I sold a Cash Secured PUT on Tesla for a 30-day contract to earn 1.59% return on capital if the contract expires worthless on 28 April 23. This is a relatively low risk trade where I have enough safety of margin for a 21% drop in share price (USD190 -> USD150). Even if Tesla crashes … Continue reading [28 March 23 Trade] Sold A CSP On Tesla, SP $150, Expiration Date 28 April 23, Premium $239 (1.59% Return In 30 Days)
Tag: how put options work
Why I Choose To Roll My CALL Option Contract When Share Price Falls
The seller of a CALL Options contract is generally bearish that the share price of his stocks will not rise above the strike price on the expiration date so that he will collect the full premium without being obliged to sell any shares. When the share price drops after I sell a CALL contract, what … Continue reading Why I Choose To Roll My CALL Option Contract When Share Price Falls
How To Earn 26.6% Returns In A Single Trade?
This is a very interesting concept shared by one of most favourite YouTubers, Ken aka Chicken Genius Singapore. Essentially, this method allows you to earn 26.6% returns in a single year, based on a single trade. This is a very good return and beats the S&P500 average returns of 8 to 10% per annum. Imagine … Continue reading How To Earn 26.6% Returns In A Single Trade?
[7 Dec Trades] AMD PUT, AMD LEAPS + Nvidia LEAPS
The market rebounded as fears over the disruption caused by the Omnicron variant started to diminish. Most stocks were in the green as investors entered the market to buy the dip. As I have already bought 20 LEAPS contracts on my high conviction stocks over the last 2 red trading days, I only added one … Continue reading [7 Dec Trades] AMD PUT, AMD LEAPS + Nvidia LEAPS
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?
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
Learning Investment With Jason Cai 