Futubull Options Sir

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With the announcement that the Grand Final is coming, will Tesla's rise continue? How do I make a profit using options seller strategies?

Hello everyone, I'm an option, sir.

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This week, the market is continuing to pair$Tesla (TSLA.US)$Enthusiasm. Although the stock price suddenly “dived” after 11 consecutive gains, the share price recovered slightly last Friday

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Markets Accelerate After Trump Hit“The Trump Deal”TESLA HAS ALSO RISEN TO MORE THAN $250

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Sir also combed parts$Donald Trump (LIST22962.US)$For your mooer's reference:

Go well with the “strength” of Tesla,$SoundHound AI (SOUN.US)$The news that the in-car AI language assistant is on the market in several European car brands has also given investors good expectations, with stocks surging close to 50% in just three days.

Click to enter SOUN Options Chain

In addition, TeslaQ2 report to be published next week (7.23)。 Different expectations for results will also be triggered this weekContinuous fluctuations in stock prices。

Many mooers want to share a drink from the next opportunity, but if the stock price is not exactly determined, the stock price seems to be such a big jump ahead, they want to make a big purchase, what happens?

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Click to enter the TSLA options chain

This week, Asir will introduce you to several options seller strategies. These strategies are applicable in situations where stock price volatility is large.

Recently, Futubull launched a special feature in the options trading area. Discover opportunities for more options by filtering multiple sampling indicators

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Click to enter the Options Seller Area

1. Why use seller strategy?

From [Options] > [Options Analysis] > [Volatility Analysis] we can see Tesla's overall options chainImplicit Volatility Rate (IV) is at the Peak, and IV percentages are up to 98%,At a high level in history。

As we know, options are divided intoIntrinsic ValuewithTime ValueTwo parts. of sharesHigher implied volatility, it is thought that the greater the potential for it to “shake” in price,The higher the value of time。

Therefore, options have a larger time value premium when the implied volatility is higher.

But don't forget: Volatility is not always at an all-time high.

Once the heat of the news dissipates, the market expects no more major events in the short term, and implied volatility will drop sharply. That's what we used to say.IV Crush (implied volatility crash)Phenomenon.

This phenomenon is common before and after the release of financial statements.Stocks before the release of the financial statementsUncertainty is high, PEOPLE EXPECT STOCK PRICES TO RISE OR FALL SHARPLY, SO THE WILLINGNESS TO BUY OPTIONS IS VERY HIGH, RESULTING IN A PREMIUM ON OPTIONS.

But after the release of the report, the share priceDecreased uncertainty, People's enthusiasm for buying options is absent, and IV will fall from the high point overnight, leading to a drop in the option price.

Under such a high IV at the moment, if you expect that the IV will decrease after the release of the report, you canSell Options Using Seller Strategies。 After IV Crush, if the stock price is unchanged, you can still buy back option close positions at a lower price, resulting in a profit that is worth the time of the option.

2. What are the right seller strategies?

There is a risk for the seller of options. What strategies are more appropriate in this case?

1) Cash-secured Put

A cash reserve call option is actually a guarantee that cash is held as a security for the put at the same time as a warrant. If youTake a long-term look at Tesla's development, and thinkStock price may rebound in the short term, then the cash reserve call option is one of theBoth guarding rabbits and attacking activelyStrategies.

Strategic Applicable Scenarios:

Assume Tesla's current stock price is$248And you expect that in the next few months, Tesla willSmall callbacks。

So you builtCash-secured PutStrategy. So when the stock price goes up, you get option money; when the stock price falls, you canBuy Tesla Stock at a Psychic Price。

The opening operation is as follows:

The base price you set in your heart is$220And so you found one in the options chain interfaceExpires after 3 months、Warrant price is $220Put and sell it.

The option amount obtained for the single share is$14.20, the total net option income is $1420.

Profit and Loss Analysis:

CASE ONE: IF THE EXPIRATION DATE,Tesla Stock Price >$220, Buyers do not exercise rights.

At this time, you areNo need to fulfill obligations to buy shares, Lie earned option money and made a net profit of $1420.

CASE 2: IF THE EXPIRATION DATE,Tesla Stock Price＜$220, Buyer's right.

At this point, you can not only receive $1420 in option funds, but you also100 TSLA shares were purchased at the expected price, perfectly meets your expectations.

