Market Musings

It's where I share all my best stuff, educational articles, market insights, ideas and everything else that matters for happy trading.

What is a covered call strategy? Key Concepts and Examples

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What is a covered call strategy? Key Concepts and Examples

The covered call strategy is one of the most popular options trading strategies that involves selling call options against stock that you already own thus enhancing investment returns on a stock holding.

Making Money with Covered Call

Let's dive deeper to understand all about it.

Imagine, over the years, you have been building your stock portfolio, investing through monthly company stock purchase plans only to realize that its performance is not in line with overall market. Or...

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Meet Siew Wan - OptionPundit's Newest Rising Star!

Meet Siew Wan - Our Newest Rising Star.

Siew Wan, a freelance graphic designer based in Selangor Malaysia. She lost her full-time job during the pandemic and she needed a second source of income which drive her to start her options trading journey.

In late 2020, after attending the Options Success Formula (OSF) program with OptionPundit, Siew Wan managed to generate 24% in 4 months’ time, and she got back 4x of the tuition fees amount.

In this series, Siew Wan shares about the...

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Is Financial Market in a bubble now?

During the last several weeks, many of you reached out to me asking following questions:

  • Is the market in a bubble?
  • It is all time high and experts keep saying that market is about to crash but it keeps going up. What's you view?
  • Are there some simple ways I can decide to stop out without complicating things?

How to Manage Exits in a Simple Way

So, to answer these questions, I decided organize a small interactive session via Facebook LIVE. I answered above questions and also added a...

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Main Street's Option Market Wizards: Tony

Almost every trader knows about Warren Buffett, George Soros, Ray Dalio, Bill Ackman, or other billionaires Wall Street stock wizards.

But what about the real traders from Main Street?

Are there any success stories worth emulating?

Find out more as I answer this question by conversing with top real traders that I had the good fortune of either mentoring or working with.

This special series is called "Option Market Wizards" where I will introduce you to some good traders who started with...

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The Power of Option Gamma

gamma traders insights Mar 09, 2021

Here is an application of Gamma in play with regards to "throwaway trade".

Just observe how option prices are changing in the last 30 seconds before the market close.

Use the comment section below to share key points you picked-up, or questions you have or to share thoughts on how we can make it better for future episodes.

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Marvelous Monday - TSLA & ARKK

What a week! We have incredible market movement during last week!

SPX crashed from an all-time high of $3914 to about $3723. A movement of almost 200 points! Around Friday, SPX moved from around $3730 to $3840! 

We can see similar movement on NDX as well. There is a Head & Shoulder forming on NDX for those who know about technical analysis. 

Even though NDX rallied on Friday, I will still pay close attention to the price level of around $12,800.

1 company that has...

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Marvelous Monday

Wow, what a marvelous Monday!

Dow Industrial rallied almost 2%, S&P500 rallied almost 2.5% and Nasdaq was up 3%!  This rally came on the heels of a turbulent week when Nasdaq, tech stocks and growth stocks were on  a downward trend.

So Friday hugely down when S&P dropped almost 50points in the last minutes of closing and Monday was hugely up when S&P rallied almost 2.5% in day!!!

What do you make out of it?

There were essentially two camps. 

One camp is that of...

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Meet Cecilia - OptionPundit's Newest Rising Star!

rising stars Jan 18, 2021

Meet Cecilia - Our Newest Rising Star.

Cecilia is a mother of 2 from Kuala Lumpur, Malaysia, and working as a concept engineer in the Oil & Gas industry. Cecilia has some prior background in value investing. However, with her responsibilities as a mum, while juggling her work in a fast-paced demanding Oil & Gas industry, she finds it hard to find time to research companies. 

In the midst of finding another method, her friend Dianna recommended her to explore...

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The Butterfly Effect

How you get better at options trading or for that matter any new specialized skill  largely depends on your attitude towards learning.

Age old wisdom says "to stop learning is to stop growing". However, when faced with something new, unfamiliar subject, our mind's first reaction is to resist the change or go back to our comfort zone.

Let me tell you a beautiful short story that explains the importance of "the process" of learning an growing.

The Butterfly

Once a little boy was playing...

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Meet Sky - OptionPundit's Newest Rising Star!

rising stars Jan 10, 2021

Meet Sky - Our Newest Rising Star.

Sky is from Singapore and has been investing for more than 5 years prior to coming in contact with OptionPundit. Sky primarily focused on stocks. After initial unsuccessful attempts with options almost a decade ago, he restarted trading options actively just a few years ago.

In 2020, after attending the Options Success Formula (OSF) program at OptionPundit, Sky managed to generate over US$20,000 profit on his portfolio!

Watch the video to...

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