Options are considered complex products and there can be several reasons why you might not be able to buy, sell or view options on the platform.
- Why can't I see options on the platform at all?
- Have you completed the appropriateness test?
- Have you enabled writing (shorting) of listed options - stock and contract options?
- Why am I unable to short a contract option?
Why can't I see options on the platform at all?
You might not be able to see options on the platform at all. The reason might be, that your non-tradable instruments are not visible.
To enable the visibility of non-tradable instruments, navigate to the menu > click Platform settings > click Platform & Trading > enable the visibility using the toggle as shown below:
Enabling non-tradable instruments will not allow you to trade them. The reason you can't trade them, may be linked to one of the reasons presented below.
Have you completed the appropriateness test?
If you wish to trade options, Saxo wants to ensure that you have the required knowledge and understanding of the implications of dealing with those financial instruments.
To read more about the appropriateness test and how to take the test, navigate to this article:
What is the Appropriateness / Product knowledge test?
Have you enabled writing (shorting) of listed options - stock and contract options?
Writing/shorting of listed options requires activation of an advanced options trading profile. This is only applicable for stock options and options on futures & indices.
In order to enable it, you will have to acknowledge that you are aware of the risk involved in shorting options by reading and accepting the conditions.
To request the advanced options trading profile, please submit a ticket,
by going the main menu
> Your account >
Request account services >
Enable Short-Selling of Listed Options > confirm you
have read and accepted the conditions and Submit.
Alternatively, you can now access listed options for short selling on the trade ticket, and you’re ready to go.
Why am I unable to short an option after enabling the short options feature?
You may encounter situations where you are unable to short an option, even after enabling the short options function. In such cases, you will receive the following error message:
"You are only allowed to sell call options as part of a covered call strategy on high-risk rating securities."
This issue is connected to the rating of the contract option. If the rating of a contract option is 6, then it is only possible to short sell it as part of a covered call if you possess the sufficient stocks to cover.
Why can't I sell stocks that are a part of a covered call?
If you hold a covered call strategy and attempt to sell the stocks that are designated to cover the short call, you will encounter a rejection with the following reason:
"Closing underlying position used in a covered call strategy is not allowed for high-risk rating security. Close the short call option(s) first."
If you wish to close the stock position that covers the short call in the covered call strategy, you should close short call options first.
Where can I view the rating of an instrument?
You will always be able to find the rating of an instrument in the Trading Conditions under Instrument.
Instruments with a rating of 6 implies higher margin requirements and lower collateral terms than lower ratings. A significant part of the rating depends on the market capitalization, liquidity, volatility, country of incorporation, industry and M&A Activity of the underlying instrument.
More information on ratings please click What is a rating