So my TFSA is approved for option-trading, but I have question about the long-calls I'm buying: let's say I have contributed $20,000 to my TFSA and have zero contribution room left. Let's say I buy $20,000 in long call contracts, and the stock price increases and I want to exercise the contracts (let's assume I want to do this because it was a thinly-traded option with a wide spread, so I would have gotten screwed by trying to sell them back, so I just figure why-not: I'll exercise + take possession of the stock, which is worth, let's say $50,000, after which I can sell it in the market if I wish.).
HOWEVER, I'd need to have sufficient funds in my TFSA to be able to actually BUY the stock that I'm exercising the options for, right? In other words, that $20,000 was spent on the option premiums in order to buy the option contracts in the first place...my trade worked out, but I still need to come up with the money to BUY the underlying shares I'm exercising the options on, right? How do I get money into my TFSA to do so when I have zero contribution room left?
Am I missing something? I have to think that if the gov is allowing margin/options trading within TFSA account, there's got to be some sort of provision for circumstances like the above, where a person needs to deposit additional funds because of an option exercise, right?