In this video, I show you a step by step guide on how to sell put options in Moomoo, from finding options, selling options, what you can do after selling and things to take note. Enjoy!
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0:00 – Intro
Take note right now Moomoo only supports a simple cash covered put.
1:08 – How To Find Options
When selling put options, one of the most important thing is to only sell options on stocks which you are willing to own. Because when you sell a put option long enough, eventually you will be assigned 100 of the stock. I’ll be showing you how to sell put options on PLTR. I feel this company has a good chance of doing well. Its very volatile, which causes the options to have higher premiums. And the stock is cheap enough for us to sell 1 option.
2:10 – Moomoo Option UI
4:49 – How To Sell Options
Try to sell options with 30-45 days to expiry, and options at 0.3 delta. Many people found that these settings will give you a good risk to reward ratio.
7:22 – What Happens After Selling Options
After selling a 2 things can happen. If the option is in the money, the options buyer will exercise the option, and you will be assigned 100 stocks of the company. You will get your stocks 1 day after the expiry date.
If the option is out of the money, you can let the option expire. Or you can buy back to close the option. This method is recommended because stocks may suddenly reverse and you might end up in a losing position. So always remember that your profits are not guaranteed unless you have closed the option.