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since I have some time here is a little help in this bear market.
How to protect your portfolio;
Buy a leveraged Inverse ETF - Leveraged ETFs do the work of options for you. They leverage options, company and government bonds, futures or some combination of them to obtain a return near their stated goal. (SQQQ has a goal of 3 times the inverse of QQQ etc.)
$ProShares UltraPro Short QQQ ETF (SQQQ.US)$ Very easy, QQQ goes down SQQQ goes up 3 times what QQQ went down.
$ProShares UltraShort QQQ (QID.US)$ about ha...
How to protect your portfolio;
Buy a leveraged Inverse ETF - Leveraged ETFs do the work of options for you. They leverage options, company and government bonds, futures or some combination of them to obtain a return near their stated goal. (SQQQ has a goal of 3 times the inverse of QQQ etc.)
$ProShares UltraPro Short QQQ ETF (SQQQ.US)$ Very easy, QQQ goes down SQQQ goes up 3 times what QQQ went down.
$ProShares UltraShort QQQ (QID.US)$ about ha...
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In the wake of an unexpected decline in the $S&P 500 Index (.SPX.US)$ following the latest Consumer Price Index (CPI) figures, traders in the US equity options market are on edge as the market awaits the Tuesday release of fresh inflation data.
The S&P 500 Index is predicted to move 0.9% in either direction on Tuesday, the largest shift ahead of a consumer price index announcement since April 2023, according to Citigroup's Stuart ...
The S&P 500 Index is predicted to move 0.9% in either direction on Tuesday, the largest shift ahead of a consumer price index announcement since April 2023, according to Citigroup's Stuart ...
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A man came one day to the great Greek philosopher Socrates and said, "Teacher, I have studied many of your precepts and yet I still do not have your success. What is the secret to your success?" Socrates looked at the young man and said, "Follow me." Perplexed, the young man followed Socrates to the river's edge. Socrates waded in, clothes on and all, and motioned the man to follow. The man followed him until the water was up to their chest. Then, without warning, Soc...
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Options Greeks: What you should know
The Greeks
Delta – An option’s delta is the rate of change of the price of the option with respect to its underlying security’s price. The delta of an option ranges in value from 0.0 – 1.00 for calls (0 to -1.00 for puts) and reflects the increase or decrease in the price of the option in response to a 1-point movement of the underlying asset price.
Used to measure the change in value of a contract from a $1 change. Also is used to measure the probability of an Option Contract Expiring “ITM” (In-The-Money). For Example, a Delta of 0.40 can be seen as a 40% chance to Expire ITM.
Gamma – An option’s Gamma is a measure of the rate of change of its delta. The gamma of an option is expressed as a percentage and reflects the change in the delta in response to a 1-point movement of the underlying stock price.
Measures the change in Delta from a 1$ movement in the underlying asset (stock, ETF, things like that). If the underlying moves an additional 1$ Then Delta would equal the Total of Delta + Gamma. After the First Dollar move, any additional moves in the same direction increases the value of Delta by the amount of Gamma.
For Example, XYZ 100 12/31/20 Call for $1.00 and has a delta of .50 and a gamma of .05.
The price of XYZ moves 1 dollar upwards so the new price of the contract becomes 1.50.
The P...
The Greeks
Delta – An option’s delta is the rate of change of the price of the option with respect to its underlying security’s price. The delta of an option ranges in value from 0.0 – 1.00 for calls (0 to -1.00 for puts) and reflects the increase or decrease in the price of the option in response to a 1-point movement of the underlying asset price.
Used to measure the change in value of a contract from a $1 change. Also is used to measure the probability of an Option Contract Expiring “ITM” (In-The-Money). For Example, a Delta of 0.40 can be seen as a 40% chance to Expire ITM.
Gamma – An option’s Gamma is a measure of the rate of change of its delta. The gamma of an option is expressed as a percentage and reflects the change in the delta in response to a 1-point movement of the underlying stock price.
Measures the change in Delta from a 1$ movement in the underlying asset (stock, ETF, things like that). If the underlying moves an additional 1$ Then Delta would equal the Total of Delta + Gamma. After the First Dollar move, any additional moves in the same direction increases the value of Delta by the amount of Gamma.
For Example, XYZ 100 12/31/20 Call for $1.00 and has a delta of .50 and a gamma of .05.
The price of XYZ moves 1 dollar upwards so the new price of the contract becomes 1.50.
The P...
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Looking to Get into NVIDIA But Options Are Too Pricey? Here's How to Open a Position with Lower Cost
$NVIDIA (NVDA.US)$'s options trajectory has been under intense scrutiny lately, with the past month alone witnessing it occupying a quarter of the options market.
