For those that really like a punt....

[????]

...RBS at 12p...got to be worth it purely as a bet (NOTE NOT AN INVESTMENT ) surely? If they don't go down, let's call that evens chance, then I can see them the quadrupling in two months or so...so that's value in betting terms.....

[Sandperson]

Quids. I've been interested in doing something like this. Small investment, an amount I can afford to lose but I have no idea how to go about it. Any tips? Anyone I can go to? Internet or broker? Any advice gratefully received.

[Drxyster]

Try "Interactive Investor" internet site. ?10.00 per trade. Incidentally site owned by Halifax Bank of Scotland.

Hope this helps if you fancy a punt, just done a similar trade for 500 "Barclay's shares. Wish all both good luck.

[????]

Sands - What Drxsyter said, I think Barclays have a decent trading platform too where you can buy.T here are some cheaper ones too but most occasional user feel better with a name. Now if you're really brave you can do a CFD or spreadbet on the share price which will give you more leaverage....but it also is partly why we are in the sh!t we are in!!! If you want to do that IG Index is ok...but that's more scary!! Infact, forget it...just buy some shares...I think they've a good chance

[matthew123]

I use Selftrade. Think the commission charge is about ?12. But what I really like about Selftrade is they have only a single quartly charge of ?6.50 for all your self select ISA/PEP schemes.

[SteveT]

Like any other bet do not use your bread money, only bet the amount you are happy to never see again.

I would have thought a punt on LIDL shares a safer bet in these belt tightening, recessionist times.

[????]

Nope, that's priced in

[Sandperson]

Thanks for the advice. I've registered with Interactive Investor so just got to wait for the paperwork to come through. I kind of understand the principles of spread betting from Sporting Index and Betfair but I think it's a quick way for a fool like me to be parted with my money quickly.

[????]

Good luck with it Sands, they could well get nationalised and you'll lose it all...but they were ?3.50 plus a year ago!...I've had a bit...but not a spreadbet

[Jeremy]

If you think this is an all-or-nothing scenario, why not buy options instead? (I've not checked to see what's being offered though)

[Sandperson]

That sounds complicated Jeremy. I want straight down the line buy a share watch it go down or up.

[Jeremy]

Not really... with options you would either make a lot (potentially several times what you would with the share) or you lose the lot!

[????]

Barclays up 72%

Lyodds up 26%

RBS up 20%

hope you followed your hunch Sands...I'm a happy punter...:))

[Sandperson]

Ha, ha, registration documnets haven't turned up in time. I guess, as usual, I have missed this boat.

[AllforNun]

yer right....I had the same thoughts at 67p !!!! 4 months ago.....stand by for nationalisation and kiss goodbye to your shares.

[????]

Maybe A4nun but RBS Shares have now doubled so I've taken out my original value and left with a 'free' set of shares that currently are worth what I put in originally and may still double again......so not going to lose anything

[????]

Jeremy - you couldn't do Spreads or CDFs on these shares (with IG) as the market was so volatile they'd suspended them or put in absolutely massive margins

[Jeremy]

OK, hence my get-out clause of "I've not checked to see what's being offered". I admit I know relatively little about the consumer industry, spread-betting, etc.

However, options do not require a margin... and even if nobody was issuing new contracts, surely there are exchange-traded options out there for RBS and other banks?

[Reg Smeeton]

I bought RBS at 11p so I'm laughing...or would be, except that I also bought them at ?1 and later at 44p. Still, if they make it back to 38p I'll break even. But it is so much more exciting than leaving it in a building society.

[????]

32p at one stage this morning...

[snorky]

Jeremy Wrote:

-------------------------------------------------------

> OK, hence my get-out clause of "I've not checked

> to see what's being offered". I admit I know

> relatively little about the consumer industry,

> spread-betting, etc.

>

> However, options do not require a margin... and

> even if nobody was issuing new contracts, surely

> there are exchange-traded options out there for

> RBS and other banks?

Options are great if you want to to silly punts of absurd products - eg a short dated ?5.00 call on RBS will be almost zero to buy - nominal.

anything that is a decent delta will reuire a hefty slab of up front investment

the beauty of options , is that you can effectively go short without having to go through the arsewipe process of stock borrowing or treading dangerously in an illiquid index site

Pub bores may waffle on about black scholes, but theyse muppets innit, cos they doesnt take account of some aspect of volatility bludz

[matthew123]

For the small private investor, Covered Warrants (same principle as Options but cheaper in size) are a good investment stratagy if you think an underlying stock is going to move up or down from a Covered Warrant strike price before it's maturity date. As with Options, the Covered Warrant although cash settled, gives you the right but not the obligation to buy the underlying stock at a fixed price. Your maximum loss is the one off premium you pay for the Covered Warrant plus any Broker trade commission.

The further out of the money and less time to maturity the cheaper the Covered Warrant. For instance today you could have bought a Goldman Sachs RBS Call from your Broker at a strike price of 80p for 0.93p with a maturity of June 09. Now if tomorrow RBS suddenly shot up to 80p* then your Covered Warrant would, in theory, fly up to at least a tad under 80.93p. So overnight the value of your Covered Warrant would have increased by 87 times. A ?1,000 investment would suddenly be worth ?87,000 - whereas if you invested your ?1,000 in the actual RBS stock (30p) it would then be worth ?2,666 (80p a RBS share).

Of course if the RBS never reaches 80p before June 09 then you lose your ?1,000 on the Covered Warrant (unless you sell it before expiry) - whereas if you bought the RBS stock outright then it would retain some value depending on actual RBS price.

* This is purely to aid the example

[????]

MMM...RBS shares at 80P by June the first sounds like about 87-1 to me too mat....presumably its trading price detioriates or rises with market sentiment too

[matthew123]

Yup it is a very long shot and wouldn't recommend anyone using that example as an investment decision as you'd probably be better off putting it all on Porto to beat Man U at Old Trafford Tuesday night!!

BTW, the example I used is actually a Societe Generale RBS Warrant not Goldman Sachs.. if anyone interested in seeing how much the RBS warrants fluctuate each day - http://uk.warrants.com/services/quotes/search.php?family=WARRANT&typeul=SHARE&ullabel=RBOS

[Mikecg]

Watch the RBS shares plumit they have just announced 9000 jobs are going.

http://www.financemarkets.co.uk/2009/04/07/9000-jobs-to-go-at-rbs/

The stock market gamble at this stage is untenable.