S&P Up 7 Days Straight! Covered Calls Best Strategy Now?

Join me in trading this earnings season! Let’s learn options with demo account, and grow investment knowledge through practice!

avatarTiger V
05-24

Investment Reflection: Cash Secured Put Option on Barrick Gold

Overview On May 23, 2024, I executed a cash-secured put option on Barrick Gold$Barrick Gold Corp(GOLD)$  , selling one contract with a strike price of USD 17, maturing on June 21, 2024. The premium received for this option was USD 41. This investment strategy was chosen based on the promising trends exhibited by Barrick Gold, particularly its ability to reinvest in the business and generate higher returns on capital employed. Rationale Behind the Investment Strategy Reinvestment and Returns on Capital Employed: Barrick Gold has demonstrated a commendable capacity to reinvest its earnings into the business effectively, yielding higher returns on capital employed. This trend suggests strong management and a sustainable business model, which a
Investment Reflection: Cash Secured Put Option on Barrick Gold
avatarTiger V
05-24

Investment Reflection: LEAP NXT Cash Secured Put Option Strategy

Overview On April 16, 2024, I sold one contract of a LEAP NXT cash-secured put option with a strike price of USD 40 and a maturity date of November 15, 2024, for a premium of USD 437. This strategic move was driven by my confidence in the stability or potential appreciation of NXT's stock price. However, I decided to close this position on May 23, 2024, for USD 238. Here’s a detailed reflection on this investment strategy. Initial Strategy and Rationale Selling cash-secured put options is a conservative strategy that aligns well with my risk tolerance and investment goals. By selling the put option, I committed to purchasing NXT shares at USD 40 if the stock price fell below the strike price by the maturity date. This position was secured by holding enough cash to purchase the shares if e
Investment Reflection: LEAP NXT Cash Secured Put Option Strategy
$Vanguard S&P 500 ETF(VOO)$ $Vanguard S&P 500 ETF(VOO)$  I'm Still a newbie with options, so try to play safe. So my approach so far is to go long and try to bet on certainty. But I here you thinking "nothing is certain in the stock market" and of course you are right. But based on historical data, with the S&P over the long term, the only way is up. Yes there have been corrections but on average we are told that the historical 9% average return is not beaten by most investors that try to pick stocks. And although we are also told past performance is no guarantee of future performance. Well I'd argue that the data on the S&P is so vast, well it gives a level of reliability and of course
avatarTiger V
05-22

Investment Reflection: Selling a Palantir Cash-Secured Put Option

Overview of the Strategy On May 21, 2024, I sold a cash secured put option for Palantir Technologies $Palantir Technologies Inc.(PLTR)$   with a strike price of $20 and a maturity date of June 21, 2024, receiving a premium of $40. This strategy involves selling a put option, which obligates me to buy Palantir stock at the strike price if the option is exercised. Given Palantir's recent performance and financial strength, this strategy appeared to be a prudent way to potentially acquire the stock at a discount or to earn income from the premium received. Rationale for the Strategy 1. Current Stock Performance:  At the time of the option sale, Palantir’s stock was priced at $21.28 and the advent o
Investment Reflection: Selling a Palantir Cash-Secured Put Option

trying options via demo account

so I demo-ed $TLT 20240621 87.0 PUT$, short put of $iShares 20+ Year Treasury Bond ETF(TLT)$ at $87, expiring at 21st June as per @OptionsTutor  thank god this is demo. otherwise my weak heart can't handle it 💔 😭 
trying options via demo account

SPX should produce a higher high targeting 5335-5350

As long as $S&P 500(.SPX)$ remains above 5283, we should produce a higher high targeting 5335-5350. If so, that should terminate the bearish B-Wave or bullish Third Wave. However, the loss of 5283 should lead to 5240-5211 support, which is also the area of interest following a rally to 5335-5350. $SPDR S&P 500 ETF Trust(SPY)$ $E-mini S&P 500 - main 2406(ESmain)$ $E-mini Nasdaq 100 - main 2406(NQmain)$ $Invesco QQQ(QQQ)$ ImageImage
SPX should produce a higher high targeting 5335-5350

Wall Street Hits New Highs as Dow Surpasses 40,000 Mark Amid AI Cooling

It seems AI fever's slightly cooling off, and now the US stock market is all about a full-blown rally. $DJIA(.DJI)$ has hit a new milestone, crossing the 40,000 mark for the first time, and this new sign is making everyone even more optimistic about the future of the US economy.You know, these days, tech stocks have been the king of the US stock market. With the Fed constantly hiking interest rates, it's become a stage for the tech giants. While they're shining brightly, traditional companies seem a bit overshadowed.But interestingly, among the Dow's biggest players, it wasn't tech giants like $Apple(AAPL)$ or $Microsoft(MSFT)$ that led the charge from 30,000 to
Wall Street Hits New Highs as Dow Surpasses 40,000 Mark Amid AI Cooling
avatarTiger V
05-18

