Using Options to Access U.S. ETFs as an EU Retail Investor

European retail investors cannot normally buy U.S.-domiciled ETFs like QQQ due to the PRIIPs regulation and the missing KID. Brokers block direct purchase to comply. However, you can still own such ETFs by using options. We’ll keep on using the very popular QQQ as an example.

The Workaround

1. Sell a cash-secured put on QQQ. One contract controls 100 shares. If QQQ closes below your strike at expiration, assignment occurs.
2. Receive 100 QQQ shares via assignment. You own the shares even though direct buying was blocked.
3. Sell the shares if desired. EU rules restrict brokers from offering non-PRIIPs ETFs to retail clients. They do not prohibit a client from selling an ETF already held.

What This Is and Is Not

• Bullish exposure path: You are paid premium and may acquire shares at the strike if assigned.
• Not a clean substitute: Sizing is lumpy (blocks of 100), timing is uncertain, and rolling is often required.

Key Constraints and Risks

• Capital: Minimum cash ≈ 100 × strike price. Example: $400 per share → ~$40,000 per contract.
• Assignment timing: You may not be assigned when you want the exposure. Deep ITM strikes increase assignment odds but reduce premium efficiency.
• Broker policy: Many EU brokers block purchases of non-PRIIPs ETFs but allow sales of positions already held. Policies can change. Client agreements reserve rights to close positions for risk or compliance reasons.
• Operational: Options expire. You must manage rolls, strikes, and expiries. Taxes differ for premium, dividends, and capital gains.
• Regulatory: Future rules could narrow or remove this path.

Practical Setup

• Account permissions: Enable U.S. options. Confirm assignment handling and settlement currency with your broker.
• Contract choice: Select strike and expiry to match target entry level and time window. Cash-secured only if you want delivery.
• Exit mechanics: If assigned, you can hold, write covered calls, or sell the shares. If unassigned, you earned premium but did not gain share exposure.

Cleaner Alternatives (UCITS)

For long-term Nasdaq-100 exposure, use PRIIPs-compliant UCITS ETFs:

• Invesco EQQQ NASDAQ-100 UCITS ETF (EQQQ) — TER ~0.30%.
• iShares NASDAQ-100 UCITS ETF (CNDX) — TER ~0.33%.
• Xtrackers NASDAQ-100 UCITS ETF (XNDX) — TER ~0.25%.

Bottom Line

The put-assignment path can create temporary exposure to QQQ for EU retail accounts that cannot buy it directly. It is capital-intensive, operationally complex, and dependent on broker policy. For most investors, UCITS Nasdaq-100 ETFs are simpler and adequate replacements. However, if you absolutely want access to U.S.-domiciled ETFs this is how to do it.