Saxo Bank Options
2025-06-04 02:23:22

Saxo Bank Securities Expands Covered Call Strategy Options for Investors

Saxo Bank Securities Enhances Covered Call Strategy



In response to growing demand from investors in Japan, Saxo Bank Securities has announced an expansion of its covered call strategy starting May 2025. This new approach allows traders to utilize covered calls on all U.S. stocks eligible for options trading. This strategic adjustment aims to provide more investment opportunities and flexibility for clients as they navigate the financial markets.

Understanding Covered Calls



A covered call is an options trading strategy where investors sell call options on stocks they already own. This strategy mitigates risk since the investor owns the underlying stock, allowing them to cover the associated risks if the option is exercised. As a result, they can generate income from the premiums received from selling these options. Responding to significant customer feedback, Saxo Bank Securities has broadened the range of stocks available for this strategy, enhancing the overall trading experience for its clients.

Advantages of Using Covered Calls



Utilizing covered calls presents several advantages for investors. Primarily, it enables them to earn premium income by selling call options. Because these options are backed by the shares the investor holds, the associated risk is limited. Moreover, this strategy does not necessitate additional margin requirements, making it more accessible for those interested in starting options trading.

Risks and Considerations



Despite the benefits, it’s important to acknowledge the possible risks associated with covered calls. Should the stock price experience a substantial increase, investors might miss out on some of the profit due to the option being exercised. Conversely, if the stock falls, while premiums may help mitigate some losses, a decline in the stock's value can occur. However, by strategically selecting stocks and effectively managing expiration dates, it is feasible for investors to minimize these risks.

Innovative Services from Saxo Bank



Earlier this year, in May, Saxo Bank Securities launched a new online identity verification service, significantly reducing the time required for account openings. Customers can now start trading, including FX transactions, as quickly as 30 minutes after application submission. Additionally, the firm has been a pioneer by enabling futures trading on TradingView in Japan since April. These initiatives demonstrate Saxo Bank’s commitment to enhancing the customer experience and leading the industry.

Commitment to Customer-Focused Services



Through ongoing service improvements and feature enhancements, Saxo Bank Securities aims to be recognized as “the most customer-centric brokerage in Japan.” They are dedicated to catering to the diverse needs of each individual customer, ensuring a comprehensive service offering.

Comments from Johan Gade



Johan Gade, CEO of Saxo Bank Securities, stated, "As one of the world’s earliest fintech companies, Saxo Bank has continuously embraced challenges to provide customers with opportunities to profit from global financial markets. This latest initiative, enabling covered call strategies on all eligible U.S. stocks, is a direct result of valuable customer feedback. We believe this enhances the flexibility with which our clients can implement their trading strategies. We remain committed to offering an attractive and practical investment environment tailored to the diverse needs of our Japanese clientele."

About Saxo Bank A/S



Founded in 1992, Saxo Bank A/S is an online bank headquartered in Copenhagen, Denmark. The Saxo Bank Group, including Saxo Bank A/S, adheres to stringent financial regulations and supervises operations in 15 countries across Europe, the Middle East, and Asia, providing financial services to customers in 170 countries. With a robust balance sheet, the group is positioned with a stable financial outlook, projecting a total customer asset value exceeding 853 billion Danish kroner (approximately 18.62 trillion yen) by the end of 2024.

Calculated at a rate of 21.82 yen to one Danish krone as of June 3, 2025, 17:20 JST.

About Saxo Bank Securities Co., Ltd.



Saxo Bank Securities Co., Ltd., established in 2006, is a wholly-owned subsidiary of Saxo Bank A/S and operates as a licensed online securities firm under the Japanese Financial Services Agency. It offers more than 150 currency pairs for FX trading, over 8,500 CFDS, and more than 11,000 foreign stocks, including those from the U.S., Europe, and China. The company emphasizes competitive transaction fees, particularly providing zero fees for CFD trading and industry-low fees for U.S. stocks. For further details, please visit their website at Saxo Bank.

Regulatory Information



Registered in Japan as a Financial Instruments Business Operator (Kanto Local Finance Bureau Director (Kinsho) No. 239). Located at: 106-6036 Tokyo, Minato-ku, Roppongi 1-6-1, Izumi Garden Tower 36th Floor. Members of various financial and investment associations verify its operations.

Disclaimer



Please note that fees and associated expenses may vary per product, and trading may involve risks of loss. Derivatives trading (excluding buying options) can potentially lead to losses exceeding the amounts deposited. For detailed information on fees, risks, and additional information, please refer to Saxo Bank Securities’ trading documentation, trading tools, or the website.


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