OptionsPuppy: Achieving a 90%+ Win Rate and Maximizing Gains with a Simple Strategy

Embarking on a financial journey can be both exhilarating and daunting, especially in the complex world of stock markets and options trading. As we delve into the experiences and strategies that have shaped one investor's approach to capitalizing on opportunities while managing risks, we are reminded of the delicate balance between ambition and prudence. This narrative not only chronicles personal triumphs and setbacks but also offers a candid look into the practical application of investment principles. Let's explore the intricate dance between market trends, investment decisions, and the pursuit of financial acumen, as told through the eyes of an individual who has navigated the highs and lows of the stock market with both conviction and caution.

Here's @Optionspuppy .

In 2022, I made one of my most memorable first US market investments by buying shares of Manulife Financial Corporation (MFC） $Manulife(MFC)$ at $18 per share. At the time, the stock’s price was undervalued, presenting a solid opportunity for both capital appreciation and income generation. Believing in the company’s fundamentals and the stability of the insurance sector, I decided to go in with a few hundred shares.

To maximize my returns, I used a covered call strategy, selling calls with a $20 strike price. This allowed me to collect $1 in premium per share while giving me the flexibility to hold the shares and benefit from potential price appreciation. Within four months, MFC’s share price rose to $20, hitting the strike price of my call options. I gained $2 per share in capital appreciation and retained the $1 premium from selling the calls. Additionally, I collected $0.22 per share in dividends during this period.

In total, this straightforward strategy generated a return of $3.22 per share in just four months—an impressive gain for a relatively low-risk trade. This experience taught me the power of combining stock ownership with options strategies to generate consistent income while capturing growth opportunities.

Looking back, this trade reinforced the importance of identifying undervalued stocks, leveraging options strategically, and being patient enough to let the market work in your favor. While the numbers might seem modest, the cumulative returns across a few hundred shares added up significantly. It’s a great example of how disciplined investing can yield solid results without excessive risk.

Disclaimer: This is for personal learning and sharing only. It is not a recommendation to buy or sell any stock. Please consult a financial advisor for tailored advice.

The Origin of “Options Puppy”

The name “Options Puppy” holds deep personal meaning for me. It honors my beloved puppy who passed away in 2022. Trading options became a way to cope with grief, providing a new focus and helping me learn something challenging and rewarding during a difficult time.

My Most Memorable Trade: $Alphabet(GOOGL)$

One of my most memorable trades was with Alphabet (GOOGL) $Alphabet(GOOGL)$ . I bought the stock at $135, confident in its long-term potential. However, the market took a sharp turn, and the stock price dropped significantly, falling as low as $75. It was a humbling experience that tested my resolve as an investor.

To make the best of the situation, I sold a 24-month call option at a $120 strike price. Unfortunately, the premium was only $15, which felt underwhelming given the stock’s steep decline. This trade taught me a crucial lesson: it’s vital to remain calm and collected, even

during tough market conditions. Overreacting or making rash decisions can lead to even greater losses.

Determined to recover, I shifted strategies and started selling puts on Alphabet regularly. Over time, this approach allowed me to generate around $1,000 in premiums, offsetting some of my earlier losses. It was a practical demonstration of how options strategies can be used to navigate challenging markets and create consistent income.

This experience taught me the importance of staying disciplined and thinking strategically, especially when investments don’t go as planned. It’s a reminder that markets can be unpredictable, but with patience and the right tools, setbacks can turn into opportunities.

Disclaimer: This is for personal learning and sharing only. It is not a recommendation to buy or sell any stock. Please consult a financial advisor for tailored advice.

How I Select Stocks and Options

When it comes to selecting stocks, my primary focus is on two key metrics: earnings per share (EPS) and net cash per share. A strong EPS indicates a company’s profitability, while net cash per share shows its financial stability. Together, these metrics give me confidence in a stock’s long-term potential and help identify undervalued opportunities.

For options trading, I employ a more tactical approach. When selling covered call options, I focus on delta values between 0.10 and 0.50, depending on the stock’s support and resistance levels. This is especially true for Palantir (PLTR) $Palantir Technologies Inc.(PLTR)$, one of my favorite stocks to trade. A lower delta (closer to 0.10) offers safer premiums, while a higher delta (around 0.50) provides better income but comes with increased risk of assignment.

This combined strategy allows me to balance growth potential with consistent income, ensuring that I stay aligned with both technical indicators and market conditions.

How I Manage Risk in a High Market

With the market hovering near allGOOGLime highs, I’ve adjusted my strategy to prioritize risk management and capital preservation. For stocks where I hold at least 100 shares, I’ve sold covered calls across almost all my positions. This approach not only allows me to lock in premium income but also offers some downside protection in case of a market pullback.

At the same time, I’ve allocated 60% of my assets to money market funds, ensuring liquidity and stability. My go-to choices are Tiger Vault Funds and Phillips Capital Money Market Funds, both of which provide reliable returns with minimal risk. This allocation serves as a buffer, allowing me to stay nimble and seize opportunities should the market correct.

By combining options strategies with a conservative cash reserve, I maintain a balanced portfolio that generates consistent income while safeguarding against volatility.

Balancing Work and Investing

As a freelance tutor specializing in mathematics and accounting, my work schedule offers flexibility but also requires dedication. I usually start work later in the day and continue into the evening, accommodating my students’ schedules. While this keeps me busy, it also allows me to integrate trading into my routine seamlessly.

Traveling between tutoring sessions becomes an opportunity to stay engaged with the markets. Using mobile trading platforms, I manage my trades, monitor positions, and analyze market trends on the go. This flexibility enables me to capitalize on opportunities without compromising my teaching responsibilities.

Balancing these two roles has taught me the importance of time management and focus. By dedicating specific moments to trading and ensuring my work commitments remain a priority, I’ve created a sustainable rhythm that supports both my professional and financial goals.

My Take on the Current Market: Covered Calls for Protection

With the market sitting near all-time highs, I’ve adopted a cautious yet strategic approach to managing my portfolio. For my $Palantir Technologies Inc.(PLTR)$ Palantir (PLTR) shares, I’m actively selling covered calls with strike prices that are 3% to 5% above the current price. These options are typically set to expire weekly or every 10 days, allowing me to collect consistent premium income while retaining flexibility.

This strategy serves two purposes: first, it generates additional returns, adding a layer of income to my portfolio regardless of market direction. Second, it provides a cushion against potential market declines, as the premiums collected reduce my effective cost basis on the shares.

While no strategy can fully eliminate risk, this approach aligns well with my outlook in a high-market environment. It lets me stay invested in PLTR’s long-term potential while mitigating short-term volatility. By reevaluating positions frequently and adjusting strike prices based on market trends, I aim to strike a balance between growth and preservation.

A Message to Fellow Tiger Users

Always remember to do your own research and homework before making any trades. The market is a great teacher, and every mistake is an opportunity to learn and grow as a trader. By understanding the reasoning behind each decision, you can improve your strategies and build lasting confidence in your investments.

Disclaimer: I am not a financial advisor. This is for personal sharing and learning purposes only. Please consult a financial professional for tailored advice.

Thank @Optionspuppy the fantastic sharing! If you're eager to know about his latest live trading actions, make sure to subscribe to his real-time updates! (Click here to view>>)

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