TSLA
Tesla
-- 421.060 PLTR
Palantir
-- 80.550 NVDA
NVIDIA
-- 134.700 AMD
Advanced Micro Devices
-- 119.210 MSTR
MicroStrategy
-- 364.200 
Bull in a Bear market, Earnings play option strategy.
Disclaimer: This should NOT be used as financial advice but rather just my personal learning experiences summarized into points.
Starting Options
Behind every success story is always a failure first. I was only trading stocks until mid-July (I was up ~10% in 4 months), when I was first introduced to options by a friend I met on MooMoo. I was clueless as to what he was talking about. Every option term he talked about, eg, IV crush and theta decay, I did not understand. It was like a primary school kid listening to a lecture about calculus. It was not until I experienced options firsthand that I was able to slowly piece together well what he meant. However, this came at a hefty cost.
Going from 8k USD to 6k USD on my first options trade
My first options trade was a hefty "tuition fee" of almost 2k USD as my 10% gain became a net loss of almost -20% over 3 nights. I played with DJT puts on the day Donald Trump was shot, and I bought Puts that were far OTM and near to the expiry, as I thought they were cheap then. Even when DJT was falling, the value of my puts was not increasing because of the IV crush and how far it was from the strike price. This was when I realised my mistake and started doing some research.
How I turned around my portfolio losses.
If you ask me if I was devastated, yes, I was. But I did not stop there and took this as a learning experience. Now that I understand a bit of options, I can combine what I learnt from the stock market into options - USING A COMPANY'S FUNDAMENTALS. I was threading on very thin ice then as I did not want to risk losing even more of my capital as my mentor always said to
Always preserve your capital. If you lose 50% of your capital, you have to earn back 100% of what you have left to break back even.
Thus, I took advantage of this opportunity to test my theories.
Was Tesla a good company? Yes
Is Tesla still a good company? Questionable
I took this opportunity to buy Tesla puts as an increase in stock price from 140+ USD to almost doubling in value was too much of a stretch for a company slowing down in revenue and decreasing in cash to debt ratio since 2023. Driven by hype for the RoboTaxi, I figured Tesla was not exactly what was advertised as Elon Musk as an "AI company," but rather an automotive company. I took these fundamentals I knew to buy Tesla puts and when the earnings came out, they missed EPS, as well as the delay of RoboTaxi news, which made me able to double 1.2k USD worth of puts to 2.4k USD.
This gave me back my confidence to continue trading options.
Intel, "a king who lost his throne" in the Semi-con industry, was a huge opportunity to test my theory again. Intel turned from a profitable company to a losing company ever since they started losing their edge on AI.
Here are some self-explanatory infographics.
Even some guy on TikTok said
Intel so cooked their CEO started praying
With this information, I bought Intel puts at-the-money. When earnings were announced, Intel did not meet expectations and also suspended dividends, which allowed me to grow my 1.5k USD worth of Intel, which puts to above 10k USD.
Learning Point from Intel
Although I managed to profit around 500% from my puts, I saw someone profit 1000% from his.
How?
He bought the puts out-of-the-money (OTM) in the expected direction of movement of the stock he thought was going to move in. This allowed him to buy the puts without much capital while allowing him to earn more when the put becomes in-the-money. Although it is a riskier move, one would be expecting a very huge movement in stock, at least 10%, for a far OTM put to be profitable. Thus, I decided to buy options slightly OTM for a better risk-to-reward ratio.
Now, for the company I profitted the most, Fortinet was a company that I saw had strong fundamentals. Likewise, I used the company's fundamentals to play on their earnings again. Although there may be some struggles over earnings in some quarters, it's was still able to grow YoY while the value of the stock continued to fall and stagnate. I saw this as a major opportunity to play Fortinet's earnings as though it was a gold bar on a clearance sale, which made me buy Fortinet calls.
Here are some quick statistics of Fortinet.
This time, I bought afew OTM calls, which made me profit 800% from what I put in.
An unexpected factor, LUCK.
*this panel was too cold not to add in*
Honestly, Luck also plays a huge part in playing in the earnings option. Not everyone can accurately predict how much a stock is going to rise or fall. Some even use AI to predict the expected movements of a stock. For example, I only expected Fortinet to move about 10% while they managed to gain over 20%. What I'm trying to imply is that you can predict the movement of a stock, but you can't really predict how much it is going to move surely. Thus, it really depends on luck as to how much you will profit.
Here are my transactions within 1 month so far.
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Also, always remember to remain humble and treat yourself once in a while.
Keep in mind, not every day will be profitable, and losses are normal some days.
Thank you for reading all the way until here.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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73629223 : Amazing! congratulations and look forward to learning more from you!
mrmerk81 : So fantastic content! Looking forward to your continued sharing!
Euler007 : learn from you![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
options are too hard for me right now...
slam-dunk-1 : What do you think of the current $NVIDIA (NVDA.US)$ , is it worth buying?
101764215Moi : Yes, luck is important beside IQ! Your method of playing is very stressful ya!
CNNT : Very informative. Thanks.
DouGiee OP slam-dunk-1 : i think should wait until after earnings as i think semiconductors stocks are very cyclical
Kasin : Thanks for your sharing!!!
Exactly : Take my money bro
Ashley69 : I still don't understand a word of options
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