Episode 125: Options Trading – Selling Covered Call Options To Grow Your Canadian Investment Portfolio

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Are you leaving easy-safe money on the table by letting your stocks sit idle in your portfolio?

When the market’s unpredictable swings have you wondering if there’s a better way to capitalize on your investments, selling covered calls can offer a lucrative and relatively safe income stream you may be overlooking. 

Rather than watching your portfolio’s value bounce around, imagine renting out your shares the same way you’d rent out a property, collecting premiums while still maintaining a stake in the stocks you believe in for the long term.

More importantly, as you strive to build wealth responsibly, managing taxes and minimizing risk become top priorities. In this episode, you’ll gain insights into how covered calls can help you smooth out the turbulence in your investment returns, whether you’re preparing for early retirement or seeking to optimize the cash flow from assets you already own.

• Learn a simple yet powerful way to generate consistent monthly income from your existing shares
• Discover tax-friendly strategies for handling premium income in both personal and corporate accounts
• Gain the confidence to navigate call option trades without the high-stakes risk often associated with options trading

Press play now to learn exactly how covered calls can earn you extra income from the stocks you already own.

Resources:

• Ready to take a deep dive and learn how to generate personal tax free cash flow from your corporation? Enroll in our FREE masterclass here. 
• Book a Discovery Call with Kyle to review your corporate (or personal) wealth strategy to help you overcome your current struggle and take the next step in your Canadian Wealth Building Journey!
• Dig into our Ultimate Investment Book List
• Follow/Connect with us on social media for daily posts and conversations about business, finance, and investment on LinkedIn, Instagram, Facebook [Kyle’s Profile, Our Business Page], TikTok and TwitterX.
• Looking for a new mortgage, renewal, refinance, or HELOC? Reach out to Jon to share some options.

Calling All Canadian Incorporated Business Owners & Investors:

Consider reaching out to Kyle if you’ve been…

• …taking a salary with a goal of stuffing RRSPs;
• …investing inside your corporation without a passive income tax minimization strategy;
• …letting a large sum of liquid assets sit in low interest earning savings accounts;
• …investing corporate dollars into GICs, dividend stocks/funds, or other investments attracting cordporate passive income taxes at greater than 50%; or,
• …wondering whether your current corporate wealth management strategy is optimal for your specific situation.

Achieving financial independence retire early (FIRE) requires smart planning, especially when it comes to growing your net worth and generating passive income with a focus on the sequence of returns of your Canadian investment portfolio. For business owners, navigating the complexities of corporate structures, tax implications, and investment strategies can feel overwhelming. From understanding capital gains rules to leveraging life insurance for wealth optimization, the right approach can transform your financial future. By aligning your strategy with tax-efficient tools, you can unlock the full potential of your business and investments, ensuring sustainable growth and long-term independence.

Transcript:

Jon Orr: All right, let’s chat about call options and option trading. Specifically, when we think about growing our wealth, we think about different strategies. That’s what we do here on the podcast is talk about different strategies to add to your wealth creation and thinking about how you’re going to get there and then what are some of the best options? I think we always ask questions like that. Am I missing something or am I not taking this road or should I take this road? And we always wonder about the road not taken or the roads to take.

you know, one of the tools we’ve used along our pathway is option trading on the stock market. We also just released a number of episodes. if you want to go back in the history here, to some previous episodes about early retirement and specifically talking about the math behind early retirement, we talk a lot about managing our portfolio and those four episodes around, around early retirement, specifically on the stock market and how to manage the, those.

You know your portfolio and one of the one of the tools that we’ve been using on our portfolio is option trading and specifically in this this episode we want to talk about call options and give you some insights on Whether you want to add this as a small strategy? And I think I think you might be surprised the way we are gonna talk about call options and the way that other people talk about call options Because like Kyle, you know people are like, those are the risky things

You know, call options, that’s the most risky you can get. And you know what? You can be right, but there are two sides to options. So let’s get into like what options are and how do we want to think about them? And then eventually let’s talk about the tax implications of owning or holding or writing call options and then taking premium on them. Because that’s specifically what we’re going to kind of chat about here.

