It was another day of selloff for Tesla as the stock continues to be hit by negative news, Elon Musk's impending selling of shares, his brother's sale of Tesla shares, Hertz's deal yet to be signed, and poorer China-made vehicle sales in October. Tesla's phenomenal run seems to be ending sooner than I have expected … Continue reading Goodbye Tesla, Hello AMD, Nvidia & Microsoft
Tag: how options work
Why Trade Options When You Can Buy And Sell Shares | 3 Advantages of Options
I was asked this question on why do we trade options when we can buy stocks and sell them at a higher price since we are bullish anyway. So, in this article, there are 3 reasons why options are better than stocks, in 3 different market trends. 1. You can earn when the share price … Continue reading Why Trade Options When You Can Buy And Sell Shares | 3 Advantages of Options
[Proof Of Concept] Why LEAPS Options With Low Delta Works
I am absolutely delighted to receive this message from one of our readers: "Jason, I did an experiment. Scenario 1Buy 2 option contractsDelta: 0.8Strike price: $35Premium paid: $11× 200 = $2200Expiration date: Jan 2024. Scenario 2Buy 6 option contractDelta: 0.39Strike price: $47Premium paid: $3.75 x 600 = $2050Expiration date: Jan 2024 Yesterday, when Pfizer spiked … Continue reading [Proof Of Concept] Why LEAPS Options With Low Delta Works
Goodbye AMD, Nvidia PUTS, Hello Meta PUT
On 5 November, I closed my AMD and Nvidia PUT contracts that I sold just one week ago, bagging a 3.4% gain in 4 days for AMD and 5.37% gain in 8 days for Nvidia. Details of these 2 PUT contracts are as follow: I Sold An AMD PUT Contract And Collected 4.36% Returns In … Continue reading Goodbye AMD, Nvidia PUTS, Hello Meta PUT
The Power Of LEAPS: Tesla LEAPS Is Up 340% In Just 18 Days
On 15 Oct 21, I bought a Tesla LEAP Contract and the details are as follow:Type of Option: LEAPS CallDate of Expiration: 20 Jan 2023 (461 days to expiration)Delta: 0.194Strike price: $1500Premium Price: $37.50Share price of Tesla on 15 Oct 21: $839.70 Based on Monday (1 Nov) Tesla's closing price of $1208.59, the premium has increased … Continue reading The Power Of LEAPS: Tesla LEAPS Is Up 340% In Just 18 Days
I Bought Tesla LEAPS At 3.75k 15 Days Ago (15 Oct 21) And Now It Is Worth $12.6k (236% Profits)
I bought a low delta Tesla LEAPS on 15 Oct 21, with a strike price of $1500, expiration date on 20 Jan 23 with a delta of 0.194. I pay at a premium of $3750 ($37.50 x 100) and Tesla's price was $839.70 at the time of purchase. It was before Tesla's earnings announcement on … Continue reading I Bought Tesla LEAPS At 3.75k 15 Days Ago (15 Oct 21) And Now It Is Worth $12.6k (236% Profits)
How Does LEAPS Works And How I Use LEAPS To Maximise Gains?
LEAPS stands for Long-Term Equity Anticipation Securities, which basically refers to buying a CALL/ PUT option contract with a long expiration date, at least 6 months or more. Essentially, if you are buying a LEAPS CALL, the strategy is to watch the share price grow, which translates to an increase in the value of the … Continue reading How Does LEAPS Works And How I Use LEAPS To Maximise Gains?
I Sold My DBS Bank Shares To Fund This (25 Oct 21)
The Singapore bank stocks such DBS, UOB and OCBC, have always been my favourite stocks for many years. From the early years of my investing journey where I find them too expensive to the opportunity I get in 2020 to buy them cheap and thus get a profit out of them, they have always been … Continue reading I Sold My DBS Bank Shares To Fund This (25 Oct 21)
Why I Buy OTM LEAPS With A Low Delta?
I have been asked why I am buying Alphabet LEAPS CALL option with a high strike price and low delta. A low delta means a low premium price increase/ decrease with the corresponding share price movement. There are a few reasons why I choose a low delta for my LEAPS options. Lower Delta, Lower PremiumThe … Continue reading Why I Buy OTM LEAPS With A Low Delta?
How Options Trading Works (Using Travel Insurance Plan As Analogy) | How does PUT Option Works?
While getting ready for our holiday, we would usually buy a travel insurance for a peace of mind. In doing so, we pay a premium (fees) to the insurance company to cover us for the period of our holiday. Whether there is a claim or not, the insurance gets to keep the premium that is … Continue reading How Options Trading Works (Using Travel Insurance Plan As Analogy) | How does PUT Option Works?
Learning Investment With Jason Cai 