Apart from those bullish on NVIDIA throughout this year, many Mooers here also believe that NVIDIA's downtrend isn't over yet: fundamentally, as its size increases, sustaining high-profit growth becomes challenging, insufficient to sup...
Apart from those bullish on NVIDIA throughout this year, many Mooers here also believe that NVIDIA's downtrend isn't over yet: fundamentally, as its size increases, sustaining high-profit growth becomes challenging, insufficient to sup...
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![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined"){kind=small}
1. In a hot market, there are abundant opportunities, even for options sellers.
Shorting volatility, although akin to grabbing a hot coal, can be profitable if managed well. The volatility of $Super Micro Computer (SMCI.US)$ is excessively high; there are even trades for 1800 call options at expiration. Obviously, this strike price is unattainable, but due to the high volatility, there's a significant risk of interim losses. Position control is crucial; one must avoid being liquida...
Shorting volatility, although akin to grabbing a hot coal, can be profitable if managed well. The volatility of $Super Micro Computer (SMCI.US)$ is excessively high; there are even trades for 1800 call options at expiration. Obviously, this strike price is unattainable, but due to the high volatility, there's a significant risk of interim losses. Position control is crucial; one must avoid being liquida...
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First, I advise those who wish to trade options should learn to use Greeks. Second you should practice using papertrade before you try the real one. Third you should know the risk before trading options especially selling options where loss can be unlimited. If you find confusing using Greeks, I recommend 3 sources:
1. Investopedia
https://www.investopedia.com/trading/getting-to-know-the-greeks/
The language used is easy to unders...
1. Investopedia
https://www.investopedia.com/trading/getting-to-know-the-greeks/
The language used is easy to unders...
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In a recent disclosure, US Representative Nancy Pelosi reported buying call options for Palo Alto Networks (NASDAQ: PANW), with trades executed on February 12th and 21st.
These options, which are Long-term Equity Anticipation Securities (LEAPS), have a strike price of $200 and are set to expire on January 17, 2025.Pelosi invested a substantial amount, withthe option premium totaling between $600,000 and $1,250,000.
After the disclosur...
These options, which are Long-term Equity Anticipation Securities (LEAPS), have a strike price of $200 and are set to expire on January 17, 2025.Pelosi invested a substantial amount, withthe option premium totaling between $600,000 and $1,250,000.
After the disclosur...
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Hello everyone and welcome back to moomoo. I'm options explorer![]()
. In today's [Options ABC], we'll be taking a look at out-of-the-money (OTM) options.
Wordcount: 2000
Target Audience: Investors who are interested in OTM options trading.
Main Content: What are the advantages and disadvantages of OTM options? What should you do when trading OTM options?
OTM options should not be an unfamiliar topic for option investors. On the one ...
Wordcount: 2000
Target Audience: Investors who are interested in OTM options trading.
Main Content: What are the advantages and disadvantages of OTM options? What should you do when trading OTM options?
OTM options should not be an unfamiliar topic for option investors. On the one ...
![[Options ABC] What Are Out Of The Money Options? A Case Study of PDD](https://ussnsimg.moomoo.com/77777077/editor_image/e217773bf39c3813ae0c16d98a97998a.png/thumb)
![[Options ABC] What Are Out Of The Money Options? A Case Study of PDD](https://ussnsimg.moomoo.com/77777077/editor_image/495f661028643b2fb765a3ed0037c4fe.png/thumb)
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Sold some spy calls this morning and was looking for an nvidia bounce. Sold for a small loss but even as of now they are still lower because of theta decay. Hope everyone made money. I am looking around the market for a play next week.
I really do want to short spy, but I think with the debt ceiling bill going to bidens desk, and everyone speculating that we will pause in June, it might not be the time.
I think monday, if there is no outstanding positive news, the market might cool off a m...
I really do want to short spy, but I think with the debt ceiling bill going to bidens desk, and everyone speculating that we will pause in June, it might not be the time.
I think monday, if there is no outstanding positive news, the market might cool off a m...
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warrior-sailormoon : I love u to the max
ReStart Hope : Thanks @iamiam! A good summary, I learnt options trading but very weak in the Greeks. Tried 0dte and short term options and got burned. Now I always get longer expiry options to avoid theta decay, and still able to profit nicely (20% instead of more than 100%). I guess for me it is much safer and lesser worries and no need to keep staring at the screen, just let my analysis and trend goes their way in a few days or even weeks.
warrior-sailormoon : I m 100% for sure i will i need to i hav to ……. Going to read ur post when all my kids in their sleep
warrior-sailormoon : Thousand of Thanks to u for ur great sharing Iamiam
mrbenje : Super helpful, thanks
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