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Technology Stocks : How high will Microsoft fly?
MSFT 478.47-1.1%Dec 12 3:59 PM EST
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To: Jean M. Gauthier who wrote (20386)4/12/1999 7:36:00 PM
From: t2  Read Replies (1) of 74651
 
Jean, OT RRSPs. I did almost all my call option trading in RRSPs. Your account has to be set up for options. They will allow call buying as well as selling covered calls. You might just have to get your account to be set up for options---do an ammended application.
The problem is that when you buy US options and sell US options, you are losing about 2% due to the different buy and sell rates for US currency. This is because all trades in an RRSP have to settle in Canadian Dollars. However Toronto Dominion Bank allows you to sell US stocks or options and put the money in their US RSP Money Market fund. This fund is US dollars but for some strange reason , it is considered Canadian content. TD Greenline will offset the exchange rates on the sell and buy transactions. Then you can sell US RSP MM and then buy US securties and have the exchange rates offset. They won't do it automatically, you have to request it. I basically go from US options to US RSP money market fund and don't ever lose on conversion rates.
Of course you face one time conversion to US dollars which won't be the best rate. After that you keep going from US MM to US stocks or options.

BTW--to the best of my knowledge, TD Greenline is the only discount brokerage that will do this. I have checked around.
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