I think this is a good question posted by one of my readers. Firstly, rolling (close an existing contract and open a new contract subsequently) the AAPL PUT means I will lose the entire premium that I have collected last month. Not only that, I have to cough out extra money to buy the contract … Continue reading Q&A: The Share Price Is Falling, Why You Are Not Rolling Your Apple Put But Rather, Letting It Get Exercised?
Tag: how to trade options
The Stock Market Can Make You Rich, But It Can Also Bankrupt You | Sharing Some Principles Of Investing
For the first 9 years of my investing journey, I have stayed away from the US market because I fear the volatility that comes with it. Some stocks can rocket to the moon in share prices while some stocks can crash like falling knives. Sometimes, it is the same stock that did both. Let's take … Continue reading The Stock Market Can Make You Rich, But It Can Also Bankrupt You | Sharing Some Principles Of Investing
Why I Sell Weekly CALL Options For Volatile Stocks Such As Palantir?
I am currently holding a few growth stocks such as Palantir, Nio, Pinterest and their share prices are more volatile as compared to mega-caps such as Microsoft, Apple or Alphabet (Google). Why Weekly Covered Call?For these stocks which I own 100 shares or more, I sold weekly covered calls instead of monthly covered calls as … Continue reading Why I Sell Weekly CALL Options For Volatile Stocks Such As Palantir?
How Much Did I Make (Or Lose) In My Worst Trading Month (Jan 2022)?
The market continued to sell off in January 2022 as the Santa Claus rally that happened in Dec 2021 was short-lived. I cut loss on some of my LEAPS positions to free up capital for new options trading contracts. This is the profit/ loss table for closing my LEAPS positions in January 2022: I suffered … Continue reading How Much Did I Make (Or Lose) In My Worst Trading Month (Jan 2022)?
[14 Jan 22 Trades] Sold BAC PUT, Bought Netflix LEAPS, Roll My Covered Call Positions
After a massive selloff on 13 Jan 22, the market opened in the green on 14 Jan, which is surprising as the premarket was red. Bank of America (BAC) was down close to 2% following the mixed results from big banks and I took the opportunity to sell a PUT on BAC shares, with a … Continue reading [14 Jan 22 Trades] Sold BAC PUT, Bought Netflix LEAPS, Roll My Covered Call Positions
3 Reasons To Sell My LEAPS
LEAPS is a powerful strategy that can help us magnify our gains when the stock is on a bullish run. However, the opposite is also true as in a downtrend, as LEAPS will be magnifying your percentage premium loss faster than the percentage share price drop. So, we need to understand the risk if we … Continue reading 3 Reasons To Sell My LEAPS
[7 Jan 22 Trades] Buying A LEAPS Contract That Can 8x My % Returns
The US market dropped for the 4th day in a roll for the first trading week of the new year. Tesla continued to fall, so did the big tech and the chip companies. I have been buying the dip since late Nov 21 and I am now almost depleted with my capital. I sold my … Continue reading [7 Jan 22 Trades] Buying A LEAPS Contract That Can 8x My % Returns
[3 Jan Trades] Bought 3 x Tesla LEAPS, 2 x Nvidia LEAPS, Sold Tesla & AMD PUT
With Tesla's share price soaring after their phenomenal Q4 quarter delivery numbers, I bought 3 Tesla LEAPS contracts (as mentioned in my plan earlier), expiring 16 Sept 22, strike price $2,475 and paid premiums of $3,000, $2,980 and $3,170. I also close my Tesla PUT contract that I sold on 30 Dec 21 and lock … Continue reading [3 Jan Trades] Bought 3 x Tesla LEAPS, 2 x Nvidia LEAPS, Sold Tesla & AMD PUT
1st Year Options Trading Recap: The Journey Towards SGD$217,509 Profits In 2021
After doing a portfolio update in my previous post, I wish to share my options trading journey in this post, as a recap of the trades that I have completed in 2021. I hope this sharing can be useful to you or inspire you in some ways. I started buying US stocks in early Jan … Continue reading 1st Year Options Trading Recap: The Journey Towards SGD$217,509 Profits In 2021
Why Holding LEAPS Option Till Expiration Is A Bad Idea
LEAPS is a long-dated CALL or PUT option contract that allows us to leverage on time to benefit when the share price of the underlying stock rises or drops respectively. The longer the expiration date, the higher the premium we pay for the same strike price. In this article, I will share why it is … Continue reading Why Holding LEAPS Option Till Expiration Is A Bad Idea
Learning Investment With Jason Cai 