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Daniel Lim

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Daniel Lim

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Stocks Discussion

NYSE (New York Stock Exchange)

Online Brokerages

Brokerages

Investments

What are some of the brokerages with options for trading the US stocks? Are there any additional fees from the brokerage for using options?
Daniel Lim
Daniel Lim
Level 4. Prodigy
Answered 1w ago
Tastyworks has been very competitive for trading options. 1USD per contract
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Personal Finance 101

Savings

Investments

Personal Finance Books

Investment Courses

How else can I improve my financial IQ?
Daniel Lim
Daniel Lim
Level 4. Prodigy
Answered 3w ago
Indulge! https://www.youtube.com/playlist?list=PLUkh9m2BorqlvUMO3nMwXOG-VIqxmAh3t (MBA Valuation in the Uni of NYU Stern Course) http://equity-research.com/wp-content/uploads/2010/04/Wiley-Valuation-Measuring-and-Managing-the-Value-of-Companies-Fourth-Edition-University-Edition-2005.pdf Focuses on discounted cash flow model
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Investments

Interactive Brokers

Stocks Discussion

Online Brokerages

SeedlyTV S2E05

I’m planning to trade options on InteractiveBrokers after I turn 21 in October. Is $2000 a good starting amount for it?
Daniel Lim
Daniel Lim
Level 4. Prodigy
Updated 3w ago
TLDR; No, not enough. Here's why, 1. Time works against you. Theta. Options premiums (Price you pay) = Intrinsic value (ITM Calls/Put Strike Price with Stock price) + Extrinsic value (Price of time). Option contracts extrinsic value depreciates significantly in the last 30 days. The cause of it is due to the fact that as the contract nears the expiration date. The probability of any stock movement towards your favour depletes exponentially . Hence, it has less value as people aren't willing to take the risk. 1. ITM plays are expensive. BUT safe . If you purchase a contract that is already in your favour since day one a.k.a ITM contracts, Naturally it'll be more costly. A share in SPY right now is $292. Lets say, an Ask strike price of $290 SPY Call 7/17, expiration in 67 days. Option is priced at USD 14.50. A single contract would cost USD 1450. Considering all greeks. You need SPY to hit $304.50 by expiration for you to breakeven. Thats a 4.19% share movement over 67 days. Implied volatility is 31.5%. In high volatility times like these, anything can happen. ! 2. OTM plays are cheap. But way more riskier. OTM plays require HUGE amount of stock movement if your favour inorder for you to breakeven. Take another example Ask strike price of $294 SPY Call 7/17, expiration in 67 days. Option is priced at USD 11.99. A single contract would cost USD 1199. Considering all greeks. You need SPY to hit $306 by expiration for you to breakeven. Thats a 4.68% share movement over 67 days. Implied volatility is 31.5%. Doesn't seem too shabby right? just a 1.5% difference from an ITM call. However, if the SPY expires OTM (<$294) your contract is worthless , you have lost all your investment. The odds are stacked against you. ! 1. Option contracts are trading in USD. I believe your 2K is in SGD. You would only be able to purchase one contract. And if risking your whole entire portfolio on a single trade seems find to you. You will really need to reasses your risk management!! If everything seems like greek to you, pun intended hahah, I suggest you do more research, learn more, build your capital, hop on to reddit options page and see what people are doing and the responses. Here are some useful videos! https://www.youtube.com/playlist?list=PLPVve34yolHY43YaBegHMzN9WjrTnQfFr https://www.youtube.com/watchv=HCcF7XbXEWo&list=PLPVve34yolHYp18r6vDmL8bK2R-OyXzCu I would suggest you use the money to day trade stocks that open during premarket hours. If you are hell bent on trading options, I would suggest using tastyworks brokerage. (As seen in the pictures above) The UI/UX graphical representation is extremely helpful. The comissions are USD 1 per contract on purchase. There are no fees in selling. Buying & Selling US stocks are free as well, just like robinhood. No custodian fee. No inactivity fees. DBS Remit can be used to wire money into tastyworks account. I have done it and it requires zero transaction fee. The FX rate is also extremely competitive for lumpsumps. Downside is only the fact that there is a USD 45 withdrawal fee in tastyworks. Cheers on your investing Journey!
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Online Brokerages

