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Q1 Earnings Season Review: How's the performance of your portfolio?
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joined discussion05/13/2022 03:23

Using PUT options to buy the dip (kindda) in this double bear market

Woohoo it is a US bear market, China stock was already a crazy bear market, now it is double bear LaughLaugh so what do long term bulls on stocks do? buy more LaughLaugh look at Buffett he is finally spending billions to buy more shares now in this bear market.
Just nice today the 72% gain from $SPH(T39.SG)$ got cashed into my account (thank you covid crash) so got more capital to deploy again in stocks that crash CheerleadCheerlead will I see crazy gain soon? No, I will probably only see red for 2022 and maybe even 2023. But I have faith in value investing and that the stocks will eventually go back to their fair prices.
But from experience, the dip can dip lower and lower and lower. Since no one can time the market and buy at the bottom, I'm just going to start my buying spree slowly, because I don't know how long will the dip keep dipping hahahahaha.
But to maximise my gains, I'm selling short term PUT options instead of buying the shares outright. All the options is a cash secured PUT, which means I top up enough cash in MooMoo to buy the shares if I'm forced to buy. In this market better not use any margin or leverage, don't want to get margin called when the market crash even more LaughLaugh
Why PUT options? cause premiums Yeah!Yeah! since I'm going to buy at my entry price and hold anyway, so might as well sell a PUT option at the entry price and collect the premiums for free. Why say no to free money right?
Why short term? because I really want to buy the shares, so with short term options in a bear market, the chances of the stock crashing hard in this market environment is more likely.
So yea, started with $NIO Inc(NIO.US)$ today, if on June 10, NIO is below $10, I will be forced to buy their shares at $10. If not, nothing happens. Still keeping the premium of $60 regardless though.
Using PUT options to buy the dip (kindda) in this double bear market
Same with $Futu Holdings Ltd(FUTU.US)$, still waiting for it to fall below $30 a share on 20 May, so I will be forced to buy them at $30 each. regardless will be keeping the premium of $176. BTW, had already collected $904 in premiums and still didn't get any share SobSob hope this time will get it.
Using PUT options to buy the dip (kindda) in this double bear market
and don't worry tomorrow $Grab Holdings(GRAB.US)$ will be next cause usually Friday, is red day for Grab.
and slowly slowly will be buying the dip for $UP Fintech(TIGR.US)$, $Palantir(PLTR.US)$, $Warner Bros Discovery(WBD.US)$ too. So if you are shorting the stock, please work harder so I can get them cheap ah LaughLaugh
P.S. seem like Moo Moo doesn't support Cash Secured PUT strategy, cause the margin requirement is way too high. e.g. like if all the PUT are exercised it will just need 15k cash to cover but the margin call margin requirement is 21k. So if you are selling PUT in this bear market on Moo Moo do keep spare cash just in case ah. Don't later kena margin call hor LaughLaugh
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  • Jay Bleezy : The futu put 😂😂😂

  • doctorpot1OP Jay Bleezy: yea it could be exercised or not this coming week as it is quite close to the strike, but either way I'm happy hahaha LaughLaugh

  • affable Kraken_4801 doctorpot1OP: 关键还是在于自己的操作方式,可以进行波段操作,或者是日内交易

  • Macdonell J : In order to have the support of covered call with underlining stocks and cash secure put options with cash on hand as collateral, you wld have to call Futu customer service to help activate it for your account.

  • doctorpot1OP Macdonell J: covered call works well. the margin calculation is correct but for cash secured put it doesn't add up. I did ask the futu CS before but they say it is how they calculate it hahahaha. and they don't support poor man's covered call too, so have to have enough cash as collateral for that