Reward丨Share Your Favorite moomoo Features

Views 167K Contents 699

Sadrick joined discussion · May 14 00:16

Favorite MooMoo tools as an Options Trader

Hello everybody, a little bit akward that i posted my last in-depth feature post prior to this event being out, so I'll just link it again: My last options feature review & QoL request (Options comms are actually cheaper?)

To make this post a little bit more interesting, i'll just handpick the most useful options tools on MooMoo that i use for options trading.

Also, i will be linking articles that explain technical terms so that yall are able to understand the terms better.

Now, let's do this from a step-by-step basis.

1. Discovery

The first phase of my trading starts with discovery, where I use Moomoo's rather in-depth options screening feature to search for stocks with options that fulfill my criterias.

Firstly as a background, I'm mainly an options seller, being short theta, vega(volatility), and finding stocks that are as cheap as possible (around max 60 USD per share, which is 6,000 USD per options contract.)

Hence, my options screener looks like this:

Favorite MooMoo tools as an Options Trader

If you're wondering why i have so little columns, you can right click on the columns and edit them.

Make sure you tick "Show underlying" on the right as well, as we want to search UNDERLYINGS, not every single individual options contract.

Through this screener, we're able to find liquid, high market cap stocks with a high implied volatility, perfect for selling options on.

Now, if you're an options BUYER, you will want to get low market cap stocks with low implied volatility, this is as statistically, the chances of obtaining big moves are more likely on low market cap stocks. (Hence perfect for long strategies)

2A. Analysis

Step 2 consists of two parts, firstly I will look at the stock's chart itself, to see how the price is moving and whether it's the type of stock to drastically jump up and down (typically means it's a meme stock or thrives in a volatile industry, such as cryptocurrency and healthcare.)

For example's sake, we will use $Tesla (TSLA.US)$ as I'm honestly tired of using $NVIDIA (NVDA.US)$ as my example.

Here, we can see that price while volatile, isn't nearly as volatile as say, $UnitedHealth (UNH.US)$ , which is a popular healthcare company.

With many volatile price movements in a very short time frame, from a glance, stocks that are part of obviously volatile industries are something we want to avoid. (Unless you are long options)

2B. Options Chain & Further Analysis

Now, we move onto the most important part of the process, that is, utilizing and analyzing the options tab to derive which options strategy, DTE or strike prices are best for the given market environment.

As an example, let's analyze $Palantir (PLTR.US)$ .

I chose $Palantir (PLTR.US)$ as it at some point overtook $NVIDIA (NVDA.US)$ in traded options volume, essentially it's pretty damn liquid.

One of the first few things you can look for under the options section, is to go to the Analysis tab.

Under this tab, you can see a lot of data regarding strike prices and put/call volume, but we mainly only bother with the Volatility analysis.

Under this volatility analysis, we can see that through a rough estimate of the baseline for implied volatility, the current IV is somewhat "Normal", neither expected to go up or down.

This is backed by the IV rank of 30, which is explained in this post.

Essentially, through this we can easily tell if we should be buying options (Long volatility), or shorting options (Short volatility).

Next, we look at the options chain to determine what Day-To-Expiry to use.

Here, we can see options separated first by their day to expiry, showing the IV as well as the Expected Move.

The main thing we're concerned with, is if there's a blue E on any of the expiration dates, to signal an upcoming earnings report.

We want to generally avoid these binary events as they can throw our strategy out if it's a short strategy. If we're doing a long strategy, we want to have a DTE as close as possible to the earnings date.

Now, since $Palantir (PLTR.US)$ doesn't show an E on any of the expiration dates, we typically want to pick the monthly expirations, denoted by not having a W in the expiration date.

The reason why is that most of the time, weekly options in the red boxes, dont have good liquidity, so you may or may not get filled, at typically bad prices.

Instead, you want to pick out of the expirations in the green boxes, indicating that they are monthly options and usually have more liquidity and volume.

Now, if we're selling options we want a DTE between 45 and 60 days to expiry, this is due to the Theta decay ramp helping us out the most within this timeframe.

Since we're selling options, theta decay greatly helps us during these expiration dates.

If we're buying options and have a long or directional strategy, its crucial to remove as much theta or vega exposure as possible. You can look at tastylive's options strategy guide to see which ones give you the least exposure to theta/vega.

Note: I am not affiliated with TastyLive, but they are a great resource for options traders

Now, with an expiration chosen (June 20th, 2025 38 DTE), we get to see the chain for this expiration.

