Can I ask why is it possible to key in your own bid price and strike price like you did in the video where you keyed in bid price of 2.50 and strike at $19.50? Thanks in advance!
Great video! Awesome to see smart options trader making great content online. Just curious where did you learn how to do the wheel strategy--selling covered calls and cash secured puts?
Hmm.. I’m not too sure if they offer more strategies to trade. Maybe it’s offered in their computer interface instead of mobile. Sorry I don’t have answers for this. But perhaps interactive brokers might be another good option for you to use?
Hi thanks for sharing! Im a beginner. Want to know how does the commission fee be deducted? Is it from the deposited money that i deposit from my bank acc?
I’m not too sure if it applies to options trading. There’s is a margin tt u need to maintain support.fututrade.com/hc/en-us/sections/360005490914-Margin-Trade
Not too sure why, but has your money reflected on the account? You’ll also need to exchange your money into the right currency to trade. For example if you deposited sgd, you’ll need to exchange it to usd in order to trade in the us exchange.
Hey, was looking for a video on Options Trading in MooMoo and found yours! Am new to options, hence like to understand... Wouldn't you put strike price at $17 if you like the option to buy at $17 if it is in the money? If it doesn't hit $17 then you can earn the premium. Thanks in advance!
Yes that’s possible! If u want to own it at $17, you can sell a put option. How I determine the strike price also depends on the price of the premium. So example say you sell strike at $21premium at $4 vs strike $17 premium at $1 You can have more premium when it’s a higher strike price. But then if it gets assigned then you will also ‘lose’ more. For eg if $21 strike price you get assigned you are paying $17 since you sold premium at $4. While $17 strike price you get assigned you are paying $16 since premium is $1. I think you also need to account for fees too. So if the premium is too low, it might not make sense. Hope this clarifies/ answer you question?
@@NowRealise Thanks for the reply and example provided. I see now what you mean, as in your example, your analysis should be showing you that the probability of hitting higher strike price is unlikely so you do it that way to earn more premium which can still cover you sufficiently if strike price is ever hit, though that is not the plan.
Usually when I sell option it’s because i don’t mind owning the stock. instead of buying the stock TODAY at X price I might just sell an option to see if I could earn the premium or buy it at a later date at lesser than X price compare to TODAY. Not sure if anyone have the same thinking as me but so far this has worked for me.
@@NowRealise yes I agree and think it will be like a balance between leaning towards premium or buying the stock depending on your plans each time. By the way, so you are able to sell put options in MooMoo right? And no need to lock in any cash for selling the put option?
We have not tried tiger so can’t comment on it. For UI we think moomoo is better as IB would need some learning curve. However in terms of fees, IB should be better.
The way you trading sell put option is very unique. You made a profit of the premium collected after 25 Jun expiration date. Thanks for sharing. Why you didn't buy call option to ride the trend up? I am curious.
Hi Ivan, thanks for the comment! I prefer selling put as the odds of profiting from the trade is better because I can’t predict the future (as in when the price would go up, whether is it in the next week, month or year). At the point when I decided on my trade, I wasn’t sure whether the stock would go up or down in the short term. So by selling a put option, I can get the premium if the price isn’t within the strike price or own the stock at a discount price. In the short run, the market is a voting machine, but in the long run, it is a weighing machine. I’m happy to hold for long term as I believe in the company. I’m also learning how to value a company properly so eventually I’ll be able to analyse deeper into a company’s fundamental. Buying a call option has unlimited upside. But there is a risk of time decay which I’m not good at predicting in terms of charting/technicals. Also, I don’t know when I should be exiting my positions too, so as a seller I can just wait till the options expire. I only sell options for companies that I’m willing to hold for long term or the IV is super high (200% and above) where the risk make sense. My key strategy using time to my advantage and not really looking at leveraging buying call options. So I’m essentially leaving the $$ on the table so that I could increasing my chances of profiting. Sorry it’s a bit long. But hope this makes sense? 😅
@@NowRealise I feel you understand what you are doing at your young age. I am more old school and simple just using option leveraging on the uptrend. :)
Buying options (put or call) is a directional trade and time decay will go against you every passing day; the price must then move asap in your favor or you will lose the premium you paid (which is capped). In the contrary, being net seller of options have more advantages and higher probabilities of success, the only time net seller is in trouble is when price challenges your strike price, theoretically the losses can be unlimited but it seldom happens as every options positions must be managed accordingly (close, roll out and/or up/down). And combining options with stocks positions are very powerful and boost the performance of your portfolio.
The campaign should be over and now Moomoo is running a different campaign mechanics for Christmas/year end. So you’ll have to check via their website T&Cs. j.moomoo.com/00bP3G
Thanks for the question! Moomoo don’t charge custodian fees on most stocks unless they are ADR stocks (ADRs are a US security which represents the ownership of shares in a foreign company.) For example chinese stock such as BABA in NYSE versus Alibaba stock in Hong Kong. If you buy their US listing then there’s custodian fees. Hope this helps! support.futusg.com/en-us/topic76/h5
Hi. Thank for the information. May I know why do you sell the put option at a higher price compared to the current market price? Are you expecting the share price to go higher than your put strike price? I am still learning how to trade option hence Im still confuse with your strategy. thank you
Hi Chris! Thanks for your comment! For palantir, the technicals look like $17 was the support level and since the stock was around $18, I decided that to lower the risk and maximise my profit by selling naked put with strike price $19.50 at $2.50. So in the event that the stock expires in the money, I’ll own the stock at $17 which is a price I’m happy with. And if it’s out of the money then I’ll keep the option fee! There are also other conditions that I look at such as IV, delta, theta. And also looking at price targets from other people’s analysis (like how much they are willing to pay for the stock). To determine if I want to have a position. There was a chance that the order do not close. So I might miss out and that’s fine for me. Also I live in Asia, so I usually set a price after monitoring the price movements for a couple of hours before I head to sleep. 😂 My strategy is probably not professional as I’m still learning more about technicals and fundamentals. Hoping to arm myself with better knowledge and well thought out strategy. So I guess I’m not the best person to learn from yet. All the best in your trading!