Kyle Pearce: Yeah, for sure, for sure. So today we’re going to focus, like you said, we’re going to focus on one type of option. There are two types. There are puts and calls. But today we’re going to talk about, and this is sort of like why we’re starting with call options and why we’re starting with what we call covered call options is because this is the easiest place to start. And it’s also

really safe. It’s safe enough that actually in your registered accounts, you can actually use this strategy. Whereas sometimes registered accounts actually have restrictions on what you can do in those accounts. So a call option and specifically when we sell a covered call, okay, this is the important piece. We’re not buying calls here. We are actually the sellers of these calls. What you’re doing is you’re essentially giving someone the option

to take your stock at a specific price over a specific duration of time. So for our real estate friends, everybody knows, when we got into options, what really resonated with me was it was a way that I could rent out my shares, my stock. And ultimately, at the end of the day, a covered call is like a bit of a rent to own.

strategy, right? Where like you’re going to you buy a home, you give someone the opportunity to rent this home. And they also have the option to buy the home from you for a specific price after a specific period of time. So if like we just exactly

Jon Orr: It’s like a contract you’ve written up and that’s right. So it’s like you’re locked into like this, if I buy this house and I’m gonna sell you this house down the road in the future period of time for this exact price. And we both agree that no matter what happens, that’s what we’re going to do. And you have the right to exercise that option when the time comes. And that’s, think maybe the slight nuance we wanna add here in the rent to own kind of analogy is that say the time comes down the road.

like two years down the road, if that’s when our contract expires on our rent to own and on my home here, when that gets there, our renter who’s been paying us rent all this time, they get there and they’re like, you know what, I don’t wanna buy this home yet. Let’s just let the contract expire and we’re like, all right, that’s fine. We will keep owning this house and then we can go to someone else and rent it to that person over there for a new price and a new date down the road. But let’s say we get to that spot

Kyle Pearce: Yeah, change my mind.

Jon Orr: down the road and the renters like, hey, I looked at the prices of homes right now. And this home is a lot more. Yeah, this this home is way higher than what I agreed to buy it at. So I’m going to exercise my option. I’m going to take I’m going to hold this contract true. John and Kyle, I’m buying this house for you at this at the agreed upon value we decided years ago. And then we have to then honor that contract.

Kyle Pearce: through this. Yeah.

Jon Orr: and sell the house to them at that, even though we’re like, you know, the house prices are up. So we have to stick to that as homeowners. This same scenario is exactly what happens when you sell a covered call option on say, shares you own of a particular equity.

Kyle Pearce: Yeah, I love it. I love it. It’s a great analogy. The same is true for a lease. Like a dealership is essentially giving you the option. You’re going to rent this car from me for x number of months, years, whatever. And then at the end, you could buy this car for this price. And actually, the way it worked out during COVID, for me, I had a lease. It was a really cheap lease. it came to the time where my lease was up. And I looked around, and I was like,

this same truck is worth 15,000 more than what I will pay to buy this thing out. So I bought it, I exercised this option. So the same is happening here with stocks. And when we sell a covered call, why they call it that, they say it’s a covered call is because really there’s no risk for you in terms of losing anything except for potential upside. Like you said, there is some potential upside. Cause like if that stock goes to the moon,

then guess what if you agreed to sell it for X and it’s now worth X plus 100. Well, guess what you agreed to sell that covered call which meant you were renting the shares and you basically gave them the right to take those shares from you over the next three weeks. It could be three months. It could be five years. It could be whatever you want. You can sell this covered call and of course, if you get to the place where the covered call is expiring,

You know, this could be a week from now, a month from now, a year from now, right? You get to decide, right? What option you wanna sell and at what price. And then basically it goes to the market and the market tells you like, yeah, that’s worth it to me or it’s not. And what you’re actually earning off of this covered call is what we call premium. Now, for those who have listened to the podcast, you know, we love all kinds of insurance strategies. This option strategy,

Jon Orr: You said that. You said that.

Kyle Pearce: It’s like insurance. You’re basically selling to someone, you’re selling them for a premium, the opportunity for them to take the shares from you. Now, let’s think of it from the other side though. Like the person who’s buying this option, they have to, if they’re buying a call, they’re basically thinking that over a specific period of time that this stock is going to rise in value, right? Because the cost of this option, if they wanted to sell it back to the market,

is gonna go up in value. And it’s what they call like a leveraged bet for the buyer, but we’re gonna be the sellers. So we’re gonna be the insurance company, okay? And I’m happy to say it, like, you know, I’m a safe guy, right? So it’s like, I wanna be the guy that is here going, listen, I’ve got this stock and you can do this on ETFs, for example, that’s what we tend to do. We used to do it on stocks and guess what?

