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        Hey! I found an awesome feature!
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        Mooer Stories Behind 10 Star Product Features: Options Trading

        Here is the first story in the Mooer Stories Behind 10 Star Product Features series. If you have any similar stories to share, feel free to leave them under topic Hey! I found an awesome feature! to win points!
        Mooer Stories Behind 10 Star Product Features: Options Trading
        Case Study 1—@Shine, moomoo's product manager
        Key Words: value investor, option investor, long-term investor
        Moomoo's product manager Shine kicked off his investing journey five years ago. He believes the market is forever changing and a mature investor should be adaptable and resilient to change.

        "In the past year, we saw a nosedive of the market as the external environment deteriorated drastically. In 2021, fast-growing companies and emerging industries were highly sought after, while in 2022, investors are more interested in companies with ample cash flow and stable operation performance." he recalled. "They use tools to assist with decision making more frequently, as they were getting more cautious and pickier."

        The other important trend he observed in 2022 was the popularity of options⑴ trading. In a bear market, options trading was highly demanded by investors including Shine to diversify their investments.
        Shine shared an experience of trading options to hedge the potential risk of stock price plummet. After a series of thorough and careful research, he was about to purchase shares of a technology, media and telecom (TMT) company in 2022. But he then found himself in a dilemma, as the company's share price hit a new record high at that moment.
        Mooer Stories Behind 10 Star Product Features: Options Trading
        "Finding the correct enter point is the key element to success, because nobody wants to buy high and sell low," he said.

        "But investors need to fully understand that the market changes rapidly and is almost unpredictable, and it is common that the share price drops after you buy. As a value investor, I do not mind holding certain stocks for a long time. However, if I buy a put② simultaneously with the transaction, I can offset part of my unrealized principal loss caused by the following price drop because the put theoretically should gain in value if I decide to sell to close the position."
        Case Study 2—@moo PM _Garit, moomoo's product manager
        Key Words: technical investor, option investor, short-term investor
        Garit joined moomoo’s parent company Futu in 2014, one year after the company officially launched. As a seasoned product manager, Garit understands the frontier market and has experienced the development and changing of investing trends.

        Comparing the investing trends of 2022 to 2021, Garit said it is more difficult for retail investors to earn money in the stock market, due to inflation concerns, macroeconomic downturns and other factors that exacerbate the market volatility.
        Mooer Stories Behind 10 Star Product Features: Options Trading
        "Options trading may provide an alternative for certain investors to help alleviate the impact of the bear market," he said.

        Apart from the original options trading feature, moomoo recently launched the multi-leg options trading feature on mobile end-user devices in the US market to empower investors with more advanced trading ability. With this feature, investors can combine two or more options transactions, or "legs" in trading strategies, which allows them to simultaneously buy and/or sell the legs aimed to achieve a certain investment goal.

        "For example, a common multi-leg option order—called a long straddle—is comprised of buying both a put option and a call at the same strike price and expiration date. Investors hope to profit from large price movements with a long straddle, rather than suffer from the volatility," Garit said. "Once you fully understand the concept of options, learning to use multi-leg options trading should not be too difficult."
        *Reading Notes:
        ①An option is a contract which allows its holders to buy or sell a specific quantity of an underlying asset or instrument at a specified strike price on or before the expiration date.
        ② A long put is a position when someone buys a put option. Investors go long put options if they think a security’s price will fall, and a long put gives them the right to sell the underlying stock at the strike price.
        Options trading entails significant risk and is not appropriate for all customers. It is important that investors read Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Supporting documentation for any claims, if applicable, will be furnished upon request. This content is for educational use only and not a recommendation of any investment strategy or features.
        Again, this is the first story from our Mooer Stories Behind 10 Star Product Features series. If these stories resonate with you, you are welcome to join them and make your voice heard under topic Hey! I found an awesome feature!. We are very much looking forward to your stories and are ready to reward you with points every week!


        Disclaimer: This presentation is for information and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. See this link for more information.
        Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only. Read more
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