牛友有料到

joined discussion · ·

[Investor Story] Overnight windfall of 5 million! He relied on these two options strategies to turn trading into a "money-making assembly line"

Make 5 million overnight! He is a '91 innovator in the pharmaceuticals industry, doesn’t gamble on earnings, doesn’t chase concept hype; instead, with fragmented time and a fixed options strategy, he steadily profits in the Hong Kong and US stock markets. He saysInvesting starts with mastering one’s mindset; tools are more important than stock-picking, and discipline is more valuable than prediction.Today, we are joined by@泰勒顿顿, to talk about how he went from being a trading novice to building his own "investment journey" using options strategies.

1. Finding the right tool is more important than finding the right stock

Teacher Dundun first encountered investing during his days in pharmaceutical investment and financing. After transitioning to secondary market trading, he suffered losses from leverage and endured the pain of volatility. Therefore, he quickly realized:For ordinary investors, finding the right tool for yourself comes before talking about making money.After focusing on Hong Kong and US stocks, he didn’t jump straight into common stocks,nor did he indulge in 'lottery-style options'—buying or selling uncovered options. Instead, he patiently studied options combinations—performing actuarial calculations.。

2. Turning trading into an assembly line: A complete breakdown of two core options strategies

He refuses to trade without protection, focusing only on options spreads! This is a rule he summarized through years of real trading experience, and it is also the core principle for avoiding risks and achieving stable profits.

(1) Vertical Spread Strategy: Same expiration date, same type of option(All Call options or all Put options), differing by only one strike price(different in vertical direction)

The most exciting part is still $Avis Budget (CAR.US)$(a U.S.-based car rental and ride-sharing service provider)Surging 730% from the end of March, hitting an all-time high. However, the key driver behind this surge was a hedge fund's sudden increase in holdings, with long-term major shareholders collectively locking up about 71% of the tradable shares, triggering an extreme short squeeze. CAR skyrocketed amid frenzied market sentiment.

Why did they choose to short it? The reason is actually quite simple!① A concept stock with negative PE, the company has been continuously incurring losses② Increase of 730%, significantly deviating from fundamentals ③ Breaking historical highs , scatterA signal for retail investors to take delivery, andthe short-selling pool has been empty for multiple days, squeezing institutions significantly. The last time it was this intense was during the$GameStop (GME.US)$ moment, so on the evening of the 22nd, I opened a position deploying a May 16th expiry Put Spread(Strike prices 680/690), after which the stock price plummeted. That night,before going to bed, I reduced the position on another leg. Once the direction was confirmed, I let profits run; my current position is up $770,000!

Another classic trade was with SanDisk, whenthe memory sector was the market's main focus, the consensus among everyone is clear,with sustained upward momentum; and just afterMicron released its earnings, the sector experienced a pullback, allowing market sentiment to be fully released,which created an excellent opportunity for positioning; thus, I deployed a 7-week vertical spread, keeping the risk-reward ratio at around 1:3, gradually reducing positions after mid-range profits;finally successfully earning $120,000.。

Two common strategies:Vertical spreads are suitable for deployment when the trend is clear, capturing directional trends + time value.

Bull Call Spread：Buy lower-priced Calls + sell higher-priced Calls → profitable when there’s moderate upside without needing a large increase.

Bear Put Spread：Buy high-strike Put + Sell low-strike Put → Profit from bearish outlook without requiring a major downturn

Key operational points：①Timing selection：Prefer options expiring in 7-8 weeks, not shorter than 4 weeks, because the last two weeks generally involve cutting tail risks and guarding against black swan events to protect accumulated gains ②Layered position building method (1/5 position principle)：Enter in batches over the first 2-3 weeks, with each batch approximately 20% of total position; once floating profits reach 1/3 → reduce position by 1/3; when floating profits reach 2/3 → reduce position by 2/3, never be greedy; ③Initially, it is common to construct a complete options combination: maximizing margin utilization，Cut the protective leg in the later stages to allow the profitable leg to fully realize its profit potential。④Dynamic risk-reward management:Initial position: Risk-reward ratio ≤ 1:3(1 point of profit can bear up to 3 points of loss). After splitting legs: Risk-reward naturally increases, but earlier profits provide protection. Fellow investors also do this.Portfolio P&L curve: No complex calculations needed! Clearly visualize profit and risk

Moreover, multi-legged options strategies can utilize higher leverage, improving capital efficiency and maximizing the advantages of portfolio strategies. He doesn’t have any exclusive information; he just repeatedly executes the same model to perfection.

