Tag Archives: L.ETF CAC 40 D-EUR

I like Zero Hedge

This is a quote by Tyler Durden on Zero Hedge.

We wonder whether the French AMF is also aware that one can just as easily create identical synthetic shorts by buying puts and selling calls on the names in question¬†or maybe nobody in the French regulatory body has graduated beyond cash products and into derivatives.”

You can find the official shorting statement information on his posting. Why is it in English?

I was curious if I could synthetically short AXA or BNP. These shares are traded on the $CAC. I found a volume of 50 on the Sept. calls and a volume of 70 on the 11.5 calls in AXA and no volume on the ATM BNP options. I’ve never traded options on the european markets, but this still seems odd. AXA is up 2% on a volume of 5.6 million shares, and BNP up 3% on 3 million shares.

Apparently, it’s not that easy to create a synthetic short on these markets, at least for me.