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 $TSLA 20230421 205.0 call$ TSLA 2023/04/21 205.0 2.650000 0.710000 47.66% $AAPL 20230421 167.5 call$ AAPL 2023/04/21 167.5 0.620000 0.210000 12.70% $NVDA 20230421 295.0 call$ NVDA 2023/04/21 295.0 1.650000 0.390000 19.85% $BABA 20230421 113.0 call$ BABA 2023/04/21 113.0 0.940000 0.610000 30.72% $SPY 20230421 422.0 call$ SPY 2023/04/21 422.0 0.590000 0.140000 4.78% $PLTR 20230421 9.0 call$ PLTR 2023/04/21 9.0 0.120000 0.550000 47.46% $COIN 20230421 80.0 call$ COIN 2023/04/21 80.0 0.920000 1.010000 46.16% $NIO 20230421 10.5 call$ NIO 2023/04/21 10.5 0.060000 0.670000 22.00% $AMC 20230421 7.0 call$ AMC 2023/04/21 7.0 0.090000 1.450000 56.99% $AMD 20230421 104.0 call$ AMD 2023/04/21 104.0 0.440000 0.430000 15.29% $SQQQ 20230421 33.5 call$ SQQQ 2023/04/21 33.5 0.480000 0.710000 52.58% $FRC 20230421 25.5 call$ FRC 2023/04/21 25.5 0.100000 1.930000 23.43% $MU 20230421 70.0 call$ MU 2023/04/21 70.0 0.160000 0.420000 8.39% $TQQQ 20230421 30.5 call$ TQQQ 2023/04/21 30.5 0.180000 0.560000 21.82% $AMZN 20230421 108.0 call$ AMZN 2023/04/21 108.0 0.510000 0.320000 16.56% $QQQ 20230421 329.0 call$ QQQ 2023/04/21 329.0 0.930000 0.190000 9.71% $MSFT 20230421 305.0 call$ MSFT 2023/04/21 305.0 0.540000 0.230000 6.19% 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.