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Aaron Invests (AI) wrote a post ยท Sep 24 05:38

When Moomoo options comes into Malaysia I am so hyped. ๐Ÿš€ ๐Ÿš€ Money printer go Brrrrrr......๐Ÿค‘๐Ÿค‘๐Ÿค‘

Hey Mooers!
All this while all I could say is I had been studying the theory of options but never get a chance to implement it.
Thanks to Moomoo I am do excited that I had started to trade options on the first day.
This is how enthusiastic I am! ๐Ÿ˜๐Ÿ˜๐Ÿ˜
This is how enthusiastic I am! ๐Ÿ˜๐Ÿ˜๐Ÿ˜
So each time they said when you buy a share you always lose.
But what if I tell you that in any direction in the market, is harder to lose when you have options.
So to new comers what is options you may ask?
Options simply means a contract of rights but not an obligation to execute it.
Options are traded in contract. Each contract of 1 option = 100 units
There are 2 types of options call options and put options
So if you buy a call option, you have the rights but not the obligation to buy the shares in the future date until expires.
If you buy a put option it is the rights but not the obligation to sell the shares in a future date.
For further details about options you may learn from Moomoo tutorials below
Options Quickstart Guide
How to Trade Options: A Course For Beginners Overview
Now I am more of a intermediate with options sooooo.
Disclaimer: Remember! this is not Financial advice but education purpose.
The first strategy that I had decided to implement is a covered combo strategy. Ie placing a covered call and a cash secured put on my shares on $MARA Holdings (MARA.US)$ digital.
The rationale behind this is that i believe that the shares will be going sideways for this week and may or may not go up or down. While waiting I decided to issue a sell call option and a sell put option on the shares. Moderately bullish.
The condition to use this strategy is that i have at least 100 units of shares and cash value that is able to buy 100 units more of this shares.
When Moomoo options comes into Malaysia I am so hyped. ๐Ÿš€ ๐Ÿš€ Money printer go Brrrrrr......๐Ÿค‘๐Ÿค‘๐Ÿค‘
Ok this is where I am getting subtle here. So right now when the price goes slightly higher, I decided to create a covered call. That means I will collect the premium first. If the person decide to exercise at $17 strike price I have to let go of my shares. So here I will be collecting $23 worth of premium.
So when the price goes down a little, I decided to sell a cash secured put. If the price goes down to $15, I have the obligation to buy thier shares. However, for now I collect the premium at $33
So here I have a total premium collected of $56 by the end of Friday.
So what happens if :
Price goes between 15 and 17?
I collect the $56 premium
Price goes above $17?
The shares will be sold at $17 I lose 100 shares. Tho I will still make a profit of $92 from the capital gain.
I still Keep the premium
Price goes below $15?
I will be forced to buy 100 shares worth $1500 and a capital depreciation so now am at a capital loss of $108
Still keep the premium.
So what can I conclude here?
For starters with the limited amount of cash and being conservative. Instead of becoming a buyer of option, I'd rather be the seller! Of options.
And what happen in my Sept month after options are available? I am getting better and slowly out performing the market from what I had loss.
Almost beat STI! ๐Ÿ˜
Almost beat STI! ๐Ÿ˜
Alright folks I hope you learnt some insights strategy from my live trades. Good Luck ๐Ÿ€ May your trades be ever in your favour to riches! ๐Ÿš€ ๐Ÿš€
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only. Read more
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Aaron Invests (AI)
Casual and Social ๐ŸฑTrader and investor. โœ… chartist for Trades โœ… Financial reporter โœ… Scalpers โœ… Swinger
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