LuffyFoong
LuffyFoong
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avatarLuffyFoong
2022-01-06

Selling Put, what should be the optimal strike & expiry?

Selling put options can allow the generation of regular income, but deciding the strike price and expiry date is always challenging.By theory, a lower strike price will fetch a higher premium for sellers, but it comes with higher risk of assignment, possibly result in an overall loss instead.Also, by setting a further expiry date can fetch a higher premium for sellers too, but it comes with both risk and opportunity, for the stock price to fall or increase. Stock price fall can result in an overall loss, while stock price gain will increase the likelihood for the option to expire without value.To decide on the strike price, we need to determine what we want.1. If you want small profit with minimal risk, try to set a very far ‘out-of-money’ strike price, such that we can likely gain th
Selling Put, what should be the optimal strike & expiry?
avatarLuffyFoong
2022-01-07

A losing trade? Not to worry, option reset!

When we decided to buy a stock, we might have experienced a fall in stock price, causing us to suffer from paper losses. The only way to recover from the paper loss is wait for the stock price to recover back to our cost price, which sometimes can take very long to happen.But if we use options to trade stocks, with the power to convert time into money, it can be potentially profitable over time, even when the stock price falls and never really recovers, since we can make some small profit aswe sell puts over time.Using $Tiger Brokers(TIGR)$as an example,supposed you sold 1 lot of put with strike price $5, expiry date 20210121, at existing stock price of $4.31. Assuming at the end of 20210121, the stock price falls to $4, and you got
A losing trade? Not to worry, option reset!
I opened $Apple(AAPL)$  ,It just keep dropping…
avatarLuffyFoong
2021-12-29
Option rolling - Roll the option to prevent them from getting exercised, while not losing out.Often, we find ourselves selling out-of-the-money cash secured puts and covered calls to generate some additional income, but ended up getting assigned or called off when the options get in-the-money. It may be alright if you have the intention to buy in more of the underlying stocks, or have the intentionto sell off the stocks. But if you don’t, then maybe ‘rolling’ the options is a good way to prevent assignment/called off.Using $Apple(AAPL)$as an example, supposed you have sold a put at strike 177.50, expiry 20211231, and it is at risk of being assigned, you can actually ‘roll the option’ by buying back the same put at the cost of 1
avatarLuffyFoong
2022-01-04

Sell put or buy shares while selling calls? Do both!

Have you ever bought shares for long term, only to realise that the stock price tends to drop within the short term right after you bought them?Have you ever sold a put to earn premium, only to realise that the stock price shoots up so fast, but your gains are only limited to the put premium you collected?It is hard for us to time the market, let alonein beating the market, it is not possible for us to always buy at the lowest. If we are bullish over a particular stock, we can actually buy some of the stock directly, while selling put for the stock at a strike price lower than our entry price. In this way, we can use the premium from the sold out to lower our initial cost, assuming the stock price stays about the put strike price, and in any event if the stock price did fall to t
Sell put or buy shares while selling calls? Do both!
I opened $SPDR Portfolio S&P 500 ETF(SPLG)$  ,Keep accumulating
I closed $NVDA 20250117 80.0 PUT$  ,Closed with profit
I closed $Apple(AAPL)$  ,Hit & run
I opened $BAC 20241220 38.0 PUT$  ,Preparing to take in more BAC when the price is right
avatarLuffyFoong
2023-12-28
$Apple(AAPL)$ consistency beats everything. Buy consistently, buy when the stock price is high, buy more when the stock price is low to 'dollar cost average'  As time goes by, before you even realised it, your holdings will actually be making unrealised profits even when the stock price is not at its all time high.  Disclaimer: This only applies to quality stock. To play safer, one can consider the index, etf, such as $SPDR Portfolio S&P 500 ETF(SPLG)$  Invest safely, within your means.
avatarLuffyFoong
2022-03-30
Regain 3 trillion market capitalization is only amatter of time. Once it is achieved, we will be looking for more. 4 trillion, 5 trillion. For the win!
avatarLuffyFoong
2022-01-22

Option strategies as the market crawls back

Most companies stock price are falling, the tech firms in particular. While I am generally bullish about the market, there are some options strategies where we can apply in to take advantage of the bearish situation.1. CALL CREDIT SPREADWe can perform it by selling a Call Option ata lower strike price, while buying a Call Option at higher strike price, both with the sameexpiry date. Ideally, we want to choose the strike price to be significantly above existing stock price, to give us some buffer space toplay with.This strategy can allow users to make a small profit by hoping that both options turn worthless upon expiry, and in any unfavourable event in which the stock price actually went up above the sold Call Option Strike Price, the loss is capped by the other Call Option purchased.Using
Option strategies as the market crawls back
I opened $PLTR 20241220 30.0 CALL$  ,For the premium and profit
I opened 1 lot(s) $ALB.HK 20240627 110.00 CALL$  ,Take a look at the latest order I posted!
avatarLuffyFoong
2023-12-28
I opened 1.0 share(s) $Apple(AAPL)$  ,Take a look at the latest order I posted!
I opened 1 lot(s) $SPLG 20240315 57.0 CALL$  ,Taking premiums from ‘at the money’ Call
I opened 20.0 share(s) $SPDR Portfolio S&P 500 ETF(SPLG)$  ,Accumulate from time to time, sell covered calls for additional income.
I opened $Bank of America(BAC)$  ,Buying BAC for long term
I opened $BAC 20241220 44.0 CALL$  ,Covered CALL for premium, and to take profit

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