Investment Reflection: Cash Secured Put Option on GOLD

Overview of the Trade On 10 May 2024, I sold 3 contracts of a cash-secured put option on GOLD $Barrick Gold Corp(GOLD)$  with a strike price of USD 17 and a maturity date of 24 May 2024, receiving an option premium of USD 0.35 per contract. Subsequently, on 13 May 2024, I decided to roll over these 3 contracts to a new maturity date of 14 June 2024 and received a net option premium of USD 0.20 per contract. The GOLD market conditions played a significant role in these decisions and outcomes. Market Conditions and Trade Adjustment Initial Sale: - Date: 10 May 2024 - Strike Price: USD 17 - Maturity Date: 24 May 2024 - Option Premium: USD 0.35 per contract Market Conditions: On 10 May 2024, the US employment figures showed sign
Investment Reflection: Cash Secured Put Option on GOLD
avatarTiger V
05-18

Investment Reflection on GOLD Vertical Put Option Strategy

On May 9, 2024, I initiated a vertical put spread on GOLD $Barrick Gold Corp(GOLD)$  by selling a put option with a strike price of USD 17 and buying a put option with a strike price of USD 16, both maturing on June 21, 2024. This strategy, known as a bull put spread, allowed me to collect an initial premium of USD 39. The rationale behind this strategy was to capitalize on the expectation that GOLD would remain above USD 17 until the maturity date. Initial Strategy and Expectations The vertical put spread is a limited-risk, limited-reward strategy designed to benefit from a bullish outlook on the underlying asset, in this case, GOLD. By selling the higher strike put (USD 17) and buying the lower strike put (USD 16), I aimed to generate inco
Investment Reflection on GOLD Vertical Put Option Strategy
avatarTiger V
05-18

Investment Reflection on Palantir Cash-Secured Put Option

Overview On May 8, 2024, I initiated a cash-secured put option for Palantir Technologies $Palantir Technologies Inc.(PLTR)$   with a strike price of $20 and a maturity date of June 21, 2024. The option was sold for $71, reflecting the strong market sentiment towards Palantir, which was trading at $23.52 at the time. Palantir's impressive 214.84% growth over the past year and its solid financial performance influenced my decision. However, on May 17, 2024, I decided to close the position by buying back the option for $31. This transaction resulted in a net profit of $40. Market Context and Initial Position Palantir has been a standout performer, with significant growth in its stock price and robust financia
Investment Reflection on Palantir Cash-Secured Put Option
avatarSTLoke
05-17
$S&P 500(.SPX)$  $SPDR S&P 500 ETF Trust(SPY)$   Selling covered calls can be a prudent strategy in the current market environment, especially with the S&P 500 experiencing a seven-day rally. Here’s why it might be advantageous: 1. Income Generation: Selling covered calls allows you to earn premium income on stocks you already own, which can enhance your returns. 2. Downside Protection: The premium received can provide a cushion against potential declines in stock prices. 3. Market Outlook: If you believe the market may consolidate or pull back slightly after the recent run-up, selling covered calls could capitalize on this view.
avatarSpiders
05-16
Covered calls can be risky but utilising a demo account to learn about them is advantageous as it allows for risk-free paper trading.
$SPDR S&P 500 ETF Trust(SPY)$   The stock market is made up of 2 groups of people The first group, speculators/gamblers (majority) treat the stock market like a casino. The second group, the investors (minority) treat the stock market like a supermarket of business that are on sale. You can make money in both groups. However, to make money, you have to follow a very different set of rules The Speculation Game The speculation game is a lot more attractive as it gives the impression that you can get rich a lot quicker. This is true but the chances of making money over the long run is much lower (less than 5% of people end up profitable). This is the ‘greater fools game’, where you buy something (even if it
avatarjjkc
05-14
I got wiped down selling puts in April. Switched to synthetic calls. Gives me more time to navigate current volatility. Many stocks on sale. Take your pick. Am back in the green. When the market stabilizes again, will move back into option selling. 

Tiger Weekly Insights:2024/05/06—2024/05/12

I. Performance of Global Equity Indices (in US dollars) Source:Bloomberg, 2024/05/06-2024/05/12 II. Key Market Themes i. Favored by capital and entering the market in haste, how much further can the Hong Kong stock market rise? •In the past month, the Hong Kong stock market has shown a remarkable increase, with both the Hang Seng Index$恒生指数(HSI)$ and the Hang Seng Tech Index $恒生科技指数(HSTECH)$ significantly outperforming other major global stock indices. Regarding this, opinions in the market vary. From a valuation perspective, the Hong Kong stock market is currently in a relatively low range. The forward price-to-earnings ratios (P/E ratios) of the Hang Seng Index and the Hang Seng Tech Index are 8.9 and
Tiger Weekly Insights:2024/05/06—2024/05/12
avatarRkid
05-13

Get ready for a super duper volatile week

Get ready for a super duper volatile week
avatarRkid
05-13

This week going to be hot!

This week going to be hot!
avatarRkid
05-13

This week is gonna be hot!

This week is gonna be hot!
avatarMccoy
05-12
My strategy remains the same. Selling puts and calls. I have built a system over the years using options to help me generate side income.