparty risk.
• Issued on anything.
• Long or short.
• Interest paid/earned daily.
• No expiry.
• You can lose more than you started with.