It should be noted that the seller of options has theoretically unlimited risks and limited returns. Since 100 shares of TSLA are required to be traded per option, you needAt least $22000 in fundsTo meet the need for the delivery of executive rights. Therefore, sell the Put with caution if you do not prepare well for pickup.

Click to learn more >>

2) Sell Covered Call

Similar to Short Put, Covered CallReceive Option Money by Selling Call。 Unlike Short Put that requires sufficient cash as an enforceable guarantee, Covered CallBuy in advance the authorized shares with sufficient voting rightsAs a guarantee of the Enforcement Call.

Strategic Applicable Scenarios:

If youStocks held in Tesla, to TeslaLooking forward to the long term。

But you thinkIn the short termBullish expectations have been reflected in the price,Announcement of results is difficult for Tesla's stock price to rise further。

In this case, you buildCovered Call, that is, subject to holding Tesla shares and selling Call options.

The opening operation is as follows:

Assume Tesla's current stock price is$248You think the stock priceIncreased by more than $270 in two weeks。

If at this time youAppropriately hold 100 shares of TSLA common stock, you canDirect Selling1 Call that expires on July 26 with a line option price of $270 and is automatically recognized as a Covered Call combination;

You can also go directly under the option chain interface at the [Strategy Build]Select [Stock Guarantee], the system willSimultaneously execute Buy Stock+Sell Calloperations that make up the Covered Call.

The option amount obtained for the single share is$7.8, the total net option income is $780.

Profit and Loss Analysis:

CASE ONE: IF THE EXPIRATION DATE,Tesla Stock Price＜$270, the option is off the price.

At this time, the buyer will not exercise rights. youAccept $780 in options, andNo Fulfillment RequiredObligation to sell Tesla shares.

You are equivalent to being inUnderwritten on the basis of holding earnings and lossesgarneredAdditional Option Fund Income, which can increase income or offset losses incurred when stock prices fall.

CASE 2: IF THE EXPIRATION DATE,Tesla Stock Price ＞ $270, the option is within the price.

At this time, the buyer will exercise the right. Except you.Option to collect $780, alsoTo be fulfilledObligation to sell 100 shares of Tesla stock for $270.

That's the equivalent of what you earnWithdrawal OptionsAt the same timeExit Stock Positions at $270。 While subsequent stock gains have nothing to do with you, if you have a breakout price of $270 in your mind, then it is acceptable for you to exit at this point.

Click to learn more >>

We can see the commonality of the above two strategies:In possessionSufficient assets(Shares/Cash) as enforceableMake a GuaranteeIn the event,Sell Call/Put Short-Term OptionsRevenue.

As long as stocks lastThe line option price without touching the put optionand you can continue to sell options after the expiration of the option expires,Continuous collection of “rent”。

supposingTriggered the stock option price, You can buy a stock (Short Put) at a lower price or exit the Covered Call at a lower price. This is perfectly acceptable for investors who want to profit from a stock over the long term.

Futubull's“Option Seller Zone”Features that support the two most basic seller strategies mentioned above. You can drop down the options sellers area on the Markets > Options page.

Click to enter the Options Seller Area

Apart from Tesla, you can stay hereEXPLORE OPTIONS SELLERS PROFITING OPPORTUNITIES FOR OTHER BENCHMARK STOCKS OR INDEX ETFS。 Find the option contract that works best for your trade by filtering a variety of metrics such as ROI, OTM Probability, and more.Gain greater profit opportunities。

Click to learn more: Options Seller Zone

Okay, today's sharing is here

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The strategies shared above are mainly applicable to standardsWhen Equities Implied Volatility Is HighSeller strategy.

Here, we want to remind everyone that options are special.Seller has a higher risk, Be sure to operate carefully.

If you are not ready to submerge stocks, pleaseSold cautiously Put; If you do not have a corresponding straight line in your hand, pleaseSold Call with caution。

If you have a more accurate grasp of subsequent IV Crush and stock price volatility ranges, you can useSold out Saddle Set (Short Straddle)withSold Out Short StrangleStrategy.

Click to learn more:Short Straddle (Sold Out Saddle Set)withShort Strangle (Sold Out Bundle)。

The above is more about the options for this period. We welcome you Cow friends to forward three series with one click.

If you have any questions or want to know more, please leave a comment in the comments area and I will be happy to share more for you.

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