Learning About Options Investing From Boon Tee

In this video, I have invited my friend, Boon Tee ask him some options investing related questions.
Boon Tee's channel: / boontee
INVESTING
► Interactive Brokers kvli.link/ibkr
► Webull (free stock) kvli.link/webull
► moomoo Futu SG (free stock) kvli.link/moomoo
► Tiger Brokers (free stock) kvli.link/tiger
► uSMART (free stock) kvli.link/usmart
► POEMS Cash Plus kvli.link/poems
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► moomoo US (free stocks) kvli.link/moomoous
► Syfe kvli.link/syfe
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ROBOADVISORS
► Endowus (free $20) kvli.link/endowus
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► StashAway (50% off fees) kvli.link/stashaway
► AutoWealth (free $20) CODE "Tan Kel Vin" kvli.link/autowealth
CRYPTO
►‌ Gemini (free $10) kvli.link/gemini
► KuCoin kvli.link/kucoin
► Crypto.com app (free $25) CODE "kelvinlearnsinvest" kvli.link/cryptoapp
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LIFESTYLE
‌► EverDesk Table (up to $145 off) CODE "22+KLI" kvli.link/everdesk
► ErgoTune Chairs (up to $30 off) CODE "22+KLI" kvli.link/ergotune
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►‌ ‌ExpressVPN kvli.link/expressvpn
SOCIALS
► Instagram kvli.link/instagram
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► Twitter kvli.link/twitter
0:00 - Intro
1:18 - Experience In Options
1:54 - How Long Have We Been Doing Options
2:21 - Current Option Strategies
3:43 - Overall Loss Or Gain
3:54 - Naked Call
4:14 - Doing Options On Which Stocks?
5:34 - Risk Of Options?
6:35 - How To Reduce The Risk
7:12 - Naked Call On Meme Stocks
8:16 - 100% Portfolio On Options
9:35 - LEAPS Strategy
10:20 - What To Do When Option Goes In The Money
11:21 - My Experience On Rolling
12:20 - Options Returns
14:14 - Take Assignment VS Rolling Option
16:00 - When To Close An Option
17:29 - Recommendation Of Stocks For Options
18:58 - Option Advice
20:28 - Conclusion

[@BoonTee]

Thanks a lot to Kelvin for inviting me on the channel =) Thanks everyone for watching =)

[@alvintham6898]

Information overload hahah that goes to show just how much I don't know about options! Very insightful video and I love the dynamics between you guys! Great interview both!

[@DarenYoong]

Haven’t started on options yet and lots to learn. Thanks for the insights, Boon Tee and Kelvin!

[@BoonTee]

Thanks Daren, when is your turn?! hehe

[@petra74]

Yes, have to learn to leverage esp when you are bullish on TSLA.. go go go!

[@temasekb]

For starters, you can sell delta 10 20 for either weekly or monthly puts. I usually close around 80% profit. Most brokers give 2x to 4x worth of leverage based on portfolio value so just have to keep the risk ratio controlled to prevent auto liquidation incase the options gets too itm.

[@gomugomu4489]

Leverage is for advance option traders. Please protect yourself.

[@13skyburger]

@@temasekb if close, they will straight away deduct from your account? is it the same as buy back? how about rolling?

[@nelsongtc]

Thks for the info. There are really many things to learn. I wasn't too sure abt the roll functions until only lately. Otherwise i would have bought more time by rolling than exercising my put upon expiry.

[@cliftonaurelius3060]

My two favorite people on KZbin! Thanks for this amazing episode :)

[@13skyburger]

hi kelvin Please demo on how to do the roll option, buy back and close. many thanks.

[@ajahajah]

Good discussion on options! Boon Tee has explained it very well.

[@HoneyMoneySG]

Kelvin and Boon Tee together, my favorite guys!

[@KelvinLearnsInvesting]

When is Chris - Honey Money and Chicken Genius happening?!

[@HoneyMoneySG]

@@KelvinLearnsInvesting Honey Chicken Singapore 🍯🐔

[@BoonTee]

When is Honey Money and Kelvin Learns Investing happening?!

[@terrylee9659]

After listening I would like to do cash secure put for tsla. Can you teach me how to do it? I have the cash and really want to own Tsla through option.

[@shonendumm]

Hi Kelvin, can you share more about leaps strategy? Have u tried it before? Also, for selling puts, besides tsla/pltr/riot, which stocks do u sell? Personally, I sell like to sell PLTR, nio, and maybe Li, these

[@abhijitdas8617]

Nice location & informative video. Looks like Pasir ris beach. Kelvin seems shy...haha

[@mytwobaobeis190]

Nice vid up there😀

[@squalolo]

Insightful video. Kelvin, can you do a video on your thoughts about Employee Stock Options?

