English
Back
Download
Log in to access Online Inquiry
Back to the Top
Tesla snatched biggest gain in 11 years: How long will the rally last?
Views 1.9M Contents 690
avatar
没有咖啡的吃茶店 joined discussion · Oct 25, 2024 18:14

Options surged by 1600%! How to replicate the high return of options?

Last night, a friend asked me what options are?
I responded: it may beThe lbx pharmacy chain joint stock can achieve financial freedom by seizing 2-3 opportunities, it could also be something that makes people loseTo lose everythingThis thing can be your thing as well.Tools for hedging risks.。
The key lies in your own mindset and way of playing.And this is the charm of options.
P.S.: This is last night $Tesla (TSLA.US)$ Finally cashed in gains from options last night. Today saw many big players sharing huge wins in the community. I may not have made the most profit or had the highest return, but staying up all night was worth it.
Options surged by 1600%! How to replicate the high return of options?
In options trading, there are many cases where buying an options contract results in a tenfold, twentyfold, or even hundredfold increase, allowing you to strive for 'financial freedom' with just a few dollars.
For example, in September, $PDD Holdings (PDD.US)$ Increased by over 5000% in one day. $Super Micro Computer (SMCI.US)$ with a maximum increase of nearly 8000% in 3 days.
Options surged by 1600%! How to replicate the high return of options?
How to find the upside potential among numerous options?
Opportunities to make money are rare. As a buyer, how to screen out options with upside potential in the complex options market? This article combines personal and friends' experiences to organize and share the following strategies:
1 idea + 2 indicators to quickly get started with options
1. The core difference between options and stocks:time equals money
Stocks: Buying at a high price will definitely not make any profit.
However, options are different: even if the exercise price for the buyer is higher than the stock price, it is still possible to make a profit. Because,Options include the economic benefits of time in pricing. The economic benefits of time can be understood as the possibility of turning defeat into victory.For example, in a sports game, the longer the remaining time, the greater the possibility of the score being equalized or reversed; the shorter the remaining time, the winning probability will gradually diminish.
For stocks, as long as they are not delisted, they can be held indefinitely, actually waiting for the time effect later, waiting for the possibility of turning defeat into victory. Options are different, as they calculate the economic effect of time in advance. At every moment before expiration, time is converted into money and reflected in the option premium. Therefore, it is possible for stocks to rise by 20%, while options can increase by 5000%.
2. In options trading, how do you price time?
Mainly look at two indicators:Time decay, Implied Volatility (IV)
Time decay:Time passing is irreversible, with the option value decreasing by one point each day. The closer it gets to the expiry date, the greater the time decay, shown by the Theta indicator as daily decay.
Options surged by 1600%! How to replicate the high return of options?
Implied Volatility (IV):Measuring the market's expectation of future price volatility, it is one of the important factors in option pricing.
Second, which options have the potential for an increase?
Choose an option with explosive potential, focusing on three aspects:Stock volatility, current IV status, option Vega
1.Stocks themselves have large fluctuations.
Assets with high volatility typically offer larger price swings, and option prices will also fluctuate accordingly. Simply put, it is about selecting an underlying symbol with potential. If the stock itself is not strong enough, it's impossible to turn defeat into victory.
Share 3 methods to explore stocks with large price fluctuations:
(1) Based on experience,Choose stocks with a history of high volatility.
For example, in a bull market, individual stocks in the brokerage sector will soar; when A-shares rebound, Chinese concept stocks will surge.
Options surged by 1600%! How to replicate the high return of options?
（2）关注近期热点板块、热点个股
美股从不缺热点，热点股的涨幅绝对不会差。热点获取渠道，推荐关注富途资讯信息，推送热点非常及时，且具有前瞻性。5月meme股暴涨，看到富途推送，成功夜盘上车。此外，富途APP上能找到当日高收益率的板块和个股。从中挑选自己看得懂的个股，用技术指标判断后市上涨概率。
Options surged by 1600%! How to replicate the high return of options?
（3）关注财报季上涨机会
During the earnings season, stock prices can easily fluctuate greatly. For example, last night Tesla's earnings data exceeded expectations, and immediately cashed in on the bullish information in the night market today.
Options surged by 1600%! How to replicate the high return of options?
2. Choose low IV options.
赌马时候怎么赚更多？选择潜在黑马而非热门选手。押注黑马便宜，且回报高；热门选手价格贵，且收益低。期权同理，Low IV options are the dark horses to look for.Because options with low IV are usually cheaper, buyers can buy them at a lower cost to protect the overall interests of the investment portfolio, and options with low IV have a better risk-reward ratio. As mentioned above, options calculate the economic benefits of time through IV. When market volatility increases or stock asset prices fluctuate significantly, the value of these options may increase significantly.
How to chooseOptions with low IV？Take the companies in the S&P 500 index as an example, $Tesla (TSLA.US)$ For example. First, you need to know what the normal level of IV is. The overall IV of TSLA in the past 30 days is 63.74%, with a historical average HV of 42.56%.
Options surged by 1600%! How to replicate the high return of options?
Then go back to the options chain and look for implied volatility currently lower than HV.
Options surged by 1600%! How to replicate the high return of options?
Currently, as it is after earnings reports, both the IV of Tesla options are relatively high, not suitable for buying. You can use this method to try to find other options for investment targets.
3. The options Vega value is relatively large.
The change in IV will impact Vega and feedback to the options premium. For example, in the following TSLA options chain, if IV increases by 10%, the options price will increase by 0.555 (10*0.0555).
Options surged by 1600%! How to replicate the high return of options?
With the same IV changes, the higher the Vega, the greater the amount feedback to the options.
- In summary:
When choosing options with more than tenfold increase, you mainly consider 3 points, in order:
1. Choose assets with high volatility.
2. Look for options with low implied volatility.
3. Choose options with relatively large Vega.
There are many opportunities for options to increase tenfold, but it is difficult to discover these opportunities and hold on firmly until the profits are realized. Newton likened himself to a child picking up shells in the sea of truth. In investing, aren't we all the same?
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only. Read more
18
151
3
3
1
2
+0
15
See Original
Report
251K Views
Comment
Sign in to post a comment

View more comments...

avatar
没有咖啡的吃茶店
越努力越幸运吗？
1048
Followers
27
Following
2277
Visitors
Follow
Heat List
US
SymbolMini ChartPrice
TSLA
Tesla
-- 355.840
NVDA
NVIDIA
-- 138.850
INTC
Intel
-- 23.600
NBIS
NEBIUS
-- 44.490
PLTR
Palantir
-- 119.160
Discussing
Trump 2.0 Era: How will global markets evolve?
🎙️Discussion: 1. How will tariff policies affect the movement of key assets such as U.S. stocks, gold, and Bitcoin? 2. Given this context, Show More
MicroStrategy Q4 2024 earnings conference call
Monetary Policy: Navigating the Fed's Rate Cut Cycle
Changing Fed policy is altering the market math for investors.