Brokerages

Investments

Stocks Discussion

NYSE (New York Stock Exchange)

What is the cheapest brokerage to use in Singapore for US stocks?
Daniel Lim
Daniel Lim
Level 4. Prodigy
Updated 3w ago
Tastyworks has no brokerage fees for buying and selling of US stocks.(Just like robinhood) Unlike Saxo it does not have custodian fees or inactivty fees either. Tastyworks allows SG non-US residents to register for their brokerage. DBS Remit can be used to wire money into tastyworks account. I have done it and it requires zero transaction fee. The FX rate is also extremely competitive for lumpsumps. Downside is only the fact that there is a USD 45 withdrawal fee in tastyworks. Cheers on your investing Journey!
👍 0

FIRE Movement

Investments

Brokerages

Online Brokerages

Stocks Discussion

SeedlyTV S2E05

Should Singaporeans do Magic Formula Investing? Is it recommended for people with low starting capital of $1-2K?
Daniel Lim
Daniel Lim
Level 4. Prodigy
Updated 3w ago
Tastyworks has no brokerage fees for buying and selling of US stocks.(Just like robinhood) Unlike Saxo it does not have custodian fees or inactivty fees either. Tastyworks allows SG non-US residents to register for their brokerage. DBS Remit can be used to wire money into tastyworks account. I have done it and it requires zero transaction fee. The FX rate is also extremely competitive for lumpsumps. Downside is only the fact that there is a USD 45 withdrawal fee in tastyworks. Cheers on your investing Journey!
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Investments

Career

Economics

Stocks Discussion

Online Brokerages

SeedlyTV S2E05

Which industry will forever be safe whether there is a financial crisis or boom?
Daniel Lim
Daniel Lim
Level 4. Prodigy
Answered 4w ago
Military defense stocks
👍 0

SeedlyTV S2E04

Investments

Robo-Advisors

Will we get platforms like Robinhood or M1 Finance in Singapore?
Daniel Lim
Daniel Lim
Level 4. Prodigy
Answered 4w ago
Tasty works exist for Singaporeans
👍 0

Investments

Savings

I'm a student how to earn 10000 In 3 months time?
Daniel Lim
Daniel Lim
Level 4. Prodigy
Answered on 02 May 2020
Wall Street Bet is your best chance.
👍 0

Investments

Stocks Discussion

Undergraduate

Hi i’m a 20y/o student. i have studied investing but i’ve always hesitated. how do you find the courage to begin?
Daniel Lim
Daniel Lim
Level 4. Prodigy
Answered on 26 Apr 2020
Investment is a craft. Not science. Not art. There are no absolutes. No one is more talented than the other from birth. It is through practice and constant valuation that you can grow your craft. Imagine it as cooking. You can read as many cook books. You can study every ingredients. Heck you could even recite to someone how to cook a dish but not entirely sure how to exactly do it. And the only way you can TRULY learn how to cook is to start cooking. The first time you cook, the food may be too salty, too plain, too dry, too fibrous, too wet, burn down a kitchen, waste all your money yada yada yada you get it. But the only way you can truly learn and be good at it is to keep doing it. Keep cooking. Keep testing. Get better at it. I dont deny that some are luckier than others, some have a knack at it, some have a better temperment and faith in something that isint certain. However, it doesn't deny the fact that there are common traits in every valuation. So to find your courage, ask yourself what use is there if I have the best cooking tools, the best materials, access to the best ingredients if I don't use them? Just as money is only truly yours when you spend it. Knowledge is power only when its applied. Risk exists when you have uncertainty. Only when you are scared can you be brave. Your courage will only come when you fear what is to come.
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