Here, we can see the calls and puts for each strike price, I like how Moomoo formats them in terms of UI and aesthetic, the ability to change and resize the columns is a plus as well, cuz tbh theres alot of redundant information people usually wont use.

By right clicking an option, we can build a strategy we want, its simple and convenient, and even includes a graph mode for analysis, which was a suggested feature in my earlier feature reviews.

We can then switch to the curve mode, on the top left and view the graphing view.

This is probably the most useful feature that directly deals with options trading itself. We can change strike prices by dragging the popups, this allows us to see how the P&L curve changes as we modify the contracts used in the strategy.

Not only that, we can modify the date slider and IV slider to see how either of them affect our strategy's P&L.

It's honestly a great system that visualizes the strategy im opting for, and tbh i would never place options trades if this feature had not exist.

You can also see the expected move until expiration as the orange line, basically indicating where the market thinks price will go by the time the option expires.

This is a nice add-on that really complements the usefulness of this feature.

3. Post-Trade Placement

One of the most important things in options trading is the ease of management, having a way of easily modifying your placed positions is what truly makes an option trader succeed.

On MooMoo desktop unfortunately, some of these features are lacking, such as the lack of a position curve analysis and rolling button, which exists on Mobile but not on the desktop version, and the lack of any proper position history feature.

This means that if you've rolled a leg or two of an option strategy, it wont easily appear in a position history to allow easy viewing of your total position P&L.

All this is deeply explained in my previous feature post here, i suggest giving it a read if you're interested.

As a matter of fact, just trying to view your filled orders is a hassle on the desktop app.

This entire panel is completely redundant, there's no purpose for the filled orders if there's already an "All Orders" panel, just add a filter where we can select between filled or cancelled/working orders.

This saves space and just makes it easier to view.

Lastly, if you want to know how to setup unusual options trade alerts (To see what institutions are doing), take a look at this article.

4. Conclusions

That's all for this post, i'm glad that MooMoo has gone a long way since it's early iterations of the Desktop and Mobile app back when I started in 2023.

You can see how much MooMoo has grown, throughout my feature review posts, which go very in-depth in MooMoo's feature evolutions.

I hope MooMoo continues to improve their desktop and mobile app interfaces, and take some of my feedback into account.

Hopefully by the time im out of NS, they'll have fix a lot of the troubles I've came across.

Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only. Read more

143

Translate

Report

205K Views

Comment

All in Man : hahaha moomoo's options feature is really well done. I use it frequently too.

Report
Reply

Cancel Reply
Tliet : You’re clearly a seasoned options seller. Any thoughts on using moomoo for leveraged ETFs like SOXL? I’ve found their options chains messy on other platforms.

Report
Reply

Cancel Reply
Handiyanan : Love the focus on liquidity and avoiding earnings events that’s gold for short premium traders. What’s your favorite strategy when IV is “normal” like in PLTR?

Report
Reply

Cancel Reply
Sadrick OP Handiyanan : It depends, when IV is normal, there's no upside or downside bias. So we have to look at other things like where the stock will likely go.
From earnings, it seems palantir did well, so we could sell bullish credit spreads, to get some bullish moves.
Tbh as an option seller you probs don't want to touch stocks that don't have an elevated IV (hence why I screen for IV rank > 50).
There is however, always strategies that have a neutral to directional bias while not rlly being affected by IV/Theta, examples include a bullish back ratio spread or a poor man's coverered call. You can see more details in the options guide by tastylive that I linked in the post.

(Not financial advice)

Report
Reply

Cancel Reply
Sadrick OP Tliet : Typically the volume and liquidity for options on leveraged etfs are quite poor. I myself trade $GraniteShares 2x Long NVDA Daily ETF (NVDL.US)$ and come across this issue quite frequently, especially when you go further itm or otm from atm strike.
Due to this, if say the price moves insanely fast (cuz yk it's leveraged), the liquidity of any far itm/otm contracts become extremely poor, and the bid ask spread can go insane sometimes.
This is even worse on the weekly contracts.
But then again this is the same on all other platforms, just know that moomoo typically has higher options commissions.
Also a final FYI that leveraged etfs always lose value even if the underlying stays at 0, they are not long-term investments.

Report
Reply

Cancel Reply
RaimundoJansen :

Report
Reply

Cancel Reply
BombPopCaper :

Report
Reply

Cancel Reply
Csk19 :

Report
Reply

Cancel Reply
Csk19 : Thank you for your experience Share.

Report
Reply

Cancel Reply
74056157 : Thank you, sure. Love this breakdown.

Report
Reply

Cancel Reply