ADR Stock Options Trading

ADR
Stock Options Trading
By
www.Options-Trading-Education.com

Many investors and day traders find
profit in foreign stocks.

http://www.options-tradingeducation.com/21668/adr-stock-options-trading/

They typically trade these stocks in US
markets via American Depository
Receipts also referred to as ADRs.


If you would like some useful stock
option trading information regarding
ADR stock options trading read on.


Where Do You Go
for ADR Stock
Options Trading?

ADR stock options trading takes place
on the Chicago Board Options
Exchange, CBOE.


There are many exchange traded
funds (ETFs) designed to track foreign
stocks.


Examples are iShares® MSCI Australia
Index Fund - EWA, SPDR S&P China
ETF - GXC, or Vanguard European
ETF - VGK.


ADR stock options trading provides
access to foreign markets but with the
transparency and protection of trading
in the USA.


ADR stock options trading with these
ETFs means that Securities and
Exchange Commission rules apply.


These funds and the various foreign
derived ADRs must comply with SEC
rules governing accessibility of
information and transparency.


How to trade options on an ETF
containing ADRs is same as trading
options on individual stocks or ETFs.


A List of ETF for ADR Stock Options
Trading


BKF - iShares MSCI BRIC Index Fund
DGT - streetTRACKS® - DJ Global
Titans Index Fund
EEB - Claymore/BNY BRIC
EEM - iShares® MSCI Emerging
Markets Index
EFA - Options on iShares® MSCI
EAFE® Exchange Traded Fund

EWA - iShares® MSCI Australia Index
Fund
EWC - iShares® MSCI Canada Index
Fund
EWD - iShares® MSCI Sweden Index
EWG - iShares® MSCI Germany Index
EWH - iShares® MSCI Hong Kong
Index

EWI - iShares® MSCI Italy Index Fund
EWJ - iShares® MSCI Japan Index
EWL - iShares® MSCI Switzerland
Index Fund
EWM - iShares® MSCI Malaysia Index
Fund
EWP - iShares® MSCI Spain Index

EWS - iShares® MSCI Singapore Index
Fund
EWT - iShares® MSCI Taiwan Index Fund
EWW - iShares® MSCI Mexico Index
EWY - iShares® iShares MSCI South Korea
Index Fund
EWZ - iShares® MSCI Brazil Index Fund


EZA - iShares® MSCI South Africa
Index
FXI - iShares FTSA/Xinhua China 25
GXC - SPDR S&P China ETF


HAO - Claymore/AlphaShares China
Small Cap Index ETF
QDF - BLDRS Emerging Markets 50
ADR Index Fund
VGK - Vanguard European ETF


Foreign Stocks and
Currencies


Foreign stocks in their own markets are
not denominated in US dollars.


In order to sell their stocks on US
markets, foreign companies go through
the steps of registering their stocks as
American Depository receipts.


This means that one can buy and sell
the ADRs in US dollars. Likewise, ADR
stock options trading takes place in US
dollars.


A factor to always keep in mind with
ADRs is that the value of the stock in
US dollars will typically vary with the
exchange rate between the US dollar
and the home currency of the stock.


That is to say if the price of XYZ stock
in Germany remains the same in Euros
but the Euro goes up ten percent
versus the US dollar, the price of the
ADR will likely rise by ten percent even
though the home price of the stock in
question did not change.

Many who engage in ADR stock
options trading follow the same
fundamentals as those who engage in
Forex options trading.


ADR Stock Options Trading

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Mehr von InvestingTips

Mehr von InvestingTips (20)

Kürzlich hochgeladen

Kürzlich hochgeladen (8)

ADR Stock Options Trading