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Showing posts from August, 2026

Deep-In-The-Money

If you are bullish long-term bullish on a stock yet cannot afford to own a 100 shares of stock, you can consider DITM call option in long theta ( at least a year ) to enjoy slow decaying. There are many benefits for doing this like improving your investment cashflow, enjoy ROI and reducing capital risk. How option price derived:          An option’s price (premium)= Intrinsic value + Time value (Extrinsic Value) Most of the option’s value comes from intrinsic value not time value. A stock price at $200, a DITM call option at $150 means intrinsic value is $50 . Typically from 80- 90 delta for options moves 1:1 with stock movement. DITM have minimal time value because their outcome is almost certain. The time value shrinks to $0 because market speculation decreases as expiration approaches. Long theta means lose less value per day, barely time premium to erode. Long theta is your friend!   Pick a long theta and choose right delta:    ...

Summary of August 2026

  Happy National Day! Singapore is celebrating 61 years of Independence Day. It never been an easy journey to where we are now, a country without nature resource, neighbour conflict and etc. Maximising manpower is the only solution; establishing strong military for peace, strict legislation anchoring fairness and an open economy, and constantly improving education systems for next generation stays relevant for their future. We thank our forefather built a peace and prosperity through blood and sweat for us. Majulah Singapura! How do I feel the Singapore market? I think Singapore is beginning to shape things up on attracting wealth inflow as its proof to foreign capitalists that we are neutral yet resilient on various crisis such as pandemic, oil, aging population, wartime ready, financial crisis and etc that most of the countries cannot address. Not only crisis-ready, we are also business-friendly, lower corporate tax with grants and incentives, attracting diversify foreign t...