user
Optionspuppy
2023-09-25

Sell near 0DTE google option earn 1% around per month 

Picture this: Google, one of the tech giants, is currently trading at $130 per share. The game plan here is to sell a weekly option with a strike price of $120, set to expire in 14 days, at a premium of $0.36 per contract. But how do we gauge the potential gain or loss here? Let's break it down.

First, understand that one option contract typically represents 100 shares of the underlying stock. So, in this case, your contract involves 100 shares of Google. You'll receive a premium of $0.36 per share, which totals $36 ($0.36 x 100 shares) for selling one contract.

Scenario 1: Google's price remains above the $120 strike price at expiration. In this case, the option expires worthless, and you keep the entire $36 premium. The percentage gain here is simply the premium received ($36) divided by the initial capital at risk (which is essentially $120 for the strike price), resulting in a percentage gain of 30%.

Scenario 2: Google's price falls below the $120 strike price at expiration. You might be obligated to buy 100 shares of Google at $120 each. However, since you already received a premium of $36, your effective purchase price is reduced to $120 - $36 = $84 per share. If Google is trading at, say, $80, you'd still have a paper loss, but it's cushioned by the premium you received.

In essence, you're looking at a potential gain of 30% if Google stays above $120, and if it drops below, your effective entry price is lowered thanks to the premium.@MillionaireTiger @TigerStars @Daily_Discussion @MillionaireTiger  do feature my nice strategy with $10 plus buffer 

Quad Witching Coming! Pick 0DTE Options?
The first Quadruple witching day of 2024 is on its way - this Friday! On this day, 4 kinds of derivatives will expire. Heavy trading volume makes the market highly volatile compared to normal days. Zero-day expiration (0DTE) options, also known as same-day expiration options, are options contracts that expire on the same day they are traded. This concept has been expanded: options expiring that week can also be counted as 0DTE. ---------------- Would you choose 0DTE options as Quad witching day is around the corner?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • WernerBilly
    2023-09-25
    WernerBilly

    Guess what time it is . It’s time to vote and change the CEO and upper management so google can come back $150.00

  • JohnnyYoung
    2023-09-25
    JohnnyYoung

    well.. Sold 142 Nov 3rd calls.. Please take my shares at that level.. got 2.15 a contract.. good luck .. Amazon pays even more.. higher beta..

  • PhoenixBee
    2023-09-25
    PhoenixBee
    Lastly, use the premium for Yakun.. Haha..

    Are you the one who also sold covered call for Manulife? 😂

  • HarryCox
    2023-09-25
    HarryCox

    same for all tech stocks, google is not doing too bad tbh

  • AdamDavis
    2023-09-25
    AdamDavis

    Gov will terminate G is burned asset.

  • Fenger1188
    2023-09-25
    Fenger1188
    谢谢精彩分享👍🏻👍🏻
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