You may have heard of these few terms being mentioned when people discussed options, so what exactly are In-The-Money (ITM), At-The-Money (ATM) and Out(of)-The-Money (OTM) referring to? The concept is very simple. It basically means how the strike price (agreed price in an option contract) correlates to the market price of the stock and vice-versa. … Continue reading What Is In-The-Money (ITM), At-The-Money (ATM) And Out(of)-The-Money (OTM)?
Tag: how options work
Why Are CALL and PUT Options Commonly Known As Covered CALL and Cash Secured PUT?
You may have heard of these terms when trading options, "covered call" or "cash-secured puts". So, why are they named as such? "Covered Call" basically means that if you are a seller of a CALL option contract, you will need to own 100 shares of the underlying asset before you can sell a CALL option … Continue reading Why Are CALL and PUT Options Commonly Known As Covered CALL and Cash Secured PUT?
How LEAPS Options Trading Strategy Gave Me Insane Returns In The Last 4 Months
This is the reason why I highly recommend the LEAPS strategy that can help you grow your money exponentially if you pick the right stocks at the right time. In the past 4 months, this strategy has helped to achieve phenomenal returns for my portfolio. I have circled (in red) those that yielded more than … Continue reading How LEAPS Options Trading Strategy Gave Me Insane Returns In The Last 4 Months
[Option Strategy] LEAPS Vs. WHEEL
In my first year of option trading, I have only used 2 trading strategies and they have served me very well. The 2 strategies are the Wheel strategy and LEAPS strategy. To recap on what are the wheel and LEAPS strategies, please refer to these posts:How Does The WHEEL Strategy Works?How Does LEAPS Works? In this … Continue reading [Option Strategy] LEAPS Vs. WHEEL
Goodbye Tesla, Hello AMD, Nvidia & Microsoft
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
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)
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