TFSA

trbodeez

What do you mean you can't sell puts in a retirement account? I sell puts in my TFSA all the time

vinkulafu

WS allows CSPs on RRSP and TFSA.

Independent_Nail_482

This is clutch. Been running this exact setup in my TFSA for months now and you're right about the ITM call spreads being way tighter than the put side, especially on anything that's not mega-cap. Currently eyeing some tech names around earnings - the IV bump makes that time value pop even more. Just gotta watch out for early assignment risk on the calls when you're deep ITM, but most brokers will give you a heads up before ex-div dates anyway. Would definitely be interested in that calculator if you end up sharing it.

zzozozoz

What happened to the guy that bought $104k in calls on SPCE in a TFSA

hinault81

But nobody KNOWS it will happen, it's just guessing. I started investing in 2012-ish, and even then, post 2008, people were saying gains are only temporary, the issues in the economy are still there. Thankfully I was too dumb to pay attention to those warnings, so I just kept investing each 2 week paycheque. There's pretty well been bubble talk non-stop since I started investing, yet in that time I started with $30k, and grew a 7 figure retirement portfolio since, so sitting on the sidelines would've been the worst thing to do. You can take your money out of the stock market. You can sell some stocks and pay off some debt/mortgage. You can rebalance if you hold a stock/bond portfolio. You don't need someone to do that for you. But you just don't know right. Post covid, a lot of personal finance (canadian) sub-reddits I go on people were talking about selling stocks and paying down the mortgage because mortgage rates were going from like 1.5% to 5%+. But if that were say 2021, that same money would be up 80% vs the 3.5% difference on their mortgage. You just don't know. But I'm even entertaining this a little right now; as our investments have grown a lot post covid, and I can remove money no penalty/tax free (TFSA), do I just sell some and clear off some mortgage debt? If we clear off our mortgage in the next 4-5 years it would free up a ton of cashflow month to month. And market drops, like covid, they come in faster than you can prepare. In hindsight it's clear as day, as is 2008, but during, I had no way of knowing. And our stocks dropped \~30%, all you can really do is be confident what you hold isn't junk, and ride it out. As short as it looks in hindsight, and seeing where things are now, covid market drop looks like a blip, but for me it hurt at the time. Our investments dropped about the equivalent of 4 years of my wife working. That hit home for me, thinking if you go back 2 weeks and sell, it would be the equivalent of my wife having 4 years off work.

Lahdeedah1980

Fellow Canadian here, do you swing trade the 2X ETFs from your TFSA / RRSP? Have CRA knocked on your door? Did you max out contribution rooms to both accts? And how is it that you don't have a job? Genuinely curious, thanks.

zzozozoz

Us. You probably got ripped on theta burn and paid high premium Even if you sell for a profit the CRA is going to make you pay the normal tax rate, you won't shielded from taxes and won't be able to claim it as capital gains Don't trade options in a TFSA

Dread_pirate-Robert

Damn, how do I get my TFSA to 500k like you ?

Dazzlingsunshine89

Aren’t you worried about the CRA investigating your TFSA for this kind of trading and massive gains?

Comfortable_Leg_3494

I mean you have a nearly 500k TFSA on 137k of deposits. You’re still up 350k tax-free so I’d just take this as a lesson

vinkulafu

CRA, this guy right has over contributions in his TFSA. Yes, yes, he has over $109K. 😀

PeanutButter91

Noticed my TRUL shares have been delisted. Any idea when brokers should have them converted to TRLV? Had a mini stroke when I saw my TFSA balance lol.

Snoo-30361

I was kinda joking but the reality is a $500k TFSA is like a 99% percentile balance so it's unfortunate but ur still killing it. Congrats btw

DismalScreen6290

I'm an idiot. I made over 10k last year gambling and thought "why not play with profits" rather than "hey why not use this to further grow my TFSA". I've learned my lesson and not touching options again in TFSA

BiggieMoe01

You were done. You were there. You could’ve just put that 1.1M in a boring ETF that gives you between 5 and 10% per year and have between $50k and $100k of passive income. Could’ve used that money to invest in an education fund or whatever for your baby, or have a stay at home parent during your baby’s early years. You lost half of your TFSA’s contribution room. Use it as a lesson.

Blankpaper__

What is TFSA. ?

skilas

470k in your TFSA is still amazing.

DePoots

Pretty sure you only get taxed on withdrawals on your RRSP This was in a TFSA and unregistered. Unregistered portion is taxable, so it will lower the taxes owed this year

JuicyJohnny69

You're up bigly, losses happen. I had no options, just full ported MUU and my TFSA got obliterated the same -36% as you since last week. I'm still up / beating the index ytd. The loss may seem big now but if you get even close to the same amount of profits being locked in over time you will compound insanely. Congrats on the baby.

Snoo-30361

500k TFSA is still killing it. Low key humble brag post.

