In a previous article, I shared how the increasing unrealised losses in my 3 Nvidia SELL CALL (of which I was naked on 200 shares) was creating a liquidity crisis on my account as Nvidia's share price kept rising. My Nvidia Time Bomb (-USD141.5k Unrealised Loss & Counting) | Why You Should Never Sell Naked … Continue reading After Solving Nvidia Liquidity Issue, Another Liquidity Monster Rears Its Ugly Head | How Do I Slay It This Time Round | How To Resolve Liquidity Issue Arising From Options Trading
Tag: how options work
My Trading Journal (17 April 24) | +USD738 Profits
In early 2023, I made one of the biggest trading mistakes by believing a financial guru that the stock market was going to crash in 2023 and went heavy on my short positions. I lost more than $40k in 2023 when the bear market turned into a bull market. It was also during that stage … Continue reading My Trading Journal (17 April 24) | +USD738 Profits
My Trading Journal (16 April 24)
I spend most of the trading session on 16 April 24 trying to fix my liquidity situation, which is dropping further after Tesla's continual drop in share price. As I own 710 Tesla shares, every USD1 decline in share price means my excess liquidity takes a hit of UD710. If Tesla drops by USD10, then … Continue reading My Trading Journal (16 April 24)
My Trading Journal (15 April 24)
April is quite a difficult month to trade. The bullish momentum has lost steam but the stock market is not exactly plunging at the moment. Things are choppy, so it is difficult to predict a single direction for profit. Thus, there is a chance that short term options contract may end up expiring worthless when … Continue reading My Trading Journal (15 April 24)
My Trading Journal (5 April 24)
Starting this new journal series to summarise my options trade for any particular day. 5 April 24 Trades [Trade 1] Bought 3 x Micron CALL I added 3 more positions to my original 5 positions of Micron Buy CALL contracts, with an expiration date of 20 Sept 24, at SP of USD200. I believe Micron … Continue reading My Trading Journal (5 April 24)
My Trading Journal (2 April 24)
Starting this new journal series to summarise my options trade for any particular day. 2 April 24 Trades [2 April 24] Sold 2 x CC on Tesla Tesla stock is not looking good, especially with the whole stock showing signs of correction and Tesla reporting disappointing delivery results on 2 April. The aim of this … Continue reading My Trading Journal (2 April 24)
Trading Review March 24 ($7,897 Profits)
The last trading month for March ended on 28 March and it is time to review the trades for this month. Feb was a good month with a net profit of S$7,735 but March was slightly better at S$7,897. The summary table of profit/ loss is as follows: The huge wins in March came from … Continue reading Trading Review March 24 ($7,897 Profits)
Trying Out A New Options Strategy | If Nvidia Closes Above USD820 On 26 April 24, I Earn USD3.2k
I wish to share this new options strategy that I am trying out, which I thought has a good chance of success and relatively good returns. This is actually a BULL CALL Spread strategy where you simultaneously buy and sell a CALL option at different strike prices on the same expiration date. Read more about … Continue reading Trying Out A New Options Strategy | If Nvidia Closes Above USD820 On 26 April 24, I Earn USD3.2k
I Found A Way To Fix My Broken Covered CALL & Naked CALL Positions, While Releasing Stuck Shares, Unrealised Profits, Without Hurting Liquidity
When an options seller sells a CALL option, he agrees to sell 100 shares of an underlying stock at a specific price, also known as the strike price, if the share price of the underlying stock rises above the strike price at the expiration date (end of contract). A CALL Seller can get stuck in … Continue reading I Found A Way To Fix My Broken Covered CALL & Naked CALL Positions, While Releasing Stuck Shares, Unrealised Profits, Without Hurting Liquidity
I Hedge On My Nvidia Bearish Positions & Gained USD7,094.50 (SGD9,592.34)
Since the start of the year, I have been placing hedges against my Nvidia bearish positions because Nvidia's continual rise in share price meant that my unrealised losses were increasing and I was starting to face liquidity issues because of that. Coupled with my falling short of 200 Nvidia shares in my 3 SELL CALL … Continue reading I Hedge On My Nvidia Bearish Positions & Gained USD7,094.50 (SGD9,592.34)
Learning Investment With Jason Cai 