Options Trading - Stock replacement strategy part 1 - Mechanics


The stock replacement strategy involves buying in the money options to simulate a position in the underlying without actually holding the underlying. Stock replacement is a great risk mitigation strategy, but it may also be helpful for any investors out there that have been restricted from owning their favorite ETFs. Europeans in particular may benefit here with the recent MiFID II regulations that heavily restrict US based ETFs. The stock replacement options strategy may be a potential solution so please ask me any questions you have.