To The Moon

Selling covered call options (sell covered call) is a strategy adopted by many large funds. It can also be used by retail investors in the US stock market.You can get income while holding it. This strategy is very suitable for stocks that have long-term positions, but they have not moved but they are not in a bearish position recently or are in a bearish position recently. It can be a good strategy for mature investors to roll over when holding some targets for a long time. Income comparison Assume that investors hold 200 shares of Amazon from January 1 to December 17, 2021 If there is no operation during the holding period, the final total assets will be USD 675,484 If the covered call strategy is carried out, it will be operated once a week; if 100 shares are sold after the exercise, another 100 shares will be purchased on the next trading day.The final total assets is USD 728898 (include fees and costs). Today's Covered Call（for your reference） Option Stock Expiry Date Strike Price Premium Implied volatility Annualized rate of return $TSLA 20250103 515.0 call$ TSLA 2025/01/03 515.0 5.120000 0.690000 40.43% $NVDA 20250103 149.0 call$ NVDA 2025/01/03 149.0 0.530000 0.330000 13.80% $PLTR 20250103 91.0 call$ PLTR 2025/01/03 91.0 0.600000 0.580000 26.58% $MSTR 20250103 430.0 call$ MSTR 2025/01/03 430.0 3.600000 0.940000 36.69% $AMD 20250103 135.0 call$ AMD 2025/01/03 135.0 0.550000 0.000000 15.90% $AAPL 20250103 265.0 call$ AAPL 2025/01/03 265.0 0.390000 0.130000 5.51% $SMCI 20250103 42.5 call$ SMCI 2025/01/03 42.5 0.220000 0.920000 23.39% $SPY 20250103 616.0 call$ SPY 2025/01/03 616.0 0.140000 0.080000 0.85% $COIN 20250103 320.0 call$ COIN 2025/01/03 320.0 1.750000 0.660000 22.84% $AVGO 20250103 285.0 call$ AVGO 2025/01/03 285.0 0.160000 0.000000 2.44% $RGTI 20250103 19.0 call$ RGTI 2025/01/03 19.0 0.150000 0.000000 48.24% $SOUN 20250103 27.0 call$ SOUN 2025/01/03 27.0 0.400000 1.520000 72.13% $QUBT 20250103 32.0 call$ QUBT 2025/01/03 32.0 0.500000 0.000000 106.76% $MARA 20250103 23.5 call$ MARA 2025/01/03 23.5 0.240000 0.000000 43.47% $QQQ 20250103 548.0 call$ QQQ 2025/01/03 548.0 0.200000 0.000000 1.38% $AMZN 20250103 240.0 call$ AMZN 2025/01/03 240.0 0.310000 0.000000 4.94% $NIO 20250103 5.5 call$ NIO 2025/01/03 5.5 0.030000 0.830000 23.70% $GOOG 20250103 210.0 call$ GOOG 2025/01/03 210.0 0.270000 0.000000 4.99% Note: Options listed in this table are for reference only during the trading hours of the day; Hot stocks are the top 20 stocks with highest number of visits on Tiger Trade; Data source:Tiger Trade. Option Screening Rules strike >= p * e^{1.04 * sigma * sqrt{days/365}} p : current stock price sigma：Stock History Volatility days ：the number of days from the option expiry date ( next Friday) If you have no experience in trading options, you can try option simulation trading Guidance for Options Paper Account Questions and Answers What Is a Covered Call? The term covered call refers to a financial transaction in which the investor selling call options owns an equivalent amount of the underlying security. How to make extra profits by selling covered call Strategy applicable group： Hold the positive shares mentioned in the strategy, hold a position of ≥100. How do I know if a covered call has been completed: The presence of the word portfolio next to the name of an open stock or option indicates the execution of a covered strategy. Strategic income： An annualized return is calculated based on yesterday's closing price by referring to the option strategy filter rule. (premium per share / yesterday's closing price) * (No. of days in 1 year / duration of option in days) For example, yesterday's closing price is $100 , the option premium is $1 and expires 30 days from now. Putting it into the equation (1/100) * (365/30) = 12.17% per annum. Exercise pric： The option price is calculated according to yesterday's closing price by referring to the option strategy screening rule. Whether to trade at the strike price provided in the strategy depends on how far the share price diverges from the closing price. Exercise： Shares held at expiration are sold at a price above the strike price. The stock price on the expiration date is lower than the exercise price, the stock held does not move, the value of the option goes to zero and is automatically cleared by the system. Risk warning： If the stock price on the expiration date is higher than the strike price, and the position cost price is higher than the strike price, the stock sold due to counterparty exercising of the option may cause losses. DISCLAIMER Options are categorised as Specified Investment Product (SIP) and are generally more complex than other financial products. You will need to go through a Customer Account Review (CAR) before Options can be offered to you. The information expressed herein is current and does not constitute an offer, recommendation or solicitation, nor does it constitute any prediction of likely future stock performance. The price of investment instruments can and do fluctuate, and any individual instrument may experience upward or downward movements, and under certain circumstances may even become valueless. Past performance is not a guarantee of future results. In preparing this information, we did not take into account the investment objectives, risk appetite, financial situation or particular needs of any person or affiliated companies. Before making an investment decision, you should speak to a financial adviser to consider whether this information is appropriate to your needs, risk appetite, objectives and circumstances. Tiger Brokers assumes no fiduciary responsibility or liability for any consequences financial or otherwise arising from trading in securities if opinions and information herein may be relied upon. This advertisement has not been reviewed by the Monetary Authority of Singapore.