Of course. The wben-8 form does not mean you will get the full dividend. On the contrary it tells US govt to treat you as an alien and subject you to full 30% dividend tax.

There's no way of running from it unless you buy Ireland domiciled etf or have an Ireland trust and use the Ireland trust to buy US stocks and ETF. *hint Pandora papers*

They won't give you 1 shot rm10k. Most likely 10k spread out over 5 months or 10 months.

Only buy options if
1) market is super red and things are like 30-70% discount. Otherwise don't bother.
When you are selling options you are basically the insurance/casino company and insurance and casino usually wins majority of the time. If you don't scree it up.
2) as a hedge if you think market is going down.

Avoid saxo at all cost. They are expensive and only good with their marketing.

Double post

This post has been edited by Ramjade: Apr 1 2022, 09:03 PM

If you want to do options interactive broker, TD, first trade.
Skip stuff like moomoo or tiger.


Cause it's the top and best electric car maker and it's just getting started. It still have years of growth ahead of it

Go watch some of chicken genius video and you will understand.

This post has been edited by Ramjade: Apr 3 2022, 06:07 PM

1) is buy leaps. Deep in the market call say 1-2 years expiry date.

Cause options is leverage. When you buy leaps options when price is down, when the stock price recover or shoot up, your options value shoot up more than the stock price.

You then sell your options for money. There's no rolling.
You can sell it or some hold until like say 6 months until expiry and them sell it off cause beyond 6 months the options value will decay very fast.

That's how Nancy pelosi and husband makes money by buying deap in the money call options on companies like crowdstrike, Tesla, Nvidia when it's cheap. Nancy pelosi and husband have been outperforming the s&p500 and nasdaq100 because of their options.

That's how some people become rich on Tesla when no one wants it.they loaded up like crazy. Then when Tesla shoots up, their options increases multiple time.

That's how deepfvalue got rich through GameStop saga. He bought 2 years call for like 13-15. When GameStop shot up to like 1xx, his options became worth millions.

This post has been edited by Ramjade: Apr 5 2022, 03:05 PM

Actually no. Maximum you lose is the amount you paid for 1 contract. That's it. Nothing more or nothing less.

Buying 1 contract = 100 shares but = lesser value than buying 100 shares outirght. Don't believe me go and do a simple Google of buying saying say 100 Tesla shares Vs buying 1 deep in the money call options for Tesla. See the difference?

If the options is deep in the money, you can exercise the options you bought or 100 shares. Those 100 shares is worth something provided the company is still around.
As long as any options is deep in the money it will auto exercise upon expiry date.

You will lose money only if the company goes to zero. Buying 1 contract will make you lose less money Vs buying 100 shares outright if the company goes to zero.

But if your are selling naked calls the risk can be a lot if you domt have the collateral to back it up.

I am talking about buying deep in the money calls here.

Another strategy you can follow is chicken genius strategy. Sell at the money put 1 month out. On expiry date, just buy back the put to close it. But he only does it on Tesla.

If you know what you are doing with options, it's next best thing since sliced bread. I have been making usd400-450/week just by selling options. Not much but better than nothing. The USD400-450/week really help to refill my money chest faster than my salary or dividends. That's why I don't do dividend investing anymore. In fact this week those USD400-450/week paid for my 10 shares of Starbucks aka I am getting 10 free shares of Starbucks

This post has been edited by Ramjade: Apr 5 2022, 04:35 PM

See my edited reply.
Go watch Benjie options, pandrea finance, dream green show. That's basically how I learn my options.

I am not as brave or as loaded as chicken genius.

This post has been edited by Ramjade: Apr 5 2022, 04:37 PM

Only do this when things are cheap like in March 2020 crash. Or like stable companies like apple. If you don't think apple won't be worth more than it is now in 2 years, then don't bother with leaps.

Agreed. That's why I reserve leaps for stocks which are beaten down or in a severe bear market.

Good they open mouth cause market seems to forget that feds need to hike interest rate aggressively.
Time to wait for fear to set in and scoop up the bargains.

