Have you ever heard about options trading? It’s a strategy that has the potential to boost your returns, generate income, or even hedge your existing portfolio. But let’s be honest, all that talk of strike prices, expiry dates, and Greek letters can be confusing at first.

The good news is you don’t need to take a finance degree to get started. Even basic options strategies can enhance your returns. For example:

  • Buy a call option if you believe a stock price will increase (bullish).
  • Buy a put option if you believe a stock price will decrease (bearish).
  • Sell a covered call to generate income from your existing stock holdings.

If you’re willing to invest some time in learning, options trading can be a powerful tool to complement your existing investment strategies and improve your risk-reward profile.

Finding the Right Platform for Option Trading

In the past, I used platforms designed for professionals such as TD Ameritrade, which could be overwhelming for beginners. Since they were taken over by Charles Schwab, I started to explore option trading with moomoo, one of my favourite platforms designed to help regular folks like you and me, whether you’re a complete beginner or have dabbled in options before.

I am surprised to see that moomoo makes it so easy to use, even in a mobile app.

Learning Options on the Go

While this article won’t delve into the specifics of options trading (there are plenty of resources online!), moomoo offers a ton of educational resources specifically designed for beginners. Bite-sized articles, video tutorials, and in-depth strategy guides are all easily accessible within the app under “Discovery -> Learn -> Options.”

These bite-sized courses are easy to understand and don’t require a huge time commitment. There’s even an “Option Master Exam” to test your knowledge after learning.

Checking Options Data Made Simple

If you’ve ever looked at an options chain before, you know how confusing those rows and columns of numbers and letters can be. I always thought I needed a big screen for that. Moomoo cuts through the clutter, presenting everything in a clear and organized way on their mobile app. You can easily scan option contracts, see key information, and even visualize potential outcomes.

Let’s use Apple stock options as an example:

  1. Search for “Apple” and you’ll see the stock chart.
  2. Click “Options” to view the option chain.
  3. Click “Analysis” for additional information such as trade statistics, volume by strike price, and option interest by strike price.
  4. Click the information icons to understand any unfamiliar terms.

Don’t worry if some of this information is new; that’s part of the learning process!

Trade and Learn Options Anywhere

Moomoo’s mobile app is a mini version of the desktop platform, allowing you to execute trades, monitor your positions, and analyze options while you’re on the go.

One of the features I find most helpful is the list of common options strategies displayed next to the “Trade” button. When you select a strategyd the screen automatically adapttoor the chosen strategy’s inputs.

When you click on the strategy, you can even get a visual illustration of the potential Profit and Loss based on the stock price.

Moomoo also automatically pull out the “profit and loss calculator” and shows your potential profit or loss at different stock prices – a sneak peek into the future!

Powerful Option Trading Tools

I think whether you are a beginner who needs basic features, or you are a more experienced investor that requires more advanced tools, moomoo gets you covered:

  • Advanced Option Chains: National best bid and offer (NBBO), transaction details, real-time quotes, and advanced display options and screening functions.
  • Multi-Leg Option Strategies: Over 11 customizable strategies for added flexibility and potentially reduced margin requirements.
  • Pro-Level Option Analysis Tools: Tools like P/L analysis, options price calculators, and options volatility analysio help you refine your strategies and navigate different market scenarios.
  • Educational Resources: Free trading courses and tutorials, along with a community forum to connect with other options traders.

Moomoo’s Free Options Trades Promotion

Like all Singaporeans, we love deals. So yes, you will not be disappointed.

First of all, when you sign up as a new user of moomoo, you get a “Starter Kit of up to S$970*” (* Refer to the terms and conditions)

Specifically for the Option Traders, Moomoo SG currently offers a free-commission option promotion. You can qualify for up to 100 free option trades per month simply by making at least one trade on any US stock, ETF, or option in that calendar month.

Refer to the full terms and conditions here.

How to open an account with Moomoo SG:

Opening a Moomoo SG Universal Account is easy:

  1. Download the moomoo app and verify your mobile number.
  2. Login with your SingPass or manually enter your details.
  3. Review the risk disclosure and submit your account opening application.
  4. Once approved, fund your account and start exploring the world of options trading!

Let Me Summarize…

Moomoo is more than just a platform; it’s your go-to resource for options trading. They provide the tools, resources, and a secure environment to help you navigate the exciting world of options. So, whether you’re a complete beginner dipping your toes in for the first time or an investor looking to expand your horizons, moomoo can be your options trading ally.

Ready to Get Started?

Click this link to open a Moomoo SG Universal account today and begin your options trading journey!

Disclaimer: Options trading involves risks and is not suitable for all investors. Always consult with a financial professional before making any investment decisions. This article is for informational purposes only and should not be considered financial advice.

All views expressed in the article are the independent opinions of the author. Neither Moomoo Singapore or its affiliates shall be liable for the content of the information provided. This advertisement has not been reviewed by the Monetary Authority of Singapore.

About the Author

Ivan Guan is the author of the popular book "FIRE Your Retirement". He is an independent financial adviser with more than a decade of knowledge and experience in providing financial advisory services to both individuals and businesses. He specializes in investment planning and portfolio management for early retirement. His blog provides practical financial tips, strategies and resources to help people achieve financial freedom. Follow his Telegram Channel to join the FIRE community.
The views and opinions expressed in this article are those of the author. This does not reflect the official position of any agency, organization, employer or company. Refer to full disclaimers here.

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}
>