How to trade options on moomoo: Hear the advice from your fellow investors

Last Friday, we hosted our third Moomoo Courses event in May:
Event of The Week: Get 30K reward points and learn option trading

Lots of moomooers got excited about this opportunity and offered to post their tips and trading stories. Below are some of the best comments selected for you.

Watch out for the risks before trading options contracts!

Before diving into option learning and trading, please note that options carry a significant level of risk and are not suitable for all investors.

Just like what a moomooer has said below, be cautious with options as great returns often come with great risks.

Trading advice from moomooers:

1. @Mooligan recommends a very useful function for option traders on moomoo.

"Also highly recommend to check the analysis tab, where you can find the breakeven price, success probability and scenario of different strategies."

2. @Coheavand: "What this means is if there’s a huge mismatch between buyers/sellers and bid/offers of an option, it gives you an indication of the market’s sentiment."

3. @满足就好:

“- Buy options early

- Options with high open interest will be easier to trade as there are more buyer and sellers

- If u have lower risk appetite, close your option 1 month before expiry

- If you like high risk high returns go for weekly options but try not to hold till the last day as value depletes everyday for option

- Best is go in at after resistance broke or when there is a finance report coming out and you expect greater fluctuations

- Lastly dont be greedy, got earnings is good!"

4. @新加坡代表 TEAMSGMOO suggested "A good strategy for beginners would be ‘the wheel strategy’."

5. And we had a very insightful post from @ekenikichi.

"I used option tradings to "hedge" against market crash. If you don't understand what I meant, simple terms would be, I am buying an insurance against market crash.

6. @浆糊中人 explained what the pros and cons of option trading are.

7. @SoundInvestor shares the understanding of fundamental knowledge regarding options. But we need to clarify on the point that "To be my knowledge, moomoo currently does not support covered calls. (check on this)".

The covered call function can be provided for investors whose option level is greater than 4. You can verify the option level on your account page.