[@jade2215]

Thanks 🙏🏻

[@brandonyeo9617]

thanks!!

[@user-we1qd5ls7e]

Hi Kevin, example: Sold put with strike at $295, expiring in 30 days. Price dropped to $280. Do you close the trade, roll it to lower price and to a further date or wait till expiry date. Thank you.

[@munster1404]

I do purely European style indexes. Cannot tahan assignment, hahaha.

[@sarinjayaram8562]

Can we roll options in tiger broker?

[@willie3911]

Thanks Boon Tee and Kevin for the sharing. Would like to check with Boon Tee on usually how much % of stock amount you would use/limit as collateral to sell the naked options. Noted from Kevin past video that he limited to 20%. Reason of asking is because I have been selling naked option for the past one year, and using around 50-60% as collateral. I have received margin call once because my portfolio stock price crashed and the collateral is not adequate. Hence, would like to have some sensing on others preference on above.

[@BoonTee]

Thanks a lot for the question! I don't have a straight forward answer as I don't really know how you calculate the amount used as collateral. I am currently using IBKR, so my entire portfolio in IBKR will be used to support my options, I just need to make sure that the maintenance margin is met at all time. Options is only very small part of my portfolio. For instance my portfolio is ~sgd400k, and I currently have 4 put options on TSLA with maturity of around one week, and the strike level is very low compared to current share price. So the risk of liquidation is extremely low.

[@willie3911]

Thanks for the clarity. That’s help. ☺️

[@elynno9911]

Yaya Need more options investment knowledge

[@B3llo75]

Have you ever thought of selling naked put in the money and use the put premium to buy more call to be 100% leverage when you are confident that the share will go up ? Especially when the stock is at the hyper oversold region...

[@BoonTee]

I seldom buy options because I don't like the time decay of the option. Prefer selling options instead. Kelvin may have different idea though =)

[@fishphage2762]

Nice sharing, gentlemen.. do you have some general rule of thumb percent gain on when to buy to close your written options? some people say 50%. I normally stick to 50% but ready to go for higher percent when there are some crazy moves. also wouldn't it be great to sell options close to earnings with expiry on friday after earnings since there is high IV. the premium goes up with high IV and then IV crashes after the earnings.

[@BoonTee]

Hard to offer general rule of thumb because need to constantly reassess the outlook. For instance, if I expect that the share price might drop, then I will wait first. If I foresee that the share price might go up, then I will lock-in the premiums first by rolling. Trying to predict the movement is essentially trading (or gambling) so have to keep this part small. Main strategy is still owning stocks as time will be our friend.

[@CoolBeat]

very good topic on this video

[@BoonTee]

thank you for the kind words =)

[@waikikiblues]

I'm a simple man. I saw #naked in the thumbnail and clicked. And... ended up staying 20:48 for the knowledge. Thanks Kel Vin and Boon Tee. 👍🏻

[@KelvinLearnsInvesting]

Ahh, i see u are a man of culture as well

[@SlashOMine]

Hi kelvin, any idea which platform i can use to do options but not with one lot (100shares) requirements because i am a broke man. Since we mentioned to sell puts on stocks we like, generally their share price is relatively high.. thank u for sharing and great video always👍👍

[@13skyburger]

option need at least 1 lot

[@abeautifulworld3902]

Hi Kelvin, can i sell covered call option using Tiger platform. I remember in an earlier video, you said this feature is not available for Tiger.

[@KelvinLearnsInvesting]

It's available. But you need to contact customer support to enable it

[@abeautifulworld3902]

@@KelvinLearnsInvesting Thank you.

[@andylee9591]

Hi Kevin , thanks for the informative video ! What is the place you shoot this video , looks nice :)

[@KelvinLearnsInvesting]

Tampines sun plaza park, romantic place

[@chinweiyeeng3157]

When I sell naked put option in tiger, the stock price drop and I’m on high risk exposure. Tiger liquidate my others stock. May I know how to avoid this?

[@KelvinLearnsInvesting]

Either sell at further strike or add more cash to the account

[@DerLostPotato]

the first thing i noticed in this video is the mcdonald eat-in sticker lol

[@KelvinLearnsInvesting]

Haha, you are loving it

[@fynnneo4536]

what is the rolling sell put means?

