Although I’ll turn gray 👵🏼 by the time Moomoo developers integrate option strategies, I feel obligated to my 1.2k followers to share something they can actually make money off, thus I’ll write about it anyway.
As you all know, the options decay every day. Therefore buying an option might be not the best strategy, as, unless the price of the underlying stock moves in the desired direction quickly and/or significantly, you will end up loosing money.
I’m here to make money, thus I sell options instead.
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As you all know, the options decay every day. Therefore buying an option might be not the best strategy, as, unless the price of the underlying stock moves in the desired direction quickly and/or significantly, you will end up loosing money.
I’m here to make money, thus I sell options instead.
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17 to 117 days - how long will it last this time?
Open discussion - share your opinion below.
P.S. great data Moomoo News Team!
Open discussion - share your opinion below.
P.S. great data Moomoo News Team!
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There is an arrow to turn Time & Sales pre-market after hours. I’ve noticed that if I turn them on, they stay on during Market hours too. Is there a way to turn Time & Sales on during market hours?
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Buy .01 above the bid, sell .01 below the ask
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2020 was my first full year of trading and it was challenging with the coronavirus, elections, artificial tech bubble by SoftBank, trade war, lockdowns and stimulus bill talks. Others were saying that experience-wise one year in this market should be counted as three and I can’t agree more! Thus, congrats to everyone whose account survived the turbulence.
Some of my successful strategies from 2020:
1. FDA pre-PDUFA runs (top gainers #1 AQST, #4 ADMP). I use the following calendar https://www.biopharmcatalyst.com/calendars/pdufa-calendar to buy 2-3 months before the PDUFA date and sell about 3 weeks before the PDUFA date
2. Good earnings anticipatory run. I’m signed up for free “Most Anticipated Releases for the Week...
Some of my successful strategies from 2020:
1. FDA pre-PDUFA runs (top gainers #1 AQST, #4 ADMP). I use the following calendar https://www.biopharmcatalyst.com/calendars/pdufa-calendar to buy 2-3 months before the PDUFA date and sell about 3 weeks before the PDUFA date
2. Good earnings anticipatory run. I’m signed up for free “Most Anticipated Releases for the Week...
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When company issues additional shares it causes the dilution. In most cases (exceptions are listed at the end of the article) it leads to the significant drop in the share price.
If the offering is priced already — that’s usually the level current share price will drop to (in some cases even below that level).
If the offering is not priced, but the size is announced in total $ amount or quantity of new shares to be issued, you can do the math. Total $ amount vs market cap or new shares vs existing shares, — that’s pretty much the % the stock price would drop by.
To avoid huge volatility during market hours, companies usually announce the offering after the market is closed (after 4PM). That’s the time when I start monitoring the news. I use Squawk Box and Breaking News board from Transparent Traders https://www.transparenttradersblackbox.com/?afmc=54, Moomoo News board,
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If the offering is priced already — that’s usually the level current share price will drop to (in some cases even below that level).
If the offering is not priced, but the size is announced in total $ amount or quantity of new shares to be issued, you can do the math. Total $ amount vs market cap or new shares vs existing shares, — that’s pretty much the % the stock price would drop by.
To avoid huge volatility during market hours, companies usually announce the offering after the market is closed (after 4PM). That’s the time when I start monitoring the news. I use Squawk Box and Breaking News board from Transparent Traders https://www.transparenttradersblackbox.com/?afmc=54, Moomoo News board,
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1) Option strategies
It’s the only reason why I still use Robinhood (and hate it). I’m Moomoo’s biggest fan, but even WeBull has implemented them and Moomoo hasn’t
2) Time and sales records available during the day, not only pre-market and after hours
3) Ability to create custom indicators for scanners, watchlists and charts and also make them available to other Moomoo users (like TradingView)
4) Wash sale warning
5) Face ID
6) Fractional shares
7) OTC stocks and cryptocurrency trading
8) Basic stock info: market cap, shares outstanding, float, short float
9) Pending/paid dividents records, ability to rein...
It’s the only reason why I still use Robinhood (and hate it). I’m Moomoo’s biggest fan, but even WeBull has implemented them and Moomoo hasn’t
2) Time and sales records available during the day, not only pre-market and after hours
3) Ability to create custom indicators for scanners, watchlists and charts and also make them available to other Moomoo users (like TradingView)
4) Wash sale warning
5) Face ID
6) Fractional shares
7) OTC stocks and cryptocurrency trading
8) Basic stock info: market cap, shares outstanding, float, short float
9) Pending/paid dividents records, ability to rein...
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I’m grateful to Moomoo for the reliable platform (especially during the first 30 mins after the market opens when all others - Thinkorswim, Robinhood and WeBull - are frozen) and all the useful and somewhat unique (again, comparing to other platforms) features that allowed me to achieve impressive financial results.
The holidays are about giving back, therefore I decided to dedicate this pre-holiday evening to contribute to the financial success of Moomoo community.
1. Customized company name
My favorite feature: replace the company name with your own notes (price targets, catalyst dates, support/resista...
