Mooers' Stories | Navigating the highs and lows of options trading with @Chef_Soda
I believe what separates great investors from mediocre ones is their ability to endure fluctuations without deviating from their strategy—an ability that’s much easier said than done.
He was one of the top performers during the Options Paper Trading Challenge (For US Region Only) and won an Apple Watch Series 10 ⌚. This time, he will share his journey from a novice to a proficient options trader, delve into strategies, and offer advice for beginners.
All investing involves risk, including the potential loss of principal, and there can be no guarantee that any investing strategy will be successful.
The testimonial provided herein was not paid and may not represent other customers' experience, and there is no guarantee of future performance or success.
Dive into the post and join the discussion below, where @Chef_Soda will answer your questions in the comments section.
🎤 Could you start by telling us a bit about yourself? When did you first get involved in stocks and options, and what motivated you to enter this field?
I’m currently a sophomore majoring in Finance and minoring in computer science. I plan on obtaining a Masters in computational finance, and my long-term career goal is to work in the hedge fund industry.
I was first introduced to the idea of the stock market when I was around 10, and my grandparents would talk about the $Dow Jones Industrial Average (.DJI.US)$. I would watch the news with my grandfather, and when the stock market data came up, we would discuss our market predictions with each other. I was always fascinated by it.
When I turned 13 or so and saw The Wolf of Wall Street for the first time, I knew that I wanted to work with stocks as a career LOL. ![]()
My investment journey seriously began when I turned 18 in 2020 as a means to acquire wealth. But as I delve deeper into the science of financial markets, I have since developed a passion for trading & investing. One that I hope to maintain and nurture going forward.
🎤 In your opinion, how does paper trading differ from actual trading? And how has participating in this Challenge equipped you for real-world investments?
Paper trading differs substantially from trading in an actual account. I am a far more risk-averse trader in my real account. I would say that the competition helped me understand the liquidity of markets better. Not all orders will be filled for short-dated calls because there are market makers on the other side of the trade who have to be willing to write you the option.
🎤 What kind of challenges have you encountered during the Options Paper Trading Challenge or in real trading sessions? How do you tackle these hurdles and adjust your strategies accordingly?
Managing my emotions has been one of the biggest lessons I’ve had to relearn time and time again. This is amplified in a paper trading competition, where watching competitors overtake your ranking and comparing their gains to your own is mentally taxing.
The key to overcoming this is having confidence in your process and not letting short-term variance dictate your decisions.
I believe what separates great investors from mediocre ones is their ability to endure fluctuations without deviating from their strategy—an ability that’s much easier said than done.
🎤 Could you share a memorable trading experience from the Options Paper Trading Challenge or your real trading history, detailing perhaps your most successful or challenging trades (One most successful + one challenging trade)? What lessons did these experiences impart?
One of my most memorable trades was during this summer when the meme stock craze made a brief, but memorable comeback.
I remember seeing near 100% gains daily for a few days, I held a bit too long, but was able to get out with a 286% gain in less than a month! This made me see the importance of managing the emotions in the stock market, but also is where I became hooked on active money management.
My most challenging trades are any trade where I have lost money. As the great Warren Buffet once famously said:
“There’s only two rules in investing… Rule 1 is don’t lose money, rule 2 is to never forget rule number 1.”
🎤 How has your experience been with the Moomoo? Are there specific features that have enabled you to make informed trading decisions? What improvements would you suggest to enhance the trading experience on Moomoo? (If possible, please include screenshots of the features.)
I love Moomoo. The community aspect is awesome, and the amount of useful data is incredible. One area I would want to see improvements is in the stock charts. Here is an example of how I want the stock charts to look (take $Tesla (TSLA.US)$'s chart on February 12th as an example):
This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors.
Compared to Moomoo’s chart:
I think the Moomoo charts could be more streamlined and readable, and also be easier to assess the gain or loss % within any given period.
Any app images provided are not current and any securities shown are for illustrative purposes only and is not a recommendation.
🎤 Are you planning to stick with the strategies that worked for you in the Challenge for your future investments? Do you foresee making any modifications or enhancements to your trading approach?
I could see myself taking a small position-sized "bet" using options given a clear catalyst. Enough money that I’d be willing to lose. The upside potential of these can be massive, but the downside risk is effectively 100%. If I ever were to play short-dated options in a real account, I would want to deploy a concise risk management protocol.
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📅 Time: From now to March 16th, 23:59 ET
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Notes: We encourage benign and in-depth interaction, from which all mooers can learn from each other, helping our community members be more courageous and not alone in their investing journeys.
We truly appreciate @Chef_Soda for sharing his valuable and inspiring experience with us! Feel free to interact with him if you have anything to say!
🎁 Additionally, we know that every mooer has their unique stories, especially those involving "multi-bagger stocks." If you, too, have an exciting investment story you'd like to share, we warmly welcome you to do so!
Please click on the topic link below to join our discussion and share your story there. We are eager to hear more Mooers' Stories featuring you!
Thanks for your time. See you next time!
Disclaimer:
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. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount. Supporting documentation for any claims, if applicable, will be furnished upon request.
All contents such as comments and links posted or shared by users of the community are the opinion of the respective authors only and do not reflect the opinions, views, or positions of Moomoo Financial Inc., Moomoo Technologies, any affiliates, or any employees of MFI, MTI or its affiliates. Please consult with a qualified financial professional for your personal financial planning and tax situations.
Please consider that users will have different risk profiles, financial understanding, financial objectives, investment time horizons and tolerance for potential losses and they should consider these factors when comparing performance, advice or recommendations from other users.
All information comes from the interviewee and is published with the interviewee's consent. The testimonial provided herein may not represent other customers' experience, and does not guarantee future performance or success. Your experience may be different than the ones represented here.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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MACKGforEver : Fascinating read! @Chef_Soda ’s emphasis on process over short-term gains echoes Buffet’s rules but with a Gen-Z twist. The liquidity hurdle with short-dated options is underdiscussed—kudos for highlighting that.![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Q&A: How would you adapt your ‘small-bet’ options strategy in a bear market? Also, can we get a deep-dive into your computational finance tools?
DavidBeeby : @Chef_Soda’s blend of finance and computer science is
! As a fellow student eyeing quant finance, I’m curious: How do you see computational tools reshaping options strategies in 5 years?
gas 1126 :
For the Q&A: can we get a tutorial on your ‘risk protocol’ for short-dated options?@Chef_Soda
BelleWeather : Congrats Chef Soda, and well done!
A bit of warning: just because an order fills doesn’t mean the contracts are liquid. The lack of fills was peculiar to the trading game, in reality, MM’s and other traders will sell anything.
Wish you the best and continued success.
JIMMiE7 : Earnings
W B : @Chef_Soda what personal philosophies do you have? what personal mantras guide your life?
Kervencia Valmy : really great
sunwu79 :![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
72464010 : Any non-synthetic covered call ETF recommendations?
Congratulations! Interesting background.(I had a similar introduction to the stock market (via my grandfather; I thought he knew everything about business.. it was the 1970’s & he tried his best). My grandfather was also a serial small business owner .. mostly very small food related quick serve businesses.)
liang wang199 : No one will really teach you how to make money in the stock market, because it is a zero-sum transaction. If you make a profit, it means that others are losing money. Therefore, no one will increase the probability of others making a profit, thereby increasing the probability of their own loss. So never believe the lies that can teach you how to trade stocks. Behavioral psychology sees into a person's heart. Everyone has a motive for doing anything, so when you hear someone say anything to you, think about his motive first.
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