Options and mifid

Discussion in 'Options' started by HeavyMetal, Jul 28, 2022.

  1. Good day,
    Being EU resident I am unable to purchase US ETFs, like, SPY
    At the same time I can buy SPY options (IB cash account)
    Question - can I sell SPY options?? (if I change my IB cash account to margin to be able to sell)
    If yes - means, if I sell SPY options and later assign short put - I will have long of 100 "prohibited" SPY, on my account?
    Is that a workaround? Or it won't work.
    Thanks!
     
  2. cesfx

    cesfx

    Yes it will work. You are not allowed to buy the etf, but you can hold it and/or sell it.

    A short put or a long call that expire itm, or both of them (like a synthetic long atm), should do the job.
     
  3. Wow! Thanks
    Funny)
    Yeah I thought it might work. But it's same to purchase no))? Yet works.
    That mifid is so dumb.
     
  4. cesfx

    cesfx

    Yes, mifid is totally dumb and useless.
    They say you can't touch ETF because mifid is the to safeguard retail investor bla bla bla crap. As those ETF do not comply with all EU crap.
    But you have CFD instead! So the regulator say, you can't trade the real thing as a retail, but you are lowed to trade the options, sell
    them naked, deal with assignment, or buy/sell an overleveraged OTC fake... But not the real thing, that's dangerous because it doesn't comply.

    Must be one of those absurd regulation wanted by someone who gains profit by corrupting a few politicians...