You know, we did all kinds of other calls, you know, our options strategies. We’ll get into that on a future episode. But now we’re more or less looking at this and saying, you know what, if we could get a certain amount of return on the stock, on the stock that we’re holding, if we can like make that premium, I actually don’t really care a whole lot about what the stock does, right? Like if it goes up, I’m not like, I’m not like heartbroken.

that I have to give it away because guess what? Usually, stocks come back down again and then there’s an opportunity to buy again. You might have to buy in higher again, but if I’m gonna use this covered call strategy, I’m not too concerned about that because then I’ll just go ahead and continue to rent out these shares. Like ultimately at the end of the day, we’re more interested in the premium, in the amount we can rent this for than its value. And I want you to pause for a second, especially our real estate friends.

The same is true when it comes to when you buy real estate, although you like it when the property value goes up. That’s like a bonus usually, right? We’re actually doing this for the cashflow. You’re doing this because you want someone to pay you each and every month for the ability to help you pay off a mortgage and of course put some cashflow in your pocket. The same is true here where we’re going, hey, the stock sitting here, I might as well rent it out.

And I get to decide what that rent is worth to me and at what price I’m OK with someone else taking those shares from me.

Jon Orr: sure, for sure. So it’s like, you already decided that those shares were something to own. You know, like you’re not you’re not running out here and buying shares, you know, just, you know, that you don’t care about or you’re, you know, you’re, you’re, you’re playing, you know, I’m going to use air quotes here playing the market. And these are, you want to think of this as like, I already have decided that these shares in this equity are, are worth it.

you know, and they’re sitting there and you’re like, it’s part of your portfolio. They’re going to go up over time and you’re probably betting on the length of the time in the market. It’s like, I buy shares on a regular basis or I’ve invested on a regular basis and in 20 years, my portfolio is going to be worth blank. While they’re sitting there, you could also be earning and do some calculations on earning that premium.

which goes into your portfolio. Like it’s money that goes back into your portfolio for you to buy more shares and use that as part of your strategies. Like for us for a while, we were like, and this is some of the goals in the systematic work that we were doing with this particular strategy is saying, what type of return do we want on our capital here? And can we get that with this option, the cover selling, covered call strategy? And I remember at the time, Kyle, we were like,

We would love to have 1 % per month, which is 12 % over the course of a year, right? So it’s like if I can, and that’s not even accounting for compounding during that time. So it’s like, if I could get 1 % during this month, we were doing, you know, monthly covered call options. So it’s like in a month, I’m going to set an expiration date for one month, and I’m going to look to see if I can get premium that is about 1 % of my share value. And if I’m okay with that, then I’m going to sell that covered call option. And someone might pick me up on that.

And then if the price goes up during that time, I lose, like my shares are taken away from me if they exercise the call, but I got 1 % on my money that month, which is like, sounds pretty great if I can do that month to month.

Kyle Pearce: Yeah. And if you sold above the price, if let’s say it went up $1, you actually made money there too, because you sold it for a higher price than what it was worth at the time when you sold the option. So you get to keep the premium. And then they take your stock. pay you the price they said they’d pay you. And now you have one of two options you could do. You could just sit on the sidelines and wait for the stock to maybe pull back, put it into something else, or you could buy right back in and go,

Jon Orr: That’s right. Come back down,

Kyle Pearce: I’m selling the next covered call on this.

Jon Orr: Right, right. Yeah, like you already have these these shares and it’s so I remember hearing a strategy or a recommendation from another trusted person who does this basically saying if you have 100 shares, so here’s that’s the that’s the caveat here you can sell sell calls with you have 100 shares of of say a stock and say if you have 100 shares sitting in your portfolio and you are not selling covered calls you’re missing the boat. You’re missing some some some

you know, income that can come into your portfolio. And that’s what we were doing. We were doing that for a long time. It’s still part of our strategy to move forward on using option strategy. So now let’s flip to the other side. You did bring up buying calls. And when you hear most people talk about call options, they’re probably talking about buying calls, which is like, in a way you’re hinting that this is the risky side of things.

Kyle Pearce: Yeah, like if I say GameStop and options, we’re talking about buying calls.