The holidays are about giving back, therefore I decided to dedicate this pre-holiday evening to contribute to the financial success of Moomoo community.
1. Customized company name
My favorite feature: replace the company name with your own notes (price targets, catalyst dates, support/resista...
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). Greatly appreciated!!!
of an analyst, I’m financial analyst myself 
- the right token would be @finance_analyst .
Both types of stop loss orders are used to prevent massive financial loss from the transaction.
Fixed stop loss is triggered when the price drops (or rises if you are short) to the certain dollar amount (to $100 for example). Trailing stop loss is triggered when the price drops (rises if short) by certain dollar amount (by $10 for example) or certain percentage (by 2% for example).
When just opened a position I prefer to set a fixed stop loss just a bit below the support line (or resistance of I’m shorting the stock) to protect me in case the stock breaks through and enters free fall (or shoots up in short squeeze when I’m shorting).
If the trade goes well and I’m in profit, I will move the fixed stop loss price to my entry price (= cost), so that if the trade turns against me, worse case scenario I’ll break even.
If the trade continues to run in my favor, I will replace my fixed stop loss order with the trailing stop (sell if falls by 2% - determine the % based on current price fluctuation- just a bit more than the organic move) to let my winner run till it doesn’t.
P.S.: if your account is a subject to PDT rule, stop loss order (if filled) still counts as a day trade if you opened the position today, so watch out for that
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Fixed stop loss is triggered when the price drops (or rises if you are short) to the certain dollar amount (to $100 for example). Trailing stop loss is triggered when the price drops (rises if short) by certain dollar amount (by $10 for example) or certain percentage (by 2% for example).
When just opened a position I prefer to set a fixed stop loss just a bit below the support line (or resistance of I’m shorting the stock) to protect me in case the stock breaks through and enters free fall (or shoots up in short squeeze when I’m shorting).
If the trade goes well and I’m in profit, I will move the fixed stop loss price to my entry price (= cost), so that if the trade turns against me, worse case scenario I’ll break even.
If the trade continues to run in my favor, I will replace my fixed stop loss order with the trailing stop (sell if falls by 2% - determine the % based on current price fluctuation- just a bit more than the organic move) to let my winner run till it doesn’t.
P.S.: if your account is a subject to PDT rule, stop loss order (if filled) still counts as a day trade if you opened the position today, so watch out for that
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A short answer is no (below I explain why). But there are ways around it (below I explain how).
A classic stop loss (=if triggered sell immediately for any price) doesn’t work outside of market hours (4AM to 9:30AM and 4:00PM to 8:00PM) because it triggers market order and only limit orders are permitted outside of market hours due to wide bid/ask spreads.
The solution would be a conditional order (not all brokers offer it, I trade with Moomoo)
Example.
Need to set a stop loss of $110 for my 10 shares of AAPL that will work outside of market hours as long as I’m holding the position.
Go to Conditional orders. “If falls to $110, sell at limit price of $108 (allowing $2 slippage: it will sell for the best price available not lower than $108, but if there are no buyers for $108 and higher it wouldn’t sell then; if you need to sell for any price, put $1 then), 10 shares, 30 days expiration (can chose: today, tomorrow, 1 week, 2 weeks, 30 days), allow to fill outside of market hours.
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A classic stop loss (=if triggered sell immediately for any price) doesn’t work outside of market hours (4AM to 9:30AM and 4:00PM to 8:00PM) because it triggers market order and only limit orders are permitted outside of market hours due to wide bid/ask spreads.
The solution would be a conditional order (not all brokers offer it, I trade with Moomoo)
Example.
Need to set a stop loss of $110 for my 10 shares of AAPL that will work outside of market hours as long as I’m holding the position.
Go to Conditional orders. “If falls to $110, sell at limit price of $108 (allowing $2 slippage: it will sell for the best price available not lower than $108, but if there are no buyers for $108 and higher it wouldn’t sell then; if you need to sell for any price, put $1 then), 10 shares, 30 days expiration (can chose: today, tomorrow, 1 week, 2 weeks, 30 days), allow to fill outside of market hours.
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finance_analyst OP Kenneth-CJ : Thank you. I hope others can benefit from it too
finance_analyst OP Pauletta Kelly : Thank you! Likewise!
finance_analyst OP Mike Hunt : Capital used. 1 AAPL put (1 month out) is $465, 100 shares is $14,300
finance_analyst OP Mike Hunt : No problem. Your example doesn’t make much sense to me thought as the upside is unprotected. Once the stock price goes up, your put becomes worthless, but you are still obligated to provide 100 shares of the underlying stock (by buying them from the market at the increases price).
Let’s use same AAPL example. So you buy $143 put (-$465) and sell $143 call (+$453).
One month later AAPL is at $150, your put is worthless and your loss is ($150-$143)*100+12=712
Brokerage shouldn’t let you place this transaction unless you have underlining shares as there can’t be cash collateral for unlimited risk
finance_analyst OP Mike Hunt : How do you know they don’t hold underlying asset?
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