Moomoo options, covered calls and cash secured puts
hi everyone,
I just recently learnt about options and wanted to give a try on the US market paper accounts. First I noticed that Moomoo has a US Stock Paper Trading account ($1m) and a US Options Paper trading account ($1m). At first I thought it’s the same account as other brokers do but somehow these are 2 different accounts. So far I’m only able to buy/sell stocks on the stock account and trade options on the options paper trading account. what I do in one won’t affect the other. for example, referring to the last picture, on 13/01/22 I sold 10 cash secured puts options contract of TSLA strike price $930 expiry 28/1/22. then on 28/1/22 TSLA closed in the money at around $900, which meant I would have been forced to buy 10x100 stocks of TSLA at 930, which should cost me $930,000 and providing me with 1000 stocks. However, nothing happened. On 29/1/22, the system automatically bought the puts contract back as you can see from the screenshot. but I neither lost money nor was I assigned to get 1000 TSLA shares.
this is different from other brokers, who uses one account for both stocks and options. e.g i tried the same move on another broker with selling 1 put contract of TSLA also at 930 on 28/1/22. on 29/1/22 the system had automatically bought 100 shares of TSLA at 930 and deducted 93000 from my cash balance. so I seek explanation from anyone. is this how options on moomoo works?
or what did I do wrong here? hopefully someone can clarify the situation. please refer to the attached screenshots. thanks in advance😌
I just recently learnt about options and wanted to give a try on the US market paper accounts. First I noticed that Moomoo has a US Stock Paper Trading account ($1m) and a US Options Paper trading account ($1m). At first I thought it’s the same account as other brokers do but somehow these are 2 different accounts. So far I’m only able to buy/sell stocks on the stock account and trade options on the options paper trading account. what I do in one won’t affect the other. for example, referring to the last picture, on 13/01/22 I sold 10 cash secured puts options contract of TSLA strike price $930 expiry 28/1/22. then on 28/1/22 TSLA closed in the money at around $900, which meant I would have been forced to buy 10x100 stocks of TSLA at 930, which should cost me $930,000 and providing me with 1000 stocks. However, nothing happened. On 29/1/22, the system automatically bought the puts contract back as you can see from the screenshot. but I neither lost money nor was I assigned to get 1000 TSLA shares.
this is different from other brokers, who uses one account for both stocks and options. e.g i tried the same move on another broker with selling 1 put contract of TSLA also at 930 on 28/1/22. on 29/1/22 the system had automatically bought 100 shares of TSLA at 930 and deducted 93000 from my cash balance. so I seek explanation from anyone. is this how options on moomoo works?
or what did I do wrong here? hopefully someone can clarify the situation. please refer to the attached screenshots. thanks in advance😌
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Baby Joe Mesi : Learned*. Just a recommendation. "Learnt" does not come off very well just fyi.