Jon Orr: Yeah. People are running on, you know, think, you know, people are running on the fact that I’m like, I don’t have to buy 100 shares or I don’t have to buy the full price of a share to get part of that action. Right? So they’re buying the premium. So it’s like when you buy a covered call, you’re saying like what you said, Kyle, I think the value is going to go up. Therefore, I’m going to buy the covered call, which means you pay up front the premium.

that premium immediately goes to the seller of that covered call. And so, and the premium is not the price of the stock, right? The premium is like the rent. And so a lot of times you’re paying a lot less money to get involved and get into the movement of that stock. And so what happens though, is that if it goes up, you make a lot of money on say that’s investment on that stock.

you know, depending on the covered call, because you’re going to sell, you’re going to exercise your options, or you can cash out that that option at the time. And this is how people were trying, you know, are trying to make a lot of money selling covered or buying covered calls or buying calls. So there’s like that side, but that’s the risky side, because I think what’s the stat Kyle on like options expiring worthless. So it’s like, it’s like high, right? It’s like, so it’s like, you’re betting on this thing. It’s like, it’s like, it’s like a lottery in a way. It’s like, if it goes down,

past your strike price, you’re not gonna exercise your option. Like if I’m the buyer, if I’m the buyer, I’m gonna be like, why would I exercise this? I’m gonna get these shares less than what I paid for and then I have to pay the full price of it. So it’s like, I don’t wanna do that. So I just let it expire for sure. If you’re seller.

Kyle Pearce: Yeah. I would love it if someone did that. If they were like, want to buy this for a dollar more than what I can buy it for on the stock market right now. So yeah, it’s just not going to happen.

Jon Orr: Yeah. So a lot of these expire worthless and that’s the risk people take. It’s like I have to pay the premium upfront, which isn’t the full price of the share, but it could expire worthless. Like if the stock goes down, I just paid money and I don’t get anything out of it, right? And so that’s why the selling side actually is in your favor if you already own the shares and you’re okay with limiting your upside potential. So if you’re just strategizing around what is the

What is the, this is why we were like, okay, with if I can earn 1 % per month on this money that’s valued here in the, in the stock, it will be a winner for us. And that was the way we defined that part of our portfolio. If that’s not okay with you and you’re just hoping, you know, for more than 12 % or more than whatever this agreed upon a value that you want to strategize around, then you might want to just set this ride, ride and go because that’s, that’s what you have to decide to do. So we want to bring that up to see like,

we’re talking about selling covered calls, not buying calls here in this particular strategy for our income. Now, if I’m selling covered calls and I take in the premium, then as soon as that contract is, say, set, so someone takes that contract up with you, you get the premium in your account immediately. Like it’s there, boom. Like you’ve got cash now sitting in your bank account, your trading account.

What that is though is that is income, right? Like you’re taking that as income. And then what we want to think about is, okay, let’s say you do that on a regular basis or you do that monthly or whatever you do. Maybe you just maybe you don’t do it regularly, but you do it sometimes. And you’re taking that income from the premium.

tax time, like, how is that treated? Like, let’s talk about that, Kyle, because if I do make this part of my portfolio, I do have shares sitting in my registered accounts or my non registered accounts, and I sell covered calls on them. And I do say make 12%. How do I treat that 12 %? How does the CRA treat that 12 %? Is that something that I need to consider? Because that’s what we want to, what we always talk about here is let’s grow the pile, but let’s protect the pile based off of taxes as well.

Kyle Pearce: Yeah. Yeah, 100%. Yeah. So like if we talk like, you know, from a taxation perspective, and we think about, let’s say, registered accounts where, you know, there is no tax, like you don’t have to worry about tax there. RRSP, tax free savings. Yeah, exactly. You’re gonna pay on the way out for your RRSP. But you know, I could I could do this covered call strategy routinely, and and not have to worry about paying anything in this particular tax year unless I take some money out. So it’s actually a really nice income strategy. Now,

Jon Orr: No. Well, deferring RSPs.

Kyle Pearce: If it isn’t an unregistered account or if it is in like a corporate account, because there’s a lot of our friends that listen to this podcast. We talk a lot about those who are incorporated and they might have trading accounts. And oftentimes what you’ll do in unregistered accounts in many cases is we go, listen, you want to buy like capital gain assets. Like you want to buy, you know, things that are going to appreciate in value.

because the tax burden is going to be less than, taking it as income, right? Like, dividends are going to be taxed as income. And one thing that we can think about is that typically, now here’s the tough part, is that there is some nuance to it. But typically, the options premium is considered capital gain typically. Now, when we talk about our business owner friends, OK, business owner friends, you’ve got sort of like three buckets to worry about. Like, on a personal side, it’s like, is it income?

or is it a capital gain? Those are the two sort of buckets you’re looking at. Capital gain is better than taking it as income unless you’re in a really, really low tax bracket. And then taking it as income wouldn’t be as much of a bother. But if you are in a higher tax bracket or if you are doing this inside of a trading account inside your corporation, thinking about is this like passive income? Is it active income?

