In 2025, Robinhood (HOOD) was a textbook bull run: it rallied from an intrayear low of $29 to a peak of $153, up more than 5x. On top of that, the crypto market was red-hot—Bitcoin broke above $120,000—which gave many people a kind of “crypto conviction,” and that conviction spilled over into Robinhood as well.
But after the New Year, as Bitcoin sold off sharply for multiple sessions in a row, HOOD also suff...

In the previous post, we discussed using long puts for deep hedging. But as mentioned, the scenarios that truly call for long-put hedges are typically panic-driven sell-offs—they don’t happen that often. Statistically, over the past ten years, they’ve occurred about once per year on average, and in some years they don’t occur at all.
By contrast, milder, more contained pullbacks happen many times every year. These ty...

In the previous episode, we covered the first—and most important—way to deal with drawdowns: cutting exposure. As a quick recap, what are the advantages of proactively trimming positions when markets start to fall?
In this episode, we move on to the second line of defense: hedging with options.
1. When to Hedge?
Before we dive deep into hedging strategies, it helps to identify differences between two types of drawdowns:
A tech...

Even though the U.S. stock market is known for its long-term upward trend, market declines are far from rare. Statistically, index drawdowns of 15% or more have occurred at least once in almost every year since 2020, while 8–10% pullbacks are even more frequent.
Since declines tend to be deep and fast, the damage can be significant. That’s why investors need a practical, actionable playbook for surviving down markets.
Moomoo Le...

Does the word "Options" make you want to run away?
You are not alone.. For years, learning options meant drowning in 2-hour boring lectures and confusing jargon.
But not today!!!
In today's post, we’ve condensed the complex world of options into 20 easy-to-read comics. In just 5 minutes, we'll transform your mindset, break down the safest beginner strategies, and show you exactly what to watch out for before placing your very first order.
L...

In our previous post, we introduced three useful tools on moomoo that help investors read the pre-earnings options setup—so you can better judge whether it makes more sense to be an options buyer or an options seller. Starting from this episode, we’ll go step-by-step on how to build earnings strategies on buyer and seller.
This post focuses on buyer strategies. Next episode, we’ll cover seller strategies.
First of all, a hard truth: buyi...

Starting next week, U.S. stocks will officially enter the 2025 Q4 earnings season. And for most investors, one question immediately becomes front and center:
How to use options to “trade earnings” effectively?
The Moomoo App offers a rich set of tools that can help you improve your odds when trading around earnings—and avoid common pitfalls. Starting today, we’re launching a new course series, which is designed to help investo...

In the previous two posts, we covered how to use short puts in two market regimes: (1) buying the dip and (2) range market.
Today’s episode focuses on how to use rolling short puts to compound cash quickly during a sustained uptrend.
Before we begin, a quick poll:
1 Typical Setup
This strategy works best when the market has three features:
A. Clear upward trend: higher highs and higher lows.
B. Pullbac...

Recap
In our previous note, we discussed how investors can use short puts (selling put options) to buy the dip. Here’s a quiz.
Feel free to post your answers in the comments. We’ll publish the answers in the next episode.
Quiz 1: What are the benefits of using short puts to buy the dip?
A. Cash income — you can earn premium even if the stock doesn’t rise
B. Possibility to acquire shares at a lower effective price — if the s...

Short-puts is one of most important strategies in the options toolkit. It’s highly versatile—effective both aggressively and defensively. In this three-part series, we’ll break down how short puts work across different market regimes: (1) buying the dip, (2) range-bound markets around highs, and (3) uptrends.
This is Part 1: using short puts to buy the dip.
Advantages
During a selloff, it’s extremely difficult to pinpoint the exact bot...