Head player inclination guidance to help option sellers from beginners to great gods!

In September, option sir was launched“What are the investment tips for options sellers?”Topic. During this event, the bulls actively shared the seller's trading interests, strategic tips, operation reset, etc., leaving a valuable wealth for the option seller's investors.

Options sir has taken into account many aspects of content quality, originality, engagement, engagement, and positivity, and selected the awards for this event, and organized highlight articles from some of the winners. Let's see what is worth learning together ~

HIGHLIGHT AWARD: CONGRATULATE THE FOLLOWING 5 CATTLE FRIENDS AND RECEIVE A STARRY UMBRELLA

@非Fans “Option Sellers, Easy to Copy (2)”

What is the essence of an options seller? What money do you earn? How to increase the odds as much as possible? The answer is given in the article by non-Fans:

Options trading is similar in nature to casino gambling. For example, an option buyer has a 10% chance of earning 10x, then an option seller has a 90% chance of making 11%; and the facilitator of the transaction, like a casino owner, can earn spreads from which the dealer can earn fees.

Our goal is to beat our opponents in the game of options and earn their “bet”.

Sellers want to increase the winning rate and need to be clear by 2 points

：

1. Option Price = Intrinsic Value+Time Value。Intrinsic value is mainly related to the difference between the current price and the line price; while time value and distance maturity and possible volatility are highly correlated.

2. The choice of target assets is equally important for improving the operating win rate。Taking the example of a short put, the nature of doing a lot of caution is therefore suitable for a target asset that meets the following conditions:CORE COMPETITIVENESS, PROFITABLE, PREFERABLY LARGE CONSTITUENT SHARES, HIGHER TRADING VOLUME。

@空头法师 “Options Seller Experience-1”

Options sellers usually have two options: sell call and sell put, both are the best and the worst? The empty-headed magician believes that short puts are more sparing than short calls and bigger wins. There are three reasons:

1. The overall trend of US stocks is still rising。 The U.S. economy has been relatively strong, and most companies are still up; and most investors are bullish on the market, and purchases have been relatively strong.

2.The loss of short put is limited, short call is theoretically unlimited。A short put is a bet that will not fall below a value after the stock expires. If it falls, click here to pick up the price. In any case, the obligation of the put may be to buy some shares according to the contract after receiving a certain royalty. And when a short call is executed, it turns into a short position, and the subsequent losses can be huge and theoretically unlimited.

3. Option sellers, in theory, always have the opportunity to turn a loss into a profit。 The option is exercised immediately after it expires, and the option can be sold in reverse until the option is executed again. In the process, the short put is much smoother than the short call.

@OptionJack “The Truth of Options Sellers”

Jack sir has been trading options for 30 years and has summed up some of his valuable experience as an options trader to help novice options players get out of investment missteps

：

1.Short must prepare a lot of funds?For example, in the case of a short put, there must be a full amount of money ready to take delivery; if it is a short call, the risk is unlimited?WELL!!If you have the full amount ready to be picked up, you have lost the sense of leverage. What if you have to hold a stock every time to short call? This is a Covered call, just a strategy in options.

2. As with option short and bullish futures, you need to set a stop loss position.

3. LIKE OPTIONS AND FUTURES, THEY ARE SPECULATIONS, NOT INVESTMENTS. DO NOT LOOK AT SPECULATIONS FROM AN INVESTMENT PERSPECTIVE(Short Call or Short Put)

4.Short is best to trade only the big blue chip stocks on the first line。Sudden good and bad news causes stocks to suddenly explode, and there are always situations in the wrong direction. However, CFO does not put pressure on Small Stock Option Short on the 2nd line or below.

5. Options are the process of frying, not the expiration date of the frying。 99% of the accumulated trading volume of options is closed before the due date or expiration. Only beginners who do not stop eroding will wait until the price expires, or some investors are really ready to receive them.

@冰封的淚 “How to be a good options seller?”

It is especially important for sellers to establish good trading rules. Frozen Tears Share Their OwnTrading Rules：

1. Choose stocks and time of entryAND SELLING OPTIONS IS A MOVEMENT TOWARDS RIGHTS MONEY, SO IT IS ESPECIALLY IMPORTANT THAT THE STOCK PRICE DOES NOT FALL OR EVEN RISE DURING THIS PERIOD OF SELLING OPTIONS.

2. Conservative SellingTo get stock options at a lower cost, be careful with leverage!

3. Do good protectionIt is best to hedge the same or more number of options while selling options to prevent the stock price from rising and falling.

In addition, Frozen Tears shares an options strategy: Buy a certain amount of medium-long bullish options and sell short-term bullish options, with a bullish option to bearish option ratio of 3×2 or 2n1 recommended by individuals.

@婆婆過百歲 8 Tricks Between Two Couples, Two Parties Overcome 8 Tricks

Both options are against each other. How can the seller make a stable profit in the long term? For over a hundred years, Cow and Grandma shared 8 tips on seller strategy, 8 tips on how to win, 8 points of money management and 8 points of mastery. Option sir has organized the focus of the article. In the original article, the grandmother described in detail the characteristics of each strategy, how to control risks, and use scenarios,It is highly recommended to read the original!!

8 Tips for Option Seller Strategies: Bare bid/Ratio Bid, Coverage Buy, Bare Subscription/Ratio Subscription, Sell Saddle/Bow Style, Butterfly/Eagle Style, Call Calendar Spreads, Short Sell Price Spreads, Short Sell Spreads, Short Sell Spreads Subscriptions.

8 Tips for Option Sellers to Win: Position control, stop erosion in time, pay attention to volatility, watch out for actions, be friends with time, disperse risk, stay calm, expand cognition.

8 Points of Money Management: Management by implied volatility, managed by option funds, managed by margin, by absolute amount risk percentage...

Popularity Award: Congratulate the following 5 cattle friends to receive one Alchemist Bull

@烟雨静湖 “My Options Trading Experience”

@带袄 “Wing Ping invests a lot, earning 2.24 billion in 2 months, achieving an 81% annualized return”

@一天一天甜甜絲絲 “Trading experience of options sellers in chat”

@玩儿一下 “Sell put to ensure that there really is sufficient funds allocated”

@桃花林 “Give you a detailed understanding of how options sellers make a profit?”

Participation Rewards: Users who participate in a topic according to the rules receive 66 points

See comments section

Congratulations to the above winning cattle! Option sir will contact the highlight award and popularity award winners within 5 working days, providing personalAddress, name, contact information, Cattle Surrounds and Points Rewards will be issued within 15 working days, please pay attention to system notifications. If you have any questions, please contact Fortune Securities sir

Follow “Futu Options Sir” to learn more practical options trading knowledge and interesting options activities! Click on the image below, you can quickly pay attention to me Oh!

Risk Disclaimers

This article is for informational and educational purposes only and does not recommend any specific investment strategies. Content is general, strictly for educational purposes and may not be suitable for all investors. The above does not take into account the financial situation, investment objectives, investment time frame or risk tolerance of individual investors. Before making any investment decision, you should consider your personal circumstances and associated risks.

Any examples provided herein are for illustrative purposes only and are not intended to reflect the investment results that any investor can expect. Options trading involves significant risks and may not be suitable for all investors. Before participating in any options trading and implementing any options trading strategy, investors must consider the characteristics and risks of options trading and consult professional investment advisors when needed.

224K Views