Some want to argue that it’s active income because you’re actively trading. And if you’re considered an active trader, then potentially it could be considered active income. However, from all the research we’ve done and all of the digging we’ve done, typically what we see people claiming it is as a capital gain. So this is something that’s important to note is like if I buy an ETF and I just hold it for 20 years,

I’m not going to trigger any capital gains at all over those 20 years, which is good. Like that’s a good thing. But the part that you miss out on along that trip is opportunities to sell when maybe the market is really hot and buy when maybe the market has cooled off a little bit. Right. So doing a little bit of buying and selling along the way, this option strategy can kind of almost force it on you in a way. Right. Like if someone takes your shares, they are making you sell your shares, right? So you will trigger a capital gain on those, on that gain that you’ve had depending on when you bought the stock and how much it’s grown by. And it’s likely that those option premiums are going to be considered capital gains as well, which essentially is not nearly as bad as considering it as passive income inside the corporate structure. there is some. positive to that to that strategy, even if you’re doing this inside of your corporate trading account.

Jon Orr: Mm hmm. So I was just got to this picture of, know, like when you think about if you’re thinking about swing trading and trading and going like forcing you to sell those shares along the way is like forcing you to take those profits when you can. So setting your strike price at say some of these upper levels in the ranges of where you think this price might be a nice strategy for you to be like forced you to sell some of those shares.

at that price and therefore wait for them to come back down by low, it’s so high, you know how this, this, this game sometimes works. now the downside here, Kyle, another downside, is that if you are a. I guess, set it and forget it type investor right now and be like, just dumped money in the S and P 500 index and, it’s my, my plan. That’s my strategy. Then this is a little bit more active for you.

if you’re going to be selling, let’s say monthly covered calls, you’re going to be wanting to be active here on a somewhat regular basis to kind of manage, and track a little bit. Now it’s not, it’s not overly intensive. we’ve done that. We’ve done this. It’s not like, Hey, I need to be on this either every single day or every single, like every, you know, multiple times a day. This is, this is not the scenario, which is a nice addition.

to a person whose portfolio is a set of forget it is to like look at a few times, maybe once a week even, I could be just monitoring and having a look to see if my covered call has been gone away or I can cash out. Because there’s nothing saying that you also don’t have to wait for that call to expire. You can end that contract yourself midway through.

And also kind of move on so there’s some nice strategies around that but the cover out of all of the you know in a way the four different call You are the option strategies between calls and put selling and buying I like the covered call strategy as a nice safe addition to an already existing, you know set and forget a portfolio

Kyle Pearce: 100%. And you know, there’s some things we will be talking in some future episodes about, you know, some ways we can layer on some other strategies as well. But keeping in mind the one, the one, I think caveat to any of this, as we go down the rabbit hole and as we learn more, I know I’m this person where it’s like, I learned something new and then I’m like, I really liked that. I want to learn everything about it. And then you learn that there’s like a way you can maybe do this even better.

And you can go way down this rabbit hole, but like you had said though, one of the biggest parts, and it’s probably the hardest parts too, is like whatever you’re gonna take on a strategy is trying to really get comfortable with what your goal is. And I still struggle to this every day. When I see a stock go through my, they call it the strike price on a covered call, and let’s say it takes a sharp rip, which actually happened yesterday.

You know, I’ve got a bunch of Bitcoin ETFs, you know, inside some of my trading accounts. So I’ve got it, I hold it. And you know, we’ve been floating around at like mid 90s, 90,000s. And you know, I had some covered calls on these shares. I’m a big fan of just premium is really all I need. And the day before, I would tell you all I care about is the premium. Guess what? Yesterday,

kind of cared about that upside, you know, a little bit like I was like, man, you know, like shoot, if I waited to sell that covered call until yesterday when it bumped up above a hundred thousand and then I sell the covered call, I could like sell it at that strike price by today, that call option would be worth a whole lot less because Bitcoin now went back down to like mid nineties again. So it was like a one day bump and it’s like, but again, you can’t

Jon Orr: Haha That’s why you gotta have rules.

