Stock Strategies – Page 5 – Canadian Money Talk

Video: Getting Cashflow from Options – Live Session January 5, 2023 – Part 2

I went through my process of getting #OptionsIncome by selling #PutOptions for #Cashflow.

The #CanadianMoneyTalk channel concentrates on #Canadianinvesting and #personalfinance in Canada.

Video: Getting Cashflow from Options – Live Session January 5, 2023 – Part 1

I went through my process of getting #OptionsIncome by selling #PutOptions for #Cashflow.

I use an options strategy to generate additional income, and buy cheap stocks. I sell Put options for immediate cash, and promise to buy the underlying stock at a price lower than it is today. I am selling insurance against the stock going down. If the stock goes up in price, the insurance (option) expires worthless in 6 weeks, which is my best case scenario, as I got the cash premium up front for nothing. If the stock goes below the price I promised to buy it for, I have to pay the price I promised, and get the stock. I only do this for stocks I own and like, and would buy anyway. I have the cash available to purchase the stock. If I didn’t have the money, I could buy the option back, generally at a loss.

The #CanadianMoneyTalk channel concentrates on #Canadianinvesting and #personalfinance in Canada.

List of Tax Efficient Canadian Eligible Dividend payers

If you are using a non-registered (cash) account for your investing for cash flow and dividends, you may want to invest in Canadian Eligible Dividend payers. The dividends they pay get taxed very leniently, especially in lower tax brackets – check www.taxtips.ca for your province’s tax treatment. In BC, if I have no other income, the first approximately $50,000 of the dividends is not taxed at all, for example – see below. The government is encouraging us to buy Canadian. And the money you keep, not the money you earn, is important.

I compiled a list of Canadian dividend payers, and classified what types of dividends they pay. I tried to find a list online previously, and mine appears to be the first one. Even the CRA tells you to check the company’s Press Releases or website (Investor section). You should confirm the taxes on the dividends before buying the stock, by looking for “eligible”, “eligible dividends”, “enhanced” and the phrase section 89(14) of the Income Tax Act on the company’s site or in the Press Releases.

You also have to be an individual (other than select trusts) and be a Canadian Resident to qualify for the great tax treatment.

Live Put Option selling session – January 5, 2023

I was asked to do another live session in selling Put Options. I do this monthly, selling “insurance” for cash up front, to get extra cashflow, and to add to stocks I already own cheaper than they are currently. You can “look over my shoulder” while I take you through my process.

January 5, 2023 8 AM Pacific time, no registration necessary.

Meeting Link (please allow camera and microphone permissions):

https://meet.jit.si/moderated/d52a5029419f3f824209c74c8b9ab8f4cc1ee671ee5ea5813b79d42785de44c0