Writing naked puts in Canada

[EdWatchesBoxing]

I just found out that I can't write naked puts with BMO investorline.

 

Just wondering how other Canadians are doing it. Which broker do you use?

 

TIA

 

[Smazz]

not legally allowed - unless you have enough margin I believe.

 

If you dont have the margin or the equity, you prob shouldnt be doing it anyway.

[EdWatchesBoxing]

Thanks for the reply.

 

An investorline rep got back to me and mentioned that my account is only enabled to write covered options. They said that my account can be upgraded to allow me to write naked puts, but I need to fill out an application and provide a separate letter to state that I wish to write naked puts. The application doesn't provide this option.

 

I was planning on writing cash covered puts, so at least now I know I can do it!

 

Hope this helps others.