GiraffeBaron

I shifted everything out of my TFSA into RRSP, FHSA, RESP. Only left the pure regardium call options in my gambling account. LFG

tragedy_strikes

That's what you get for putting single stocks in your TFSA.

Desperate-Oil-5077

Given how few people actually max out their TFSAs—and how rare it is to see an account north of $400K—having a $1M TFSA is basically an open invitation for a CRA audit. You’re virtually guaranteed to hear from them.

MindYourOpSec

Unfortunately the CRA has broad discretion to declare you a “professional trader” and subject your TFSA to capital gains. I speak from experience lol

Financial-Demand3087

Buying Exchange Income Corp at 27$ during covid. It’s about $122 now and I think the yield was about 6% when I started. My late Uncle raved about it before that so I thought why not? It’s in everything I have from non reg to TFSA and RRSP.

mikeEliase30

Actually that was just my rrsp. My TFSA was down another 6300 and back only 1000

Brodieischeese

Just cleared all my debt (25k) at 19, stop me from buying long dated call options on MSTR with leverage in my TFSA.

dreamkanteen

Im honestly not sure. For the past 2+ years I've been obsessively checking my portfolio every day. I sold off my RKLB and feel a huge weight off my shoulders. I have since bought VEQT, some blue chip Canadian dividend stocks, and a position in MDA and CTM. I haven't checked my overall balance in a while. Im gonna see if I can go until the end of summer without checking. Its all in my TFSA so I don't have room to DCA anyways.

zeolus123

We'll see haha, I have about $1500 in dividend cash in my TFSA, might try it and see how it goes.. Ultimately I'd have no intention holding a live hand grenade long term lol.

FlightAlternative836

Yeah this guy doesn’t know what he’s talking about. The only thing you’re not allowed to do in a TFSA is day trade

FlightAlternative836

You are allowed to buy American stocks and stocks that pay a dividend in a TFSA. You are not allowed to day trade. If OP is holding this for a 1-2+ weeks they are fine

hinault81

I have a few different portfolios, well more like 9. RRSP x 2, TFSA x 2, non registered x 2, spousal rrsp, kids resp, my wife's tfsa. Wife's tfsa, one of my tfsas, spousal rrsp, are all index only, no timing. Both my rrsp are 60% index, some bonds, rest individual. And both my non reg are only individual stocks. It's a little tricky to directly compare because it depends when the money went in, how much went in at one time. Some accounts are only 5 years old, others over 15. Plus ive taken money out of 2 accounts. And some index and some stock only gets money once or twice a year. And two of my index get buys every 2 weeks. My two best accounts are my oldest straight index and oldest non reg which only holds brk.b, which i bought cheap. My third is my non reg with buy and hold, ive never sold (because cap gains), and it's got some solid canadian banks. But my mixed stock/index has done worse than my straight index. And like you say, I would've just been better to hold the index. It's a couple things though, not just individual stock, but I find myself timing things a bit in those accounts, like adding more bonds, selling early, vs my index which I just hold. It's deceiving though. I really havent had many actual losses in my investing. I had two total loss stocks, but they were small amounts. And ive had only a handful ive lost money (because youre not forced to sell when down). And I dont know how many winners.And I'll be the first to say that ive had a ton of luck, Im no star investor or anything. And ive known from the start that indexing will almost always win, AND im not the 10% or whatever who will beat an index and had no illusions of it. I just enjoy it. But if I look over a decade or 15 years and there's a ton of profit, just tons of stuff and good amounts: $15k on xom, apple, $25k on Google, mu, $50k with brk, bns, ry, etc etc. (Of course plenty that didnt do much). You FEEL you're doing well, but you look back over a decade and I didnt beat the s&p. And part of that is i think it's deceptive with the wins, and the timing. You have a winner and hang on to it but it's flat for 2 years, meanwhile the index chugs along. Or you have a winner and sell but it keeps going up for years after. Ive slowly moved more to an index. Not because I ever thought id beat it and im admitting defeat so much. But I find my least stressful holdings are my wife's index. We buy 2x a year, and never look at it. I couldnt tell you how it's doing. It's not connected to my phone. I dont even think about it, and neither does she. And I think it's the true idea of passive indexing.

Jayu777

Love its in TFSA. Can't even claim loss lol

JDawgproductions

He said Canadian money so no such thing as a Roth IRA, we do have TFSA’s though (tax-free savings account) and you have a certain contribution limit per year and you pay 0 taxes on it.

micbm

In Canada there’s an account called TFSA that you don’t pay taxes on any realized gain. There are limits on how to use this account so I don’t know if this was his case, but if it was that was a master play.

ShawarmaOrigins

He can't. It's a TFSA. losses are non deductible.

905financialplanner

Look on the bright side, at least you’ll regain the TFSA contribution room you just blew up gambling in about a decade.