(2) Iron Condor Strategy:Suitable for layout after high IV peaks in hotspots, neutrally collecting premium to profit from volatility.

The most memorable Iron Condor trade was still last year,$Bitcoin (BTC.CC)$A big surge,$Strategy (MSTR.US)$ When combining Bitcoin reserves, positive statements from executives, and high implied volatility (IV), deploy an iron condor options strategy with a wider price range.Strictly control Delta between 10-15, using a 7-week options combination, holding the position for 5 weeks to ultimately make a profit of $100,000-$120,000.。

Essence: Simultaneously executea bullish put spread + a bearish call spread, consisting of four legs in total(resembling a vulture spreading its wings)

Specific structure (assuming stock price is $100):

– Sell the lower put spread (Bull Put Spread): Sell 105 Put + Buy 100 Put (collect premium)

– Sell the upper call spread (Bear Call Spread): Sell 110 Call + Buy 115 Call (collect premium)

– Target: Scenario One: Stock price between 100-105(e.g., 102):The sold 105 Put: Exercised (in the money, you are required to buy the stock at 105), the bought 100 Put: Expires worthless (out of money), the sold 110 Call: Expires worthless, the bought 115 Call: Expires worthless;Scenario Two: Stock price between 105-110(e.g., 107)：All four legs of the options expire worthless, and you keep the full premium.

Suitable scenarios and practical tips:

Suitable Scenarios：①High热度, high IV, good liquidity targets ②After a热点 tops out(e.g., after earnings reports or significant news)During the declining volume phase, positions can be built around support levels③Not suitable: Low liquidity or low IV $Berkshire Hathaway-B (BRK.B.US)$$Amazon (AMZN.US)$

Strategy characteristics: Time decay is advantageous for investors(Positive Theta), suitable for "picking tops" but not wanting to purely short the market.

Core parameters:Delta of the four legs controlled around 10-15 (7-8 for high volatility targets)，Use Delta hedging to profit from Gamma and time decay, making the risk-reward ratio safer. Additionally, there are two useful functions for options:① Option Analysis - Volatility Analysis：Pay attention to the ratio of IV to HV,Sell when IV is high, buy when IV is low②Option movement: Monitor large orders and look for opportunities! Transitioning from news-driven trades → capital-driven trades

Position rule: Fully invested but controllable, always prioritize risk

（1）70% main position(Protected options portfolio)+30% flexible position(Short-term leveraged ETFs, light positions for trial and error)

（2）Core principles：Clear positions 1-2 weeks before expiration to strictly prevent losses from passive exercise, this is the 'key to avoiding risks' summarized from years of practical experience;

（3）Risk hedging: Simultaneously holding 2-3 spread strategies, andForming hedges or diversification between products(e.g., one tech stock, one energy stock), andStagger the maturity dates(maturity dates are staggered by 2 weeks and 3 weeks respectively), reducing concentration risk;

Three, adhere to the 'Three No's' principle! Only trade stocks within your understanding and that you can hold onto.

Teacher Dun Dun’s investment approach always adheres to the bottom line of 'respecting the market and staying within one’s knowledge.' His stock selection and trading principles are simple yet practical.

Core 'Three No's' Principle

(1) Do not chase after stocks that everyone is piling into,with uncontrollable volatility.(e.g., $Tesla (TSLA.US)$ ）

（2）Do not short US stocks, do not bet on earnings reports, and do not trade near-expiration options., only trade what you understand.Trend-following trading

（3）Avoid short-term popular stocks, unless you have deep industry knowledge(such as a familiar innovative drug sector) $Eli Lilly and Co (LLY.US)$）; only invest inlong-term observations and what you can confidently hold onto—being right matters less than this . For example, well-known large technology stocks; like $SanDisk (SNDK.US)$ stocks with clear trends may sometimes be followed in the short term.Of course, everyone’s ‘common sense’ is different—you must rely on your own approach.

His timing logic:Only act when the market is in panic and undervalued assets are being oversoldTechnically, focus on the 200-day or 100-day support lines and follow the trend. Fundamentally, track macro signals such as Fed policies, interest rate hikes or cuts, and the situation in the Middle East.