[@KelvinLearnsInvesting]

Its just closing the current option at a loss, then sell a option to cover the loss. Can check out this video kzbin.info/www/bejne/bnKqZXysf6dnesU

[@gkenneth1]

Hello, may i ask, can you do rolling put option on tiger brokers? or is that only on interactive brokers? thanks!

[@KelvinLearnsInvesting]

In ibkr, there's the roll function. In tiger i think dont have, but u can easily do it by: - buy back current option - sell new option

[@gkenneth1]

@@KelvinLearnsInvesting Ohh it's just more manual, thanks for the help!!

[@jasonloy33]

If after selling a put for 30 days expiry, if the stock goes up in share price and you hit 75% of the premium in say like 2 days, can we close it. Any impact ?

[@KelvinLearnsInvesting]

Yup, i would definitely close it because no point waiting 28 more days to earn 25%. No impact

[@jasonloy33]

@@KelvinLearnsInvesting Thanks Kelvin for the reply, really appreciate it.

[@counterfake2501]

Thankz for the video Just curious here, Can trading option replace day job

[@KelvinLearnsInvesting]

It's possible if the trader is good enough

[@counterfake2501]

@@KelvinLearnsInvesting thank

[@wavehunter1339]

Thanks guys for the video and for sharing your insights. I know absolutely nuts about Options Trading and therefore I am entitled to ask any noob question and be forgiven. From what I have been hearing in this video and your other videos as well as the videos of the other KZbinrs, it seems like every good Options trader will want to sell PUT Options on a good bullish uptrend stock which by definition being bullish will therefore have a low probability of retracing to the Strike Price which then makes selling such a PUT Option to earn the premium as easy as betting a sum of $10000 that Spore will not experience an earthquake within the next 30 days. That being the case, then why would any other Options trader want to or need to buy such a PUT Option since the probability of an earthquake happening here within the next 30 days is almost zero. It will be wasting money to buy insurance to guard against an outcome which will most probably not happen. And needless. Just like buying insurance to bet that the Singapore Lions will not make it to the next World Cup Finals. This one no need to buy insurance at all. Triple confirm they wont make it one. Not just for the next World Cup. But forever. So my point is - if every good Options trader will do the same thing, ie. sell PUT options on bullish uptrend stocks which is the almost Bao Jiak bet, then which Options trader will want to take the other end of the bet ? Sorry I wrote so little. [GRIN]

[@skynel92]

Mcdonalds hahaha, thanks for sharing.

[@KelvinLearnsInvesting]

Hidden advertising! (Or just forgot to take it off)

[@BoonTee]

thanks for watching!

[@MrRazorteeth]

Kelvin eat mcdonalds instead of cai fan that day. Must be rich

[@BoonTee]

@@MrRazorteeth have to spend the money earn from selling options

[@patricklyz1077]

Option is really good for earning extra income. I personally has been selling monthly cash covered puts on stocks I don't mind owning at the strike price I determined. Anyway, thanks for the video!

[@BoonTee]

thanks for watching!

[@ron2040]

Mind sharing the tix? I m looking for shares that are below 3 digits

[@hhancp]

Hi Kelvin, consider making a video about the recent bad news about futu/moomoo?

[@iwanhertono696]

Kelvin, do you know if we can do roll options via tiger broker?

[@KelvinLearnsInvesting]

I think need to manually buy back then sell again.

[@knlp]

When was this shot? TSLA at 860??😂 😂 😂

[@BoonTee]

Around third week of October

[@fadkat]

Hi sir, can I sell a naked put on TSLA at strike price 800 when my max buying power on tiger shows only 70,000? Will anything happen to my portfolio?

[@williamgoh5514]

I would suggest topping up your account if not you will be on margin.. Just for peace of mind, do secured cash outs

[@justbe3708]

Kelvin, You are very informative and explain in simplified way. Just want to ask you, I have IBKR, and received message for MSFT US stock dividend. How they deposit our dividend since our own account is Singapore DBS bank. How to check this amount deposited and do we need to pay tax or they deduct already.

[@p6h14]

Hi, it will pay to your IBKR cash account. They will deduct the dividend tax. You can login to your IBKR Reports section to check.

[@justbe3708]

@@p6h14 wow thanks for your reply. yes they deposited in my IBKR cash account, so we no need to pay any tax. Thanks

[@silent4fail]

What platform do you use for options trading, Kelvin?

[@KelvinLearnsInvesting]

I use ibkr

[@silent4fail]

@@KelvinLearnsInvesting Do you happen to know why, despite having a margin account on IBKR, I cannot trade short calls?

