$Hang Seng Index - Nov 2022(HSI2211)$$Alibaba(BABA)$$NIO Inc.(NIO)$$NIO Inc.(NIO.SI)$A tale of 2 options. Expiry and Theta burn.

HSI look poised for a rally reversing the ‘uninvestable’ tag it has been carrying for the last 6 months. I’m personally vested in baba tencent hsi tech etf nio. , it was hard to bear the downtrend, especially the last month. In between, I sell calls, collect some premiums and bought calls anticipating the market will turn up.

Friday big rally moves baba shares 7% higher, however , while my call $75 was on track for the ‘target’ , the expiry date render the option worthless , theta burn on the last day was brutal. I held this option for 2 weeks. Had this option expire next week, I could be seeing some healthy profits.

Nio was a different story, bought this further call expiry Jan 23. Although not considered a leap call, 2 month down should see less of a theta burn during the first month . Option price set was $17. IMO would be achievable come December. As of Friday , it was a 93% gain during the 17% up push in price .

This week, I will be looking to do a leap call for $Alibaba(BABA)$into the feb expiry .

For nio, if this week stock hit target $13-$15. I will close out my buy call and roll out another to a further expiry date.

In options, not only you have to get the direction right , you have to get the expiry timeline right .

there are more information on options explanation and execution on the tiger broker video section that you can explore to know more.

As always, invest wise . Do your own homework and not blindly follow.