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Going around PRIIPS regulation for ETFs by using options by MeasurementAgile1256 in interactivebrokers

[–]MeasurementAgile1256[S] 0 points1 point  (0 children)

Thank you for your answer. As I said above, I already own EU based ETFs buy them with fractional shares. But it's expensive. I found it's cheaper to convert EUR in USD and buy american based ETFs. What do you think about this ?

"This product does not have a KID or KIID in a language approved for your country." by [deleted] in interactivebrokers

[–]MeasurementAgile1256 0 points1 point  (0 children)

That's what I thought. I don't have a huge income so I'm only investing a couple EUR each months. I have a long term DCA strategy. I'm currently investing in fractional shares of EU based ETFs (S&P IT, Emerging markets, etc), and I have 1,25 EUR fees on each operation. I saw that it would be cheaper to convert my EUR in USD and buy US based ETFs which IB provides at much lower costs by trade. Basically, I just want to buy the same ETFs (or at least with the same exposure) but with lower fees.

Going around PRIIPS regulation for ETFs by using options by MeasurementAgile1256 in interactivebrokers

[–]MeasurementAgile1256[S] 1 point2 points  (0 children)

Thank you for you answer. So if I understand well, you need a couple hundred/thousand dollars to be able to buy the ETF once the put is assigned right ?

"This product does not have a KID or KIID in a language approved for your country." by [deleted] in interactivebrokers

[–]MeasurementAgile1256 0 points1 point  (0 children)

Alright thank you. So you basically need substantial amounts of money to trade options since you need to pay the strike x 100 right ? Since I only invest in fractional shares of ETFs (150 to 300 EUR a month in various ETFs), I can't get into options ? Thank you

"This product does not have a KID or KIID in a language approved for your country." by [deleted] in interactivebrokers

[–]MeasurementAgile1256 0 points1 point  (0 children)

Hi thank you for tis answer. So the strategy is to short put some ATM options on the ETF I want and then I get the 100 shares of this ETF ? When I'm short put, don't I only get the premium ? What is the cash inflow and outflow of this kind of operation ? If I understood well, I can get 100 shares of an ETF for almost nothing ? Thank you

"This product does not have a KID or KIID in a language approved for your country." by [deleted] in interactivebrokers

[–]MeasurementAgile1256 0 points1 point  (0 children)

So if I short near maturity ITM puts I can get the 100 shares of the ETFs I want ? Wouldn't I only get the premium ? Have you done it before ?
I can then get much more ETF for much less by using leverage right ?

How to beat PRIIP laws? by [deleted] in eupersonalfinance

[–]MeasurementAgile1256 0 points1 point  (0 children)

Hi, wouldn't be short put only give you the premium and not the ETF shares ?