[@KelvinLearnsInvesting]

@@silent4fail Do you have enough collateral? In the app, check whether you have enough SMA. ibkr.info/node/66

[@ngym20s]

Which platform to use for naked puts ?

[@KelvinLearnsInvesting]

I use ibkr

[@ngym20s]

@@KelvinLearnsInvesting thanks for reply. Is it only ibkr can do naked put ? Can use moo moo or other broker ?

[@KelvinLearnsInvesting]

@@ngym20s All the brokers allow you to do naked as long as you have enough margin to do it

[@InvestingEducation]

Nice video. We shld do a collab too one day here in sunny singapore

[@KelvinLearnsInvesting]

Lai lai haha

[@InvestingEducation]

@@KelvinLearnsInvesting I can talk abt etoro

[@ahtoad]

Would you guys recommend selling monthly or bi-weekly options?

[@KelvinLearnsInvesting]

Tastytrade found out that monthly has the best risk reward. I started with weekly, but changed to monthly now. I think bi-weekly is possible, just try it first, you can adjust accordingly

[@ahtoad]

@@KelvinLearnsInvesting thanks kelvin!

[@choonannchong2284]

Hi, any good platform to recommend for option?

[@KelvinLearnsInvesting]

I'm using ibkr

[@choonannchong2284]

@@KelvinLearnsInvesting u have reference code that I can use

[@deepsk6720]

The thought to avoid company with Low IV is wrong. I suggest playing put options on fundamentally strong company so If you get assigned It’s fine because you know the company has high growth and you can hold or sell call options. Playing with high IV stocks is dangerous although premiums can you make you (wet) with assignment you will be screwed if the stock starts crashing.

[@AnshuSingh-ii1gf]

really like your videos. If I get a chance to meet you, I would be more than happy.

[@uncletan888]

Is there a time zone now? Tesla stock price 21 oct 2021 is $865.80. Why i google now is $234.30? What happen?

[@KelvinLearnsInvesting]

I think there were 2 stock splits

[@uncletan888]

i found out is about stock split. 5 to 1 ratio

[@chilledgamezone4950]

Hi kelvin. Im thinking of trading put options on amazon stock. Im looking at strike price of 3000. (Stock never falls this low nearly 8 months now). I think it is lower then 0.3 delta. Maybe 0.2. It is a premium of about $1k. Im using margin to fund account. Is my understanding correct that each month i can collect 1k as income doing this.?

[@KelvinLearnsInvesting]

Yes its considered income. But do u feel using $300k to earn $1k is a good return?

[@chilledgamezone4950]

@@KelvinLearnsInvesting also.. because on margin you don't need 300k in the account you see

[@KelvinLearnsInvesting]

@@chilledgamezone4950 Ah, true. As long as it makes sense then it's alright :)

[@ioknoym]

To have a good night sleep, keep a 25%-30% price gap between the current price and your strike price. Or you can find your own level of comfort through experience.

[@BoonTee]

Exactly, you put it well

[@ron2040]

Naked call, booty call lol... All also a call away

[@abutaymiyyahlectures]

tsla $860 good old days

[@popocucu7749]

No social distancing ah?

[@eatyourbraincoco5761]

12 years in financial industry and rate himing 6 out of 10. And kelvin not in finance industry and he rate him higher. Either he is over humble or really cmi.

[@BoonTee]

Just felt there are so many things that I don't know. For instance, options can be quite complicated, basically you need to understand how options work, and you need to have good technical analysis skill or sense on the market in order to form opinion on short-term trend. I don't want to give peoples impression that making money using option is easy.

[@toosnaguy]

I would prefer Kelvin find a guest who can be more transparent and sincerely willing to share knowledge

[@BoonTee]

Hmm... Anything would you like to know more?

[@toosnaguy]

Nothing

[@BoonTee]

@@toosnaguy Just let me know if you have any question, always happy to share 🙏

[@13skyburger]

@@BoonTee hope you can do a video demo on how to roll, close or buy back your option. it will help alot.. thanks in advance

[@coolmagnifico]

I find this vid awkward. But anw learnt alot from kelvin. Stay cool man

[@BoonTee]

Why ah? Coz the guest like dunno the stuff?

[@13skyburger]

think not bad already for first time.

[@maxxscreen]

The vid is on 69 likes now. I want to like the vid, but I want it to stay as 69

[@KelvinLearnsInvesting]

69? Why not 6969