Will I finally be a proud owner of FUTU shares at $21 per share?
Had been selling PUT on FUTU for the longest time already and seem like this time, I might finally get it ![]()
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If I manage to buy it at 30 next week my cost basis is only 21 per share hahaha cause had collected 904 in premiums from selling PUT![]()
time to look for more deals in this bear market but also scared of nuclear war also leh. hmmmmm
on May 10:
If I manage to buy it at 30 next week my cost basis is only 21 per share hahaha cause had collected 904 in premiums from selling PUT
time to look for more deals in this bear market but also scared of nuclear war also leh. hmmmmm
on May 10:
on May 13:
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toomanyscammers : pls teach me haha. I'm the buyer who bought futu at 30 long. hahajHha
doctorpot1OP toomanyscammers: oh it is simple but a bit more complex an risky la, but it is known as a cash secured PUT option strategy.
So I sell PUT option at the price I willing to buy FUTU at, regardless of what the current price is. e.g. price was 37 but I only will to pay 30 so sell PUT at 30. this means I can be forced to buy FUTU at 30 a share, but I get to collect fees for selling the option and each PUT option contract is for 100 shares. So I have 3000 standby to buy futu if I ever get forced to buy it. why will people force me to buy futu at 30? usually cause the price crash below 30, so this way they earn money. e.g. price now 28, they buy 100 share and force me to buy at 30 a share so earning $200 liao.
so I have been selling the options for many months already and collected $900 in fees, but never once was forced to buy. but now the market crash so quite likely I might be forced to buy the shares at 30 hahahha. but accounting for the fees collected over the months, it is like buying at 21 a share hahahha.
but option got risk de ah, cannot anyhow anyhow do.
Conn_00 doctorpot1OP: Hi, I'm newbie here. I would like to learn too. May I asked :
1) What if u sell option for FUTU @ 30 with the current price @ 37 (example), by the time the price didn't reach 30, what will happen?
2) Any charges fees occurred when u sell option?
3) Is it need to put the date during sell option? If yes, how long should we put the date?
4) When the price reach 30 & u hv to execute the option by forced to buy 100 shares @ 30 (as per ur desired price), is it the sell option action will execute automatically or we need to press/select it in moomoo? Is it need to pay additional fees when the the price reach 30 & force to buy 100 shares?
5) How to do the "sell option" in moomoo?
Thank you
doctorpot1OP Conn_00: If you are new here are links to learn more, before trying out options, you should understand it fully before using it because options are leveraged products and are more complex, so if used wrongly it can cause you to lose a lot of money. Here are some links for you to start learning about options:
https://youtu.be/VJgHkAqohbU
https://youtu.be/8YVuvI9VLqw
https://youtu.be/l9ta2nLXoao
https://live.moomoo.com/course/1302?source=share&nn_page_type=course_catalog&source=share&lang=en-us&data_ticket=5b3500b278c1b7aa4a176e85285988a1
Some "safer" strategies
WHEEL: https://youtu.be/M6MqKI2uMIE
LEAPS: https://youtu.be/95suqaJcFtU
doctorpot1OP Conn_00: In regards to your question
1) if the price didnt drop below 30. Most likely nothing will happen. You keep the premium and nothing happens. Why? Because if the current price is 31 then the person can sell to the market at 31 instead of selling to you at 30.
2) yes, there is a fee when you buy or sell but no fee when it is exercised. Link is here: https://support.futusg.com/topic143/h5
3) yes every option contract will have an expiry date. For the date that depends on what strategies you are using, the IV% and your outlook on the price movement. For Cash Secure PUT, I will go for monthly because that have the highest time decay (which means the options value drops the fastest)
4) When the price reach 30, the option buyer have the choice of forcing me to buy from him. So if they force you to buy then yea, you will automatically buy them at the strike price. Each contract is 100 shares and there are no fees.
5) you can follow the photo
Conn_00 doctorpot1OP: Thank you so much for your sharing
doctorpot1OP Conn_00: no problem
learning options is great as it opens up a lot of strategies which can help rides through tough times like hedging too. trade safe!
High Profit Low Loss doctorpot1OP: You are selling put, so you collected 3 contracts of premium.
doctorpot1OP High Profit Low Loss: yup selling put so collected premiums. but depends on how many contract you sell then you collect how much accordingly. the premium will be the optipn price * 100
High Profit Low Loss : Cash secure PUT means you must have cash for 100 shares of the strike price value is it?
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