Kyle Pearce: You can’t get mad at yourself for that because like how would I ever know that’s going to happen? Guess what? I’m still going to earn the premium that I agreed to take and they can still take those shares and if it expired yesterday they would have likely had taken my shares away for what you know the 95,000 or whatever it’s worth and you know they would have gotten it at that steep discount because of that call option. Here’s the crazy part. I still hold that call option today.

that person that bought it from me or bought it from me, I sold it to them. They had an opportunity, but because it wasn’t expiring, no one’s going to exercise it early. So they just let it ride. And guess what? Now we’re back to where we were two days ago. And here’s something else that’s happening in the background, which is a little more nuanced to it. But over time, every day that I have this call option out there to the world, that person is holding it. It’s like,

a hot potato for them. They hold the hot potato because the value of that thing, if let’s say the stock price stays exactly the same from now till expiry every day, the value of that call option keeps decaying. They call it decay because basically it’s it’s basically saying that there’s less and less chance that this particular call option is going to turn into something that’s actually profitable.

So he might have sold it or I should say I should I may have sold it for $100 and that person is holding this hot potato that he bought for $100 and if the strike, you know, if the stock value goes up that hundred is going to turn into a greater number. It’s going to go up with the stock price, which is what they want. What I want is really just for that hot potato to be worth less and less each and every day. So if that stock price stays exactly the same.

Or if it goes down sharply, the price of that hot potato goes way down. And I have the opportunity to buy it back. I don’t have to buy that one back from him either. I get to buy any one who’s willing to sell me their hot potato because they no longer want it. So I could have sold it for $100. And a day later, it might be worth $60 now. So I don’t have to hold this thing, or I don’t have to have this contract out.

Kyle Pearce: until expiry, I might decide, you know what, $40 profit in a day or two or whatever it was, that’s worth it to me. And like you had said, if you set certain targets for us, it’s 1 % per month, which is actually fairly easy to achieve just in premium, which puts us at about 12 % per year without considering any of the upside we might get even on stock that’s called away from us. We look at that and say, you know what, I like that.

I like that as the opportunity that we’re willing to earn some income. Because guess what? If the market takes a dump and all of a sudden it goes all the way down and it takes a 10%, 20 % dump, guess what? That hot potato is going to be worth close to nothing. And at least I got something while the market was at that place. Now I’m stuck and I may not want to sell covered calls while the market’s down because I don’t want to give up my shares at a loss or anything like that. But ultimately I was able to make something even though the market was maybe not working in our favor.

Jon Orr: The secret sauce here for us is basically thinking about some of the options. See what I did there? The options. Some of the options we have when we’re trying to create more of our pile, more of our portfolio. More knowledge is better than less knowledge. You wanna know what’s available to you and then what.

Kyle Pearce: Aha, I like that.

Jon Orr: you want to do is assess, you know, whether that strategy or whether that, you know, that move is a good addition to what you want based off the, you know, the lifestyle you want to achieve and lifestyle you want to live now. Like if being active here is not for you, then this isn’t for you, but at least you knew about it. And we’ve just kind of briefly touched on this. So you’re going to want to kind of take deeper dives into options trading.

You know, you can check out our book list on our website, CanadianWellSecrets.com board slash books. We’ve got a number of books there that we’ve been, you know, we’ve read, we’ve used, we put into action. Check that out for a deeper dive into options trading. That would be a great next move if we’ve kind of sparked an interest here for you. But the secret sauce for us is if we have our portfolios there in either of our registered accounts or unregistered accounts or even our business trading accounts and we’re not using

this particular strategy and then you might be missing out a little bit because it’s not that big of a stretch to add this to your already existing kind of moves for your portfolio growth.

Kyle Pearce: Yeah, and for those people who are doing most of their investing with, say, the big bank or whatever, you know, your typical platform, sometimes they’re not as easy to get started with options trading. So first off, I would recommend that you’re known. Don’t do any options trading until you have a lot of practice. Paper trading accounts are very helpful. But also you might consider looking at some of the different brokerages out there that

tend to be a little bit more friendly on that front. One that we use is interactive brokers. It’s very cheap as well. So buying and selling stock is very cheap. They have great exchange rates. If you’re going to be buying US equities and such, you can head to CanadianWealthSecrets.com forward slash interactive. If you’d like to take care of their bonus, note full disclosure, we’ll receive a little bit of a friend or referral bonus from that link as well.

But if you want to start with some money in your account, that’s one way to do it. you know, but there’s some other great ones out there, you know, think or swim, I think is another great one. And there’s a bunch of others that might be worth exploring. However, we’ve always stuck with interactive brokers as the tool that we use for our accounts. So once again, Canadian wealth secrets.com forward slash interactive. If you want to check them out.

Canadian Wealth Secrets is an informative podcast that digs into the intricacies of building a robust portfolio, maximizing dividend returns, the nuances of real estate investment, and the complexities of business finance, while offering expert advice on wealth management, navigating capital gains tax, and understanding the role of financial institutions in personal finance.

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