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Sell slightly OTM options for stocks that went down recently.
Easy profit in a few days.
$Tesla(TSLA.US$
Easy profit in a few days.
$Tesla(TSLA.US$
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Options are like a gameplan to boost your gains 💰 and keep your losses in check 💸, no matter what's happening in the market. When things are looking up 📈, you can sell calls. When the market's going down 📉, selling puts on stocks you want to own is the move.
👉🏻 TLDR for potential rewards and risks: you pocket the option premium upfront 🤑 but remember, you're on the hook for potential losses if the market doesn't play nice to your predictions. 🙈
My go-to ta...
👉🏻 TLDR for potential rewards and risks: you pocket the option premium upfront 🤑 but remember, you're on the hook for potential losses if the market doesn't play nice to your predictions. 🙈
My go-to ta...
When do you sell options?
When the stock market is bearish, we can sell calls to earn premium by selling high now and buying low when the premium falls later.
When the stock market is bullish, we can sell puts to earn premium by selling high now and buying low when the premium falls later.
What are the risk of selling options?
It's VERY RISKY to sell options because your loss is unlimited.
For selling calls, you'll be forced ...
When the stock market is bearish, we can sell calls to earn premium by selling high now and buying low when the premium falls later.
When the stock market is bullish, we can sell puts to earn premium by selling high now and buying low when the premium falls later.
What are the risk of selling options?
It's VERY RISKY to sell options because your loss is unlimited.
For selling calls, you'll be forced ...
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I just made out pretty decently on a put. I had 100 shares and bought a protective put. The stock started talking and I was worried until I remembered the put! It ended up paying out almost $0.20 per share on the strike price versus the current market price at the time of exercise!
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One of my favorite options strategy is the Wheel Strategy! 🛞 I have been trading the strategy for over a year and have been enjoying good profits “if done in the right way”. so here is my version of the wheel strategy, I call it - OWS+ (Options wheel strategy plus) income strategy
My OWS+ Rules - 1) Only do this on fundamentally great companies or ETF you don’t mind holding for long term. 2)Preferably undervalued underlying 3) Ris...
My OWS+ Rules - 1) Only do this on fundamentally great companies or ETF you don’t mind holding for long term. 2)Preferably undervalued underlying 3) Ris...
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A) Potential risk in selling options
1. Selling option is more risky than buying option
- by virtue that the seller is at the mercy of being assigned to fulfill the contract when the buyer exercise his rights to buy or sell the stock. While buyer has the exercise right to buy or sell the stock, seller has no such right but is instead obliged to fulfill the contract (ie has no choice to walk away but can only accept the assigment).
2. Selling naked option
a. sell put option with...
1. Selling option is more risky than buying option
- by virtue that the seller is at the mercy of being assigned to fulfill the contract when the buyer exercise his rights to buy or sell the stock. While buyer has the exercise right to buy or sell the stock, seller has no such right but is instead obliged to fulfill the contract (ie has no choice to walk away but can only accept the assigment).
2. Selling naked option
a. sell put option with...
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Selling naked or uncovered options are very very risky.
For naked call option, you are obligated to sell the stock at the strike price if the option buyer decides to exercise the option. If you do not have enough stocks in your portfolio and if the price of that particular stock rises significantly, your potential losses can be substantial and theoretically unlimited.
As for naked put option, if the market price of the stock falls significantly, your po...
For naked call option, you are obligated to sell the stock at the strike price if the option buyer decides to exercise the option. If you do not have enough stocks in your portfolio and if the price of that particular stock rises significantly, your potential losses can be substantial and theoretically unlimited.
As for naked put option, if the market price of the stock falls significantly, your po...
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Selling Calls
Risk - Forced sale if stock rises.
Reward - Upfront money, keeps if stock doesn't rise.
Selling Puts
Risk - Forced buy if stock drops.
Reward - Upfront money, keeps if stock doesn't drop.
My strategy is to keep selling covered calls in a slightly bullish market. This helps me generate income and I like that. When market turns slightly bearish, I will sell cash-secured puts.
Each has its own risks and rewards, so the best choice depends on your own comfort and ma...
Risk - Forced sale if stock rises.
Reward - Upfront money, keeps if stock doesn't rise.
Selling Puts
Risk - Forced buy if stock drops.
Reward - Upfront money, keeps if stock doesn't drop.
My strategy is to keep selling covered calls in a slightly bullish market. This helps me generate income and I like that. When market turns slightly bearish, I will sell cash-secured puts.
Each has its own risks and rewards, so the best choice depends on your own comfort and ma...
$AMC Entertainment(AMC.US$ OBV shows nobody is selling.
Source of liquidity for hedgies is through options
Pushers have been adamantly selling everyone on two points of rhetoric that turned out to be FUD:
They can't manipulate the price below $XYZ.
Too many people will buy in."
That's not an issue, as we're almost back at pre-2021 prices without the same level of volume. No, the options pushers were more worried about the prices getting so low that they could no longer trick people into buying calls.
...
Source of liquidity for hedgies is through options
Pushers have been adamantly selling everyone on two points of rhetoric that turned out to be FUD:
They can't manipulate the price below $XYZ.
Too many people will buy in."
That's not an issue, as we're almost back at pre-2021 prices without the same level of volume. No, the options pushers were more worried about the prices getting so low that they could no longer trick people into buying calls.
...
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