Macquarie Exchange Traded Options

Exchange Traded Options give you the right to buy or sell an underlying share at a particular price (the exercise price) on or before a specific date (the expiry date). When you exercise the option, you take up your right to buy or sell the share.

Exchange Traded Options offer you:

• the ability to hedge against a fall in a share price
• a speculative trading tool that gives you the potential to profit from your view about the future direction of a share
• the potential for greater returns than you might get from holding the underlying share (at a higher risk)
• a liquid investment because you can buy and sell them on the Australian Options Market
• the ability to buy or sell through an ASX Derivative Accredited broker
• the ability to generate income by short-selling or writing options against your existing shares.

now

Why would you use Exchange Traded Options?

You might use Exchange Traded Options if you:

• already own shares or you plan to buy shares and you want to earn income from them using options
• already own shares and you want to protect against a short-term fall in their prices
• want to profit from share price movements without having to own the shares
• want to buy or sell a share but you want some time to decide.

Call and put options

Exchange Traded Options can be call or put options.

Call options:

• give you the right to buy the underlying share
• are used when you believe a share price will rise, and you want to benefit from that movement.

Put options:

• give you the right to sell the underlying share
• are used when you believe a share price will fall, and you want to benefit from the fall.

now

This advice has been prepared by Macquarie Equities Ltd [ABN 41 002 574 923] and is general advice and does not take account of your objectives, financial situation or needs. Before acting on this general advice, you should therefore consider the appropriateness of the advice having regard to your situation. We recommend you obtain financial, legal and taxation advice before making any financial investment decision. All potential investors should obtain a Product Disclosure Statement available from us relating to that financial product and consider that PDS before making any decision about whether to acquire that particular financial product. To acquire the product, you must complete the application form which accompanies the Product Disclosure Statement.

For information relating to our financial services you should refer to the Macquarie Equities Ltd Financial Services Guide.

This material has been prepared based on information believed to be accurate at the time of publication. Subsequent changes in circumstances may occur at any time and may impact the accuracy of the information.