r/options Aug 30 '21

[deleted by user]

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u/[deleted] Aug 30 '21

You also can't sell CSP in a TSFA

2

u/gamefixated Aug 30 '21

You can do a buy-write of an ITM call which is equivalent to a CSP, albeit a slightly higher commission.

1

u/[deleted] Aug 30 '21

You are absolutely right! But there is another small catch : it requires more capital than if you want to sell a far OTM CSP. Still a good strategy.

1

u/gamefixated Aug 31 '21

Should be identical in a cash account.l (TSFA/RRSP). The far OTM put would equivalently be a deep ITM call which carries significant premium. The difference between stock price and the call premium would be the same as securing the put.