I have been trying to explore selling Put options for IWDA, because I do not mind owning it at a cheaper prices.
However, I can't find the option chains on the stock, but it seems that I can do that on other US stocks. Is it simply not available to trade on IBKR, or I do not have the relevant permissions?
Posted Dec 17, 2022, 3:05 PM UTC
[deleted]
You should check the rules and regulations around options on European stocks and ETFs. Here in North America, we draw a distinction between "European-style" options which the purchaser can exercise only on expiry and "American-style" options which can be exercised at any time. If your goal is to own North American ETFs, the standard route for EU residents is to sell a put option on the ETF at a price that is almost certain to be assigned to you.
[deleted]
You might look into this: write a near-the-money put on the US ETF you want to own. Choose a strike which is likely to be assigned to you. When the ETF is assigned, you will own the ETF at an advantageous purchase price. (When a short option is assigned to the seller, the seller keeps the initial premium). You should then be able to write covered calls on your ETF.
Disclaimer: I am a retired Canadian bureaucrat. I am not a specialist in securities management or in securities law. I know little EU law. You will need to do your own due diligence to ensure that this strategy will work.
[deleted]
IWDA does not have an options chain, and it is not even listed on the US market.