Focus on three major directions in the long term

（1） The Magnificent Seven tech stocks in the US market： $Alphabet-C (GOOG.US)$$NVIDIA (NVDA.US)$ Such frequently used targets with solid fundamentals

（2）Precious metals + energy cycleBullish on commodities over the next 2–3 years, deploy early without chasing events. Bought earlier because of signs of conflict in Venezuela and prices being at a stage low, so took an early position. $United States Oil Fund LP (USO.US)$ After seeing a pullback to a reasonable level, $XAU/USD (XAUUSD.CFD)$ it still presents a good opportunity.

（3）Outlook for Hong Kong and US stock markets: ① US stocks: Continued bullish outlook, focusing on the global economic trend, believing that US stocks have a driving effect on the global market. ② Hong Kong stocks: There are many companies queuing for listing in the Hong Kong stock market, which creates selling pressure, but it will follow the trend of US stocks. More optimistic about high-dividend banks in the Hong Kong stock market. $HSBC HOLDINGS (00005.HK)$ Foreign investment-approved, stable high-dividend targets.

4. Mindset Management: The biggest enemy in stock trading has always been yourself.

Teacher Dun openly stated:All techniques in options trading ultimately aim to manage one's mindset.If you invest 80% of your assets in the stock market hoping it will turn around, you will never achieve a carefree state. His best returns always happen when his real-life business makes the most money—real-life business is the 'main support' for investment. With this backing, one can calmly reduce positions during market pullbacks without stubbornly holding on.

Of course, there are also times when trading incurs losses; Xiaomi lost more than 300,000 at its peak.But the problem doesn't lie in choosing the wrong target, rather in failing to adhere to trading discipline. More counterintuitively, he never pursues a high win rate: 51% is enough, relying on repeated systems to amplify gains.

Specific methods for managing mindset

① Control position size：My options position will not exceed 70%.If you control your position well, your mindset will naturally improve.

② Frequent reduction of positions：When there is profit, reduce positions gradually.Reducing by 1/4 or 1/3 is good; don't be greedy for more, and don't cling to the battle.

③ Timely stop-loss：Keep cash, wait for opportunities, don’t force it, and don’t be anxious.Rebuild the portfolio and reallocate positions.

Investment philosophy: A 51% success rate is enough.

The logic is actually quite simple:Win rate cannot be controlled, but discipline can be.。So he focused all his energy on:Taking profits and stopping losses, position control, repeating strategies,Rather than predicting market trends. The 'trinity' of investment duration, win rate, and frequency is unattainable. I’m willing to sacrifice holding time for more frequent trading, which alsoCaptures the essence of investing—not relying on luck, but on discipline and repetition.

Five, three principles for options beginners

（1）Find the right tools： Never start with naked buying or selling,That’s pure lottery-ticket buying,Options combinationis the tool that suits most people.

（2）Learn options strategies：Engage in medium-term trades of 5-6 weeks or longer, this is the core value of options. While getting started with combinations may be difficult, it’s the only way to hold a large position confidently.

（3）Risk avoidance：The core of all operations is risk avoidance, especially tail risk.Never focus solely on expanding profits; the last two weeks are the biggest source of losses for retail investors. It’s essential to exit early and protect your gains.

Lastly, you can alsoCheck out more community shares: document your own trading process and exchange ideas with fellow investors, through sharing and discussion, push yourself to be more rational and rigorous.

[Interactive Giveaway]

Share your thoughts on this article in the comment section. The first 150 fellow investors who write over 30 words and make reasonable points will receive 66 points.

If you find this article inspiring for your investment journey, feel free to @ your friends to read it together~

Event deadline: From now until May 8, 2026

If you have more suggestions for our column, feel free to leave a comment! Follow@Investor StoryStay tuned for the next [Investor Story]!

Disclaimer:The content of this article is provided by@泰勒顿顿 Accept@Investor Story. Images in the article were provided and authorized for use by @泰勒顿顿This article is based on interviews and the images in the text are provided and authorized by . The cases in the article are for reference only and do not constitute any investment advice. The information in the article does not constitute any industry or metric recommendation; the stock information and introductions represent the user's personal opinions, do not constitute any stock recommendation, do not represent Futu's position, and are not professional advice. Past performance of stocks does not indicate future results; the stock market involves risks, and investments should be made with caution.

646

2.2M Views