Could you go a little more in depth of rolling the call option to a future date. Do you basically have to pay the premium again on the same 100 shares or 1 call contract? No sure how it works. Love your channel!
Wouldn't you need to ensure that the total amount you would pay for the stock would be lower than that particular yr's contribution limit ( assuming you had no additional room )
Would you mind clarifying your question? If you are buying the DITM call, the money you use for investment should be whatever you have in your TFSA. If you end up exercising the option to purchase the stock for long-term in your TFSA, yes, you should have that amount of cash in your TFSA. The amount of cash available in your TFSA is determined by 1) your contribution and 2) the investment return that you have from your previous contribution. Not sure if I answer your question correctly.
@@RealEstateTaxTips I'll try to clarify, this concept is very new to me. Let's say you had no contribution room from the previous yr's and only that current years allowable amount ( $6,000 ) if you had no cash in your tfsa and didn't want to sell any stocks but wanted to try this DITM method wouldn't you still need to make sure the total amount you might have to pay for the stock would be within that yr's allowable amount? hope that made some sense, I clearly don't fully understand the DITM method, lol
Is this advisable to do call option trading under TFSA? Aren’t we suppose to use TFSA for only long term investment rather short term trading? Please advise. Thanks
@@tonyjiang4991 if you watch the video, we did mention the possible scenario when market goes against you. A prudent investor would learn new strategy, understand the risks involved of each investment strategy, before making the investment decision. After all, you're the guardian of your own money. A 15 min TH-cam video should not be the *only* research a prudent investor should do. No investment vehicles are guaranteed to be a success, even keeping cash in your bank account has no guarantee (given that the government keeps printing money and the value of our dollar is declining).
@@RealEstateTaxTips Just discovered your channel. This is an awesome strategy and you covered it well. One of the best tips I've heard of regarding TFSA's in the past 5 years. Love your work!
I like this idea.
What is more important when it comes to volatility? Do u look at the implied volatility or the IV of each strike price?
Could you go a little more in depth of rolling the call option to a future date. Do you basically have to pay the premium again on the same 100 shares or 1 call contract? No sure how it works. Love your channel!
Would love to see a video on how to actually buy stocks. I have zero experience on apps, agents or banks to buy stocks 😅.
We do have general course on the app if that's something you're interested in. Let me speak to my team.
@@RealEstateTaxTips very interested, looking forward to hear more about it!
Wouldn't you need to ensure that the total amount you would pay for the stock would be lower than that particular yr's contribution limit ( assuming you had no additional room )
Would you mind clarifying your question?
If you are buying the DITM call, the money you use for investment should be whatever you have in your TFSA.
If you end up exercising the option to purchase the stock for long-term in your TFSA, yes, you should have that amount of cash in your TFSA. The amount of cash available in your TFSA is determined by 1) your contribution and 2) the investment return that you have from your previous contribution.
Not sure if I answer your question correctly.
@@RealEstateTaxTips I'll try to clarify, this concept is very new to me. Let's say you had no contribution room from the previous yr's and only that current years allowable amount ( $6,000 ) if you had no cash in your tfsa and didn't want to sell any stocks but wanted to try this DITM method wouldn't you still need to make sure the total amount you might have to pay for the stock would be within that yr's allowable amount? hope that made some sense, I clearly don't fully understand the DITM method, lol
Is this advisable to do call option trading under TFSA? Aren’t we suppose to use TFSA for only long term investment rather short term trading? Please advise. Thanks
The purchase of call option in your TFSA account can still be long-term. The example used in the video has the expiry of 2 years away.
Why don't you emphasize the big risk that you could lose you 100% money?
@@tonyjiang4991 if you watch the video, we did mention the possible scenario when market goes against you.
A prudent investor would learn new strategy, understand the risks involved of each investment strategy, before making the investment decision. After all, you're the guardian of your own money. A 15 min TH-cam video should not be the *only* research a prudent investor should do.
No investment vehicles are guaranteed to be a success, even keeping cash in your bank account has no guarantee (given that the government keeps printing money and the value of our dollar is declining).
@@RealEstateTaxTips Just discovered your channel. This is an awesome strategy and you covered it well. One of the best tips I've heard of regarding TFSA's in the past 5 years. Love your work!
@@stevenrobidas glad it was useful.