社区

[Smile] 

Butterfly option strategy, generating profit at (almost) all situation.Picking a stock, with PUT option at these existing prices listed in the images, rounded off some numbers for simple illustration. Using $BABA as an example, with option expiry date set to be on 17.12.2021.Strategy 1: Buy PUT with Strike Price 110, and Sell 2 x PUT with Strike Price 95. You made a profit of $80.If stock price ends above 110, you gain $80If stock price ends at 105, gain from option W = $500 and initial profit = $80, total profit = $580If stock price ends at 100, gain from option W = $1000 and initial profit = $80, total profit = $1080If stock price ends at 95, gain from option W = $1500 and initial profit = $80, total profit = $1580If stock price ends at 90, gain from option W = $2000, loss from option Y

Option Strategy – Straddle or Short-Straddle?1. Straddle – buy a Call Option and buy a Put Option at the same strike price and with the same expiry date.2. Short-Straddle – sell a Call Option at a higher price and sell a Put Option at a lower price, with the same expiry date.In the Straddle Strategy, you will at least be able to exercise one of the 2 options, and whether you profit from it depends on how far the actual price is, from the strike price.In the Short-Straddle Strategy, you will at least gain from 1 of the option, since either the call or the put option will go expire, with the other option being exercised. In a fortunate situation in which the final stock price falls in between the Call and Put Option strike price, both options will expire and you gain from the fees from selli

Stock Investing: Martingale Strategy or Dollar-Cost-Averaging?To some people, stock investing is just like gambling. Buy low, sell high. However, it is almost impossible to predict the market. Fortunately, if we assume that no matter how much does the stock price falls, it will always increase ‘someday’, martingale strategy can also help you to guarantee profits.Based on the illustration below, supposed we start to buy 1 unit of stock at the price of 10, if the price increases to 11, we sell it and make a profit of 1.However, if the price falls to 9, we can actually buy another 2 units, such that when the price increase to 10, we sell them and make a profit of 2.If the price falls again to 8, we buy another 3 units, such that when the price increase to 9, we sell them and make a profit of

Options Ideas:1. Stock prices tend to be volatile. In the usual case, when it goes up to a peak, it will retract. When it goes down to a certain trough, it will rebound.2. Call Option tends to more expensive when the stock price increases, while Put Option tends to be more expensive when the stock price decreases.3. Selling a Put Option when the stock price drops close to the trough allows you to earn a higher option fee, and when the stock price rebounds, the sold Put Option is likely to turn useless.4. Selling a Call Option when the stock price rises close to the peak allows you to earn a higher option fee, and when the stock price retracts, the sold Call Option is likely to turn useless.5. If things turn out to be expected like 4 & 5, you can earn the option fee.6. Piece of Advice:

[Happy] 

[Smile] 

[Smile] 

[Smile] 

[Smile]