 You want to buy 100 shares of Google at $110 but right now the price is too high, what should you do? Most of the time, investors will just keep on waiting and waiting and hoping that the price will fall to the price that they wanted But do you know that you can actually use options to collect potential passive income while waiting for the stock price to drop to your ideal purchase price? If you want to learn how you can actually potentially make more income while waiting to buy the shares on the dip, then keep on watching This is Chloe and welcome back to my channel, be all in one place for you to learn about stocks, investing, as well as options If it's the first time of you coming to my channel, remember to hit that subscribe button as well as the notification bell so that you will not miss out any of my future updates Early thumbs up is also appreciated because it will tell you to algorithm that you find this video helpful and it will actually push out to more people to inspire them to start investing safely Warren Buffett once said, the stock market is a device to transfer wealth from the inpatient to the patient So in order to become a successful investor like Warren Buffett, patience is key But you may be wondering how long more do I have to wait before I can buy the stocks? And what if the stock price takes forever to come down? While waiting, is there anything that you can do to potentially generate more income because we all know that time is money That's why in this video, I'm going to share with you a powerful option strategy to help you to do that And later on, I will also be logging into the brokerage platform for you to learn how you can initiate this option strategy for yourself I also want to give a special thanks to Moomoo SG for sponsoring this video Let's get started First thing first, what is options? Basically, options are financial contracts that allow investors like you and me having the right or obligation to buy or sell a stock at an agreed price within a certain timeframe Just like how you can buy and sell a stock, you can also buy and sell an option contract And there are two types of options The first one is put option and the second one is call options And in order for you to buy stocks on the deep and potentially generate more than 2% per month while waiting for the stock price to fall You can consider using sell put options What does selling put option means? When you sell a put option on the stock, for example, Google, it basically means that you are promising to buy 100 shares of Google at the price that you want And in return of you making this promise, you will receive some money called premium Now to make it easier for you to see, I'm going to login into the Moomoo SG platform and show you how you can do that as well For example, you want to buy 100 shares of Google at $110 But right now the stock price is $115, which is a little bit too high for you And that is why instead of just waiting and doing nothing in between You can actually choose to sell a put option at strike price 110 Which is exactly the price that you want to buy Google in the first place By doing that, you are making a promise to buy 100 shares of Google at $110 And you will only need to buy it when the price drop below $110 There are many different options expiration date for you to choose from And in this example, I'm choosing 16 of September as a demonstration Change your options quantity to 1 And immediately you can see that you will get to earn an option premium of $190 And if you calculate your return on investment using $190 Divide by $11,000, which is the amount of money that you need to set aside to buy 100 shares of Google Your return on investment is actually more than 1.7% in about 21 days And if you translate into a monthly ROI, that is more than 2% If you are wondering what strike price to choose from Well, there are many different strike price as well You can choose minus 1, minus 5, minus 10 The general rule of thumb is, choose a strike price as below the current stock price Because you only want to promise to buy something that is below the market price And you can choose to do a sell-put option less than 1 month So that your ROI will be the most optimal And that also means that you can potentially collect income again and again Months after months But most importantly, before you sell a put option, you need to ask yourself this question Is this a great company that you are willing to buy 100 shares? And secondly, is this the right price to buy? If you want to learn the 5 key metrics that Warren Buffett always looked at Before investing in any single company, then do check out the video right here Now the next question is, what happens after 16th of September? If Google's stock price dropped below $110 You will have to fork out $11,000 to buy 100 shares of Google Which is exactly what you want to do in the first place Plus, you also get to keep the $190 premium that you earn in the first place However, if the stock price stays above $110 You will not be able to buy 100 shares of Google Still, you get to keep your $190 or premium So in both scenarios, it's a win-win situation That's it You just learned this powerful option strategy called sell-put And how you can use it to your advantage to collect some premium While waiting for the stock price to drop to the price that you want There are so many options strategies out there I can't possibly explain everything in this video And that is why if you want to learn exactly how you can get started investing With the power of options Then do join us in our upcoming Options Next Level Masterclass We'll be sharing with you 3 powerful option strategies for you to take advantage of All you have to do is to register for your free spot via the link below And if you want to get started in your investing journey And wondering which account to open Then do consider MooMoo Because it's a very established brokerage That allows you to invest in diversified markets Including US, Hong Kong, China, Singapore and more Most importantly, it's also regulated by MAS Monetary Authority of Singapore Right now, if you open your account via my link below And find $2,700 Singapore dollars or more inside You will even get free shares as a welcome gift As well as my own private portfolio watch list To help you to get started your investing journey All you have to do is to fill out this Google form And notify me once you sign up and funded your account And I will send you my portfolio watch list within a week Please also note that this video is for educational purposes The stock that I share in this video Is not a buy or a sell recommendation Make sure you do your due diligence Before making any investment decision So that you can become an independent investor Lastly, if you want to stay up to date of my investment insights Then do join my Telegram channel Because I post constant updates over there With that, happy investing And I will see you in the next video See you!