Podcast: Options, futures and CFDs

In JSE Direct, Latest by Simon Brown

JSE Direct with Simon BrownSimon 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;



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.



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JSE Direct is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.



JSEDirect Podcast

Simon Brown - Just One Lap founderThursdays are all about hard-core investing with Simon Brown’s famous JSE Direct podcast. JSE Direct started life on ClassicFM in July 2008 and became a podcast in 2011. Every week Simon chats to industry experts, answers listener question (contact him here to send your Q’s) and gives his views on the state of markets and individual shares.

Reach Simon by email at simon@justonelap.com,

or Twitter @SimonPB



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