Selling covered call options (sell covered call) is a strategy adopted by many large funds. It can also be used by retail investors in the US stock market.You can get income while holding it. This strategy is very suitable for stocks that have long-term positions, but they have not moved but they are not in a bearish position recently or are in a bearish position recently. It can be a good strategy for mature investors to roll over when holding some targets for a long time. Income comparison Assume that investors hold 200 shares of Amazon from January 1 to December 17, 2021 If there is no operation during the holding period, the final total assets will be USD 675,484 If the covered call strategy is carried out, it will be operated once a week; if 100 shares are sold after the exercise, ano
Buying U.S. Treasury Bonds "for Free": Selling TLT Put Options
$iShares 20+ Year Treasury Bond ETF(TLT)$$Direxion Daily 20 Year Plus Treasury Bull 3x Shares(TMF)$ On the macroeconomic front, the U.S. economic data has finally started to cool down!On Tuesday, the focus of the latest U.S. data was primarily on the latest labor force indicators. The Job Openings and Labor Turnover Survey (JOLTS) released by the U.S. Bureau of Labor Statistics showed that the number of job openings at the end of April 2024 was recorded at 8.059 million, the lowest since March 2021 and significantly below the market expectation of 8.37 million. The March data was also revised down from 8.488 million to 8.355 million.This has reduced the ratio of job openings to unemployed persons to 1.2:1,
[Options] Goldman Sachs gives attractive straddle options for April earnings season
Goldman Sachs once again recommends straddle options for the upcoming earnings season. Goldman Sachs has released a list of 20 companies, believing that investors are underestimating the earnings day volatility of these targets. Buying straddles is particularly attractive, especially for $Meta Platforms, Inc.(META)$ , $Netflix(NFLX)$ , $Cloudflare, Inc.(NET)$ and $American Express(AXP)$ META options imply a move of +/-7.8% on earnings-day, well below its 8Q average earnings-day move of +/-14.1%. One-month normalized put-call skew is in its 10th percentile relative to the past year, indicating bullish positioning by option
I had been trading options since year 2021. I had lost quite a substantial money on the actual stocks that I had bought. However, I had managed to recover all the lost through options trading by selling call&put option to earn premium. This is a very good trading tool if you know how to use it. Even Warren Buffett had been trading with this tool for somany years. Give it a try if you never done it before. Of course, please start with small amount first as every trading contains risk. Do your own diligent research study before you start trading options. Fom my trading share orders, it seems that I mainly trade options. Why did I choose options as my main trading category? Option sellers have higher probability of success and time works for us instead of against us. Higher probability of
Selling covered call options (sell covered call) is a strategy adopted by many large funds. It can also be used by retail investors in the US stock market.You can get income while holding it. This strategy is very suitable for stocks that have long-term positions, but they have not moved but they are not in a bearish position recently or are in a bearish position recently. It can be a good strategy for mature investors to roll over when holding some targets for a long time. Income comparison Assume that investors hold 200 shares of Amazon from January 1 to December 17, 2021 If there is no operation during the holding period, the final total assets will be USD 675,484 If the covered call strategy is carried out, it will be operated once a week; if 100 shares are sold after the exercise, ano