Interesting. Does anyone know what the counterparty risk is like here? Eg, am I gambling on the ETF continuing to be provided, the option market maker not going bust, the relevant exchange continuing to exist, etc. (the first and third generally seem like reasonable bets, but in a short timelines world everything is high variance...)
Listed options are secured by the Options Clearing Corporation. I don’t think they’ve ever failed to secure an options trade, including through covid and the 2007-8 financial crisis. I don’t think this is the biggest concern about the trade.
Interesting. Does anyone know what the counterparty risk is like here? Eg, am I gambling on the ETF continuing to be provided, the option market maker not going bust, the relevant exchange continuing to exist, etc. (the first and third generally seem like reasonable bets, but in a short timelines world everything is high variance...)
Listed options are secured by the Options Clearing Corporation. I don’t think they’ve ever failed to secure an options trade, including through covid and the 2007-8 financial crisis. I don’t think this is the biggest concern about the trade.