My top-3 option strategies
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.
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.
I’m gonna share three scenarios, each one accompanied by my favorite strategy.
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Scenario #1: Currently holding the stock till it reaches my target price.
Strategy for #1: Selling covered calls
Sell weekly/monthly call options with the strike price = my target price.
Weekly calls are better as they decay faster and you will make more money selling them (think of renting your apartment weekly vs monthly: weekly is more profitable), but not all stocks have weekly options available
Scenario #1: Currently holding the stock till it reaches my target price.
Strategy for #1: Selling covered calls
Sell weekly/monthly call options with the strike price = my target price.
Weekly calls are better as they decay faster and you will make more money selling them (think of renting your apartment weekly vs monthly: weekly is more profitable), but not all stocks have weekly options available
Example for #1: holding 100 shares of AAPL that I plan to sell for $155 (current price is $154). I will sell 155 call expiring this week and collect $127 premium. That’s my profit. If AAPL doesn’t reach $155 this week, the call I sold will expire worthless and I’ll sell $155 call next week again. If the call is in the money I will have to give my shares out but, well - I planned to sell them for $155 anyway. Win-win.
Scenario #2. I don’t have shares of a company, but would like to buy them once the stock drops to my desired price.
Strategy for #2. Selling cash secured puts
Sell weekly/monthly (weeklies are better) put options for the strike price = my desired price.
Example for #2. I would like to buy 100 shares of AAPL once the price drops to $150 (currently $154). I will sell $150 puts expiring this Friday collecting $43 premium. That’s my profit. If the price doesn’t drop to $150, the puts I sold will expire worthless and I will sell the puts next week again. If the price does drop to/below $150 I will have to buy AAPL for $150, but that’s what I was planning to do anyway. Win-win.
It’s Warren Buffet’s favorite strategy, by the way
Scenario #3. I don’t hold or planning on buying a stock, but I have a strong feeling (based on technical analysis) that the price will go up
Strategy for scenario #3: selling put spreads
Since I’m not planning to own a stock; in order to protect the down side, additionally to selling a put I will have to buy a put for a strike one or few points below, limiting my risk to the difference between two legs
Example for #3. I don’t think the AAPL price will drop below $150 short term. I will sell $150 put expiring this Friday and buy $145 put expiring same Friday. Total premium collected is $27. Now my risks are limited to ($150-$145)*100-$27 (premium I collected).
I also have a stop loss for options to sell them once they lose 50% of value (got that after Adam Khoo), thus my risk is (($150-$145)*100)/2-$27 (premium I collected)
Trade from last week: on Moday 8/30 sold to open 280/275 PYPL credit put spread for $65, that expired wortless on Friday 9/3:
All illustrations are from my all time favorite Options Playbook https://amzn.to/3tmbQbe
P.S. Options are high risk high reward instruments not to be traded without basic knowledge. Stocks are more forgiving.
免責聲明：社區由Moomoo Technologies Inc.提供，僅用於教育目的。
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Kenneth-CJ : 感謝您的分享，「雙贏」在您的分享中出現了很多次，希望大家都能做到！
finance_analyst 樓主 Kenneth-CJ : 謝謝你我希望其他人也可以從中受益
Pauletta Kelly : 謝謝你，我很高興能夠分開這個偉大的機會。
finance_analyst 樓主 Pauletta Kelly : 謝謝！同樣！
Mike Hunt : 很好的東西關於合成短期權策略有什麼優勢，即出售買賣買賣期權並以相同的行使價購買相同數量的售股期權，並且兩個期權都在相同的到期週期中購買相同數量的賣盤期權。這樣做，而不是以正常方式賣空 100 股股的股票有什麼好處？
finance_analyst 樓主 Mike Hunt : 使用資本。1 個 AAPL 出售（1 個月出售）為 465 美元，100 股為 14,300 美元
Mike Hunt finance_analyst 樓主 : 哦。謝謝你指出我錯過的顯而易見
finance_analyst 樓主 Mike Hunt : 沒問題你的例子對我來說並不太有意義，因為上面是不受保護的。一旦股價上漲，您的投資將變得無價值，但您仍然有義務提供 100 股的相關股票（通過以上漲價從市場購買）。
讓我們使用相同的 AAPL 示例。因此，您購買 143 美元的投注（-465 美元），並出售 143 美元的通話（+ 453 美元）。
一個月後，AAPL 為 150 美元，您的投資無價值，您的損失為（150 美元至 143 美元）*100+12=712
經紀人不應允許您進行此交易，除非您有強調股份，因為不能提供現金抵押品以無限風險
Mike Hunt finance_analyst 樓主 : 這不是我會做的交易。這是我見過的一個顯然是機構的，這兩筆交易的總數約為 28 萬
Mike Hunt : 我指的是頁面下方的交易
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