ConcealingFate

So in Canada, if he's trading in an unregistered account, he's getting taxed on capital gains. His ceiling for a TFSA would depend on when he was 18 and then his ceiling would go up every year, unless he was 18 before 2009 because that's when the TFSA became available. RRSP ceiling is based off your income for the past year. Which is either 18% or whatever the CRA determines to be the maximum for that year. The TFSA allows you to basically put in taxed money and take it out tax-free. RRSP lowers your taxable income so you end up with a tax return that you can invest again.

ConcealingFate

He could just park the gains in his TFSA, RRSP, and the rest in an unregistered account with an ETF that pays dividends.

PMac321

Was this in a TFSA, or a regular trading account?

Franc000

TFSA accounts are tax free savings account, meaning any gains in them are tax free. With the little exception that it can't be used for short term things, like trading. It can't be also things like dividend gains, and I think it can be American stocks, although I have heard conflicting information about that last one. In other words, there is a lot of exceptions and rules, and if you break them then you will be surprised by having to pay full taxes on it, plus any interest as if you did owe the CRA money. Let's just say that buying short term calls on a stock that just IPO and posting about it on Wall Street bets raises *a lot* of flags for the CRA concerning a TFSA account. Hopefully for OP they miss it. But they won't if he makes bank.

Powerful-Apricot7624

My man really put 100k CAD in TFSA on space calls and now flexing completed status like it's achievement unlocked

IronicallyCanadian

Tax free gains cause it's his TFSA too lmao

Franc000

Calls of an American company on IPO in a TFSA account? Bold move. Let's hope the CRA doesn't pay too much attention...

BullyMog

You’re dumb lol. First, these were probably 6 months out, long term options. Second, you’re allowed to buy and sell options In a TFSA as long as you aren’t day trading.

bornrussian

Also, youre playing short term options in TFSA. You will also gonna get audited by CRA and they will apply an income tax lol. Double fucked

geggleto

please tell me this is in your TFSA

HoneydewStriking8283

Hello all, I'm an investment noob. Kind of an idiot, really. After getting into an union job, Im FINALLY getting my life together and saving money for the long run. I recently got into Financial Audit and some of the bullying (for a lack of a better term) Caleb Hammer does to people got to me and motivated me into building an emergency and additional payments into my RRSP retirement savings account. First all, I am Canadian. I've opened up a TFSA and Im currently using low risk bond/dividend portfolios managed by Vanguard on WealthSimple. I was talking to a friend and she's been investing into the VFV. Basically, what Im finally getting to asking, is do you lump all your money into a singular ETF (ie VFV) or do you diversify your ETF investments into multiple different ETFs in different sectors? Also, if you do diversify, do you do it equally across them all, or do you favour a consistent lower yield but less risky ETF?

piponwa

CRA is gonna come after you bro. >Although a Tax-Free Savings Account generally allows investment income to grow tax free, the Canada Revenue Agency has historically maintained that certain trading activity within a TFSA may be recharacterized as carrying on a business, which could result in income being taxed under the Income Tax Act. This risk has been highlighted in CRA guidance and administrative interpretations, particularly when trading patterns resemble commercial activity rather than passive investing. >CRA has previously outlined factors that may indicate a business-like trading activity, including: >High frequency trades or short holding periods for securities >Significant time spent monitoring, researching, or executing trades >Sophisticated strategies and specialized knowledge, including heavy options use >Focus on short-term gains rather than long-term investment objectives >Consistency and systemization, such as routine or repeated patterns of buying and selling https://www.questrade.com/learning/tfsa-options-trading

highnessy

Doing it on the TFSA is crazy work. But hey, monopoly monies like they said. 😂

GhostlyAce_

in his TFSA lmaooooo

Texas03

Ooof TFSA That Fucking Sucks Ass

witchesbrewm

If you use all your contribution room, let say you put 109k in your TFSA (109k is the max), and proceed to lose everything. You will never have that contribution room back.

jorcon74

This is through a TFSA so you normally wouldn’t declare it and be taxed, but if the CRA comes along later and reclassify it then you get hit penalties and interest for not declaring it!

CaiserCal

Wait wtf you can short an TFSA account?!?!?! I was not aware of this!!! Congrats!

LumbyCastle41

Clearly you don't understand the TFSA. 

Alphacuremomz

If anything he’s gonna make his TFSA max contribution insanely big. A dude in the US did this with the original roth IRA account and made his contribution limit go from a few thousand to over 5 million dollars and after they patched it. TFSA hasn’t been patched lol

LukaCurry

Wait... so you are trading USD equities and options under your CAD TFSA ? You didn't even bother opening a USD TFSA so your trades can be washed ? 5 Star Regard General right here.

phlegmcloud

Max out your TFSA and put it into something like VFV or XEQT. Sit back and watch your money double every 7-10 years.

kooliocole

In a TFSA, lol good luck explaining that one to the CRA

DismalScreen6290

Damn. In the TFSA too

MrDanduff

In a TFSA as well wtf ☠️

pysapien

In TFSA on top of that, it’s the cherry on the cake

blazkoblaz

It’s actually 100% of the profits you make goes to the taxes, if found abusing the TFSA.  But how would this be in abuse of the tfsa tho?

