About Us
Hi, I'm Blake, the Founder of OptionsAU.
Derivatives ... Options ... Have such a negative a stigma in the world of wealth. Last time you heard derivatives used in a sentence, it was likely followed by:
"Options are too risky, they use leverage, and they require margin which can cause margin calls (haven't you seen the movie!?)"
When is the last time you've heard a fund / advisor or investment bank talk about derivatives? Likely never. However, the majority of options trading comes from institutions. Is there something to hide?
The more time I've invested into being a finance professional, the more I'm convinced this is no coincidence..
OptionsAU was created to change the narrative around options and showcase the power of strategic use of derivatives within a portfolio. Options contracts are, without question, the most versatile and valuable tools in finance. Whether it's hedging a portfolio, speculating on price, or generating cash flow, they can enhance any strategy, if implemented correctly.
Strategic use of options within an equities portfolio can actually reduce risk, increase consistency of returns, and provide negative correlation to other assets.
They are the only instruments that can benefit from factors other than price movement, like time decay and Implied Volatility - extrinsic value, which creates so many opportunities.
Founder Story
Blake here, I've got to say first of all, I've got a derivatives problem.
My fascination with the options market began in university, particularly with how options are priced, the unique strategies they enable, and their diverse use cases. Making money from the market without relying on price movement. Hedging a portfolio without selling down and moving into cash. Ever since then, hearing a fundie say they're reducing risk by increasing their cash balance has me startled.
My first professional job immersed me in derivatives, from supporting an options trading platform and the ASX Options Trading Game to creating and offering over-the-counter packaged options products to High-Net-Worth investors. This exposure to diverse trades and unique strategies allowed me to clearly see what was effective and what wasn't. That's what I want to share with you.
Did you know: The majority of derivatives trading comes from institutions, yet most of them never talk about it...
Australia's biggest "Low-risk" LICs, including AFIC and ARGO both use derivatives in their portfolios. Check out their annual report!
What to expect from us
OptionsAU is built for savvy self-directed traders to become better asset managers of their own portfolios, using the tools that the institutions use but never talk about. If you want to be more involved in your assets than passive strategies, we're here to explore that.
The content provides education, insights, research and more to help you hone in on your skills, develop trading plans and test ideas. It's not going to be for everyone, only the curious minds.
I'd like to turn this into a community to share ideas, assist each other and stress-test strategies; nothing off the table.
My door is always open, send an email to me at anytime at Blake@optionsau.com
That's the story behind OptionsAU. I hope you'll stick around, subscribe to our newsletter, and gain valuable insights into learning and using options in your portfolio.