Hi everyone! It's been quite a while since my last post, as I have been busy learning a new investment called Options. I have been trying to learn it on my own, but have found it confusing, until a dear friend introduced it to me, and sparked this new excitement into Interactive Brokers Options 😎
Options is really mind-blowing yet complements stock investing very well. It deals more into strategies and statistical probabilities, and opens a whole new realm into why Options has been growing in popularity over these past few years 😅
The most popular and safest option strategy is the Wheel Strategy. It starts with choosing a fundamentally solid ETF like SPY or QQQ, that tracks the USA S&P500 or Nasdaq100 index
Step 1: Start by Selling Put, collect Premium $, until 100 Shares are assigned
Step 2: Then Sell Call, collect Premium $, until -100 Shares are assigned
Step 3: Return to step 1
Plus while Selling Put, the USD cash also earns a solid 3.83% interest rate 😁
If you are also keen to obtain US$1,000 worth of IBKR shares & start your Options journey, click on my referral link https://ibkr.com/referral/jason9403
Press on Financial Warrior, YOU Mighty Man of Valour!
Related Posts:
Disclaimer: This blog is provided for education/information purposes and should not be used as an enticement to invest in any financial products
Options can have the risks of big magnified losses beyond the premium paid (e.g. put options). Good to learn by trying with "tution" money that can afford to lose but remember that the loss can much more that what you paid for the option and need to factor the extra as part of the potential "tution" costs.
ReplyDeleteThanks abc for your comments, will take care while investing in Options :) As with all investments, it is a delicate balance of Risks vs Returns. Will remember that risk management is extremely important! Thanks again :)
Delete