Recent content by screw_jack

Options are insurance policies. When you sell them, you are hoping the premiums you are collecting will be enough to outstrip the loss you will inevitably incur when a disaster strikes. On the other hand, no serious option trader would sell options blindly without any sort of hedge. There are...

In response to the OP, a deep ITM option can be used to free up your capital, but this is probably more useful for non-marginable stocks or in some other special situations.

I agree, the % bid/ask spread is irrelevant in this case. And usually it's much cheaper to trade the equivalent synthetics position rather than a deep ITM option.

Capital gain is not taxable by the Canadian government as long as you are not deemed to be a Canadian tax residence. Since you don't live here, you won't be taxed. (As a side note you can be a Canadian citizen and not a tax residence if you fulfil certain criteria.) And it also seems they have...