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 $TSLA 20220422 1065.0 call$ TSLA 2022/04/22 1065.0 10.550000 0.620000 65.16% $AAPL 20220422 172.5 call$ AAPL 2022/04/22 172.5 0.360000 0.240000 13.25% $TWTR 20220422 52.0 call$ TWTR 2022/04/22 52.0 0.580000 0.970000 78.27% $FB 20220422 220.0 call$ FB 2022/04/22 220.0 1.240000 0.360000 35.89% $BABA 20220422 104.0 call$ BABA 2022/04/22 104.0 0.830000 0.630000 52.88% $NVDA 20220422 230.0 call$ NVDA 2022/04/22 230.0 1.310000 0.510000 37.49% $AMD 20220422 100.0 call$ AMD 2022/04/22 100.0 0.590000 0.490000 38.57% $NIO 20220422 22.0 call$ NIO 2022/04/22 22.0 0.170000 0.740000 52.63% $PLTR 20220422 13.5 call$ PLTR 2022/04/22 13.5 0.090000 0.550000 44.08% $DIDI 20220422 3.0 call$ DIDI 2022/04/22 3.0 0.050000 1.340000 123.64% $GRAB 20220422 4.0 call$ GRAB 2022/04/22 4.0 0.050000 1.370000 95.05% $MSFT 20220422 292.5 call$ MSFT 2022/04/22 292.5 0.650000 0.260000 14.13% $SPY 20220422 448.0 call$ SPY 2022/04/22 448.0 0.710000 0.150000 9.87% $TSM 20220422 103.0 call$ TSM 2022/04/22 103.0 0.560000 0.360000 34.63% $SE 20220422 121.0 call$ SE 2022/04/22 121.0 1.000000 0.720000 56.03% $AMC 20220422 23.0 call$ AMC 2022/04/22 23.0 0.190000 1.280000 64.14% $AMZN 20220422 3160.0 call$ AMZN 2022/04/22 3160.0 12.500000 0.290000 25.06% $SOFI 20220422 8.0 call$ SOFI 2022/04/22 8.0 0.080000 0.740000 67.03% 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.