As an investor, I love red market. The redder it is and the longer it is the, better for me.

This post has been edited by Ramjade: Apr 7 2022, 08:14 AM

I need it to continue until end of this month. That's when additional cash will come.

That's what happen if you print money so much.

Of course. Just activate trading permission for LSE.

Let's wait and see if interest rate at 6% will do the trick. Covid did the trick but stupid fed went and pump so much money into the system it halted the crash. It was spectacular as basically everyday open, kena circuit breaker.

This post has been edited by Ramjade: Apr 8 2022, 09:52 AM

Now it's Tina. But if interest rate at 6%, I dont think Tina is anymore into effect.

Depends on your stock. You can do it alone with one stock like Tesla or you can use multiple combo.

I used multiple combos like upstart, crwd , home depot, Nvidia, amd, tsmc, Airbnb. Capital needed around usd100k which if conservative gives you around 20%p.a. Good enough for me.

First rule of selling puts is you need to be comfortable buying 100 shares at the strike price you choose.Like I am comfortable picking up Airbnb in 135-140 range so if it's near that price, I just sell covered put on it easily netting me usd40-80/contract.

Another one is amd, I am ok with picking up another 100 shares at Usd98, hence that's my strike price.

For covered calls is a different story. You want to try to hold on to your stock. For stuff like crwd I set my premium to usd30x4x/week.For tsmc, I set t to usd2x/week. Every stock is different. If you have been selling covered call for a while you will know where is the safe and sweet spot where you can sell and the options expired worthless. The further you go out, the less liquid it gets and premium may become not worth it.

If you don't have capital for it, focus on one company say amd, or palantir. Dont tell me you can afford 100 shares of palantir? 100 shares of palantir, can easily give you usd10/week.

If you don't have the capital or refuse to use margin, another way you can do is do a poor man covered call. Buy a deep in the money call options expiring say 2 years old. Then start selling calls on it. The capital for deep in the money call is lesser than capital required to buy 100 shares.

Another reason is I use interactive broker and uses margin. As long as your stock does not hit the strike price for puts, and your cash balance remains positive, no interest will be charged

Even if it hits, as mentioned I am happy buying at those price and if my cash do turn negative, interactive broker have very low margin rate like 1.5%p.a so my interest is like USD400-1000/year which is easily cancel off by consistently selling calls (1 week of selling options easily wipe out one year worth of interest) Hence subsequent premium from selling options goes to paying down the principal). Of course the more negative your portfolio, the longer you have to sell options just to wipe out the interest. Above is just an example.

Of course with interest rate going up, I will reduced the amount of covered put I opened going forward.

This post has been edited by Ramjade: Apr 8 2022, 09:30 PM

Actually options is just another tool.
Most important is save minimum 50% of your take home pay and invest the rest.
Don't get trapped by lifestyle inflation.

Ok. Let's continue here. Big caps are what's keeping the market up since November sell off.
If you take out the big cap from s&p500 and Nasdaq (the faang), market should be more red.

Of course once the stock price reach your stirke price or go below your strike price. That's why is aid you must be ok/comfortable buying 100 shares at the strike price you choose.

If you are not ok, don't bother. If course if you don't want to buy, there are 3 ways around it.
1. As it approach the strike price, just buy back the options at a loss.
2. When it's at or below the strike price buy back the options at higher loss than (1)
3. Get assigned and start selling calls on it at the strike price the following week.

If single stock too risky for you, do it on etf. And earn extra 0.5-1%per month. (True story from someone I know who only do options on spy)
Spy and qqq are good ETFs to do options on as it's very liquid hence smaller spread.

This post has been edited by Ramjade: Apr 10 2022, 12:56 AM

Because they are the one keeping the index afloat hence that's why I said that is some mighty defensive selection.

Of course. It's so near my price now. Another USD100 drop should be enough to push it into my target. Then I will just pick up another share. Hoping to get to 5 shares so that when split happens, I can finally do covered calls on goog