Lesson Option strategies in registered accounts

Overview

Learn more about the options strategies available in registered accounts like the TFSA or RRSP.

Registered accounts like TFSAs, FHSAs, and RRSPs are able to trade up to level 2 options strategies.

Option strategies are a combination of buying and selling different types of options (calls/puts), sometimes combined with stock/ETF ownership (or shorting) to form a trading strategy.

Options trading and strategies can enable additional flexibility in registered accounts. For example: Short stock positions are prohibited due to CRA rules, but an investor wishing to profit off a decline in price can instead purchase a put option.

This article will focus on these strategies available in registered accounts:

  • Long Call
  • Long Put
  • (Long) Married Put
  • (Long) Covered Call

Before jumping into the world of strategies, make sure you understand the basics of options.

Check out our article, Introduction to trading options, for a thorough overview of what options are, how they work, and how to understand the sometimes complex and confusing terminology. 

Note: The information in this blog is for information purposes only and should not be used or construed as financial, investment, or tax advice by any individual. Information obtained from third parties is believed to be reliable, but no representations or warranty, expressed or implied is made by Questrade, Inc., its affiliates or any other person to its accuracy.

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