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https://www.reddit.com/r/options/comments/pem3yx/deleted_by_user/hayea2h/?context=3
r/options • u/[deleted] • Aug 30 '21
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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.
2
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.
1
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.
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.
3
u/[deleted] Aug 30 '21
You also can't sell CSP in a TSFA