This may be too specific and may just need to call my broker to confirm. For context I am a Canadian resident and majority of holdings are in a CAD account vs the USD account.
For most of the large cap equities(and some mid cap). The Canadian companies I hold are inter listed on both the TSX and US stock exchanges. I have 3 questions. Would it be best to just trade the US options for liquidity reasons/ spread capabilities? My broker does not offer multi leg spreads on Canadian options. Only the US options.
Can I write covered calls on the position using the US option within a CAD account? Or will I have to call my broker and get them to index the stock on the USD side of the account so I can sell them on the US exchanges. (Eg own the equity in a CAD margin but want to sell the USD call against it.) Yes I understand the strikes and price of the underline are different because of the exchange rates.
And on a completely other note, is there any broker in Canada that offers multi-leg Canadian options? Or is liquidity/infrastructure just not there for it?
Trading US options on Canadian stocks
byu/AOB23423 inoptions
Posted by AOB23423
1 Comment
Spread and liquidity wise, you need to trade the US listing.
As far as the currency denomination of your account, you will need to clarify with your broker.
I have only used IBKR in this circumstance, they allowed me to hold both CAD and USD in my margin account.
Whether or not you can sell CC will depend on your level of options clearance.
Edit: stocks listed on different exchanges are not the same security for clearing purposes, even though they are technically the same stock. You need to own the exact underlying to write covered calls