SaratogaSquirrelBait

Is TFSA like some Temu Canadian Tesla?

ZacTheBlob

If the CRA sees and unemployed retard tripling their cash in one trade, you can bet your ass they will audit. I was audited for far less. If there's even a chance for CRA to be able to tax some of that money, they will. TFSA was intended for long term investing. Buying 2 weeks to expiry calls isn't an investment. It's a speculative trade. He will 100% be taxed as a trader.

MunBRO

Interest and gains in a TFSA dont count towards contribution room in canada you regard the same as losses dont magically give you more room

RepairSuccessful5108

They don’t take it away, they just charge tax on it. They might not even do that, it’s mostly for people day trading in a TFSA

kepteasy

Lol These threads are the best 👌 Some of the memes and replies are hilarious haha A call for June 18th? In a Canadian TFSA? On SPCE today after it dumped? Hahaha 😆 😂 I cant tell if its a farce post just for comedy or a real trade. Priceless.

Icy-Faithlessness922

Buying the dip on a 40% dilution crash with a 2-week expiration is wild. If SPCE finds a bottom here and IV keeps pumping, this is an absolute masterclass. If it doesn't, that’s a lifetime of TFSA contribution room gone in 14 days. True peak degeneracy. Godspeed.

Potential_Jello6520

My TFSA is 500k from leaps,   the issue here is the short holding period and if OP has been doing this before then it most certainly will raise a red flag.

HealthyArt1751

don’t u have to pay the exchange rate fee on WS 💀 SPCE is TFSA is… something

durdydude

How do u trade options in ur TFSA???? Is this fake?

mattc1305

The best part is if your right, your TFSA gets flagged for day trading, the status gets revoked and all of a sudden your paying back taxes on everything you’ve ever made with it

iceRiot

In his TFSA no less. The absolutely fucking balls

paizuribart

You also should not put risky volatile stocks in a TFSA. Should you end up selling at a loss ever you cannot use that capital loss as a deduction against any capital gains.

Spare-Pace4283

Using TFSA on calls. Using TFSA on calls on memes. Well no one can say you’re not in the right sub.

Vegetable-Big3545

In a TFSA is fucking stupid lol

Cristalboy

Not only that but he’s doing it in his TFSA absolute degen

amoral_ponder

HAHAHA in a TFSA bro. Hahaha.

Malipiki

He didn't sell calls, he bought calls. Perfectly fine in a TFSA. It's the bet of a lifetime. 

FoundationalSquats

If he loses, it's gone forever. If he wins, the CRA takes it away for abuse of TFSA and it's gone forever.

neal_73

That's even in TFSA!! Bro got balls of steel. Nice one OP 👏

AcoutsticNo1

TFSA truly regarded

Cest-la-vies

Don't know why I thought he sold it for that much and profited but Holy shit, he's longing calls $100k CAD in TFSA. That is some regarded shit.

SapientApe_

I thought you weren't supposed to do options on TFSA?

Potential_Jello6520

No tax loss in a TFSA, it's just gone 

0DTEKing

Oouf😂, why destroy your TFSA🤔

wet_faart

Omg in you TFSA too. Someone give this guy a medal please

SuperTankMan8964

Sir, you just captured yourself in 4k trading options in TFSA, CRA is going after your ass bud

Quick_Lawfulness7501

I have 6 small contracts in the TFSA as well, see you on the moon

Quick-Mirror3791

That too in TFSA

s1n0d3utscht3k

moreover, annual TFSA room is a one-time contribution allowance not a permanent cap or something so homie is not just risking 105k but 105k of tax-free capital gains FOR LIFE he loses that and for rest of his life he’s paying capital gains tax on additional 105k that he didn’t have to be

Ok-West5257

Bro not in the TFSA too…. 😭

cantbuythemall

In your TFSA too of all places. Good luck.

motherseffinjones

You’re doing this out of you’re TFSA? Ya crazy work lol

Level-Set5770

I didn't even realize they let you trade options in a TFSA. The idea is so regarded it never even crossed my mind.

showholes

In fact, whatever you withdraw from your TFSA is added back to your contribution room the following year. I wouldn't expect WSB to know this, since understanding it generally requires experiencing gains first.

ABigAmount

Once the CRA gets done with you day trading in your TFSA that's going to buy you a Honda Civic at best.

staunch_character

You absolutely can buy options in your TFSA & RRSP trading accounts. You can’t use margin. That’s all.