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Can you trade options in an RRSP?

In one line: RRSP options are listed options traded inside a Canadian Registered Retirement Savings Plan, usually limited to covered calls, bought options and, at some brokers, cash-secured puts.

Trading glossary · Updated 2026-10-27

How it works

Yes. An RRSP, Canada's Registered Retirement Savings Plan, can hold listed options, with the same main limit as a TFSA: no borrowing.

• Covered calls on shares in the RRSP: widely allowed.
• Buying calls and puts: widely allowed.
• Cash-secured puts: depends on the broker, with the full cash in the account.
• Anything that needs margin: not allowed.

Money grows tax-deferred inside the plan. You pay tax when you take it out, as regular income. Options permissions differ by broker, so check your broker's current help pages.

This is general information, not tax advice; check with a tax professional or your broker.

What about US dividends?

Under the Canada-US tax treaty, dividends from US-listed stocks and ETFs held directly in an RRSP are usually exempt from US withholding tax. In a TFSA, they usually aren't. That's why many Canadians hold US dividend stocks in an RRSP.

The exemption doesn't cover Canadian-listed funds that hold US stocks. And your broker needs the right forms on file. Check with your broker.

An example (hypothetical)

You hold 100 shares of a US stock, XYZ, in your RRSP, bought at $50 (an illustration, not a trade idea). It pays a $0.50 dividend this quarter. You sell a $55 call for $1.00.

The $50 dividend usually arrives with no US tax taken off. The −$900 row is the part to note. A loss inside an RRSP can't be used against gains elsewhere, and the contribution room you used doesn't come back.

One more catch: if the call is in the money before the ex-date, it can be exercised early, and you'd miss that dividend. See Ex-date risk. A math example, not a promise.

Why it matters for sellers

The wheel strategy in an RRSP works much like in a TFSA. Covered calls are the easy half. Puts need a broker that allows them and the full cash set aside. The tax difference is mostly about withdrawals and US dividends, not the trades themselves.

Questions