 You have hundreds shares of Tesla and you believe that long term the stock price will go up. But lately, the market is behaving like a seesaw going up and down, up and down, and you're wondering exactly how can you potentially generate additional passive income while holding onto the Tesla stocks. If you want to learn how can you potentially make a passive income of more than 5% while holding onto Tesla stocks, then keep on watching. That's all I've got for you guys. I'm Kaili. This is Chloe. Welcome back to my channel. I'm 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 the subscribe button as well as the notification bell so that you will not miss out on any of my future investment updates. An early thumbs up is also appreciated because I will tell you to algorithm that you find this video helpful and it will actually help to push out to more people to inspire you to start investing safely. Warren Buffett's teacher Benjamin Greyhorn, who is the father of value investing, once said. The market is a voting machine, but in the long run, the market is a weighing machine. If you have been observing the market lately, his statement is so so true. Because for the past few months, the market has been behaving like a seesaw, going up and down, up and down, leaving many investors clueless where exactly is the market heading towards too. But if you are a true value investor, you will know that just by buying great businesses and buying them at a good price and willing to hold on to them for a long term, your wealth will appreciate just like how Warren Buffett has accumulated close to $100 billion of net worth. And the question is, is it possible to generate potential passive income while holding on to those great businesses? The answer is yes, through the power of options. In this video, I'm going to share with you exactly how you can do that. I will also be logging into the brokerage platform to show you step by step. Before breaking down the option strategy for you step by step, I want to give a special thanks to Moomoo SG for sponsoring this video. Now let's get started. Firstly, what are options? Options are basically financial contracts that give investors like you and me the right or the obligation to buy or sell the stock within a certain timeframe at a good price. Just like you can buy or sell a stock, you can also buy or sell an option contract. There are two types of options for you to learn. The first one is put option and the second one is call options. And in order for you to potentially generate additional passive income while holding on to your stocks, you need to learn sell call options. When you sell a call option on a certain stock, for example, Tesla, it basically means that you are promising to sell away your 100 shares of Tesla at a certain agreed price. In return of you making this promise, you get to collect some passive income from premium. Now to make it easier for you to see, I'm going to log into the Moomoo SG platform to demonstrate for you step by step. As you can see, I already have more than 100 shares of Tesla inside my account and I actually bought them back in about $235. So right now I'm in about 23% profits because the stock price has risen to close to $289. And given time, I believe that Tesla's stock price will continue to increase because this isn't very strong business. And that is why I do not want to sell away my stocks at the current market price right now. Instead, I only want to sell away my shares at $300 so that I can profit even more. But rather than just waiting for the stock price to go up and do nothing in between, I can go and sell a call option at $300 and promise to sell away my Tesla shares only when a stock price rises above $300. And by doing that, I actually get to collect $320 worth of premium, which is my passive income. And if you want to calculate the return on investment using $320, which is the premium I collected, divide by $23,500, which is the amount of money that I used to buy 100 shares of Tesla back then. My ROI is close to 1.4% in just 8 days. If you translate that into a monthly ROI, that is already more than 5%. If you are wondering what is the strike price to choose from, you can choose plus 5, plus 10, plus 20, it's really up to you. But a basic rule of thumb is, choose the strike price that is already above the current market price and most importantly above your shares' purchase price. Because you only want to promise to sell away your shares at a profit. And for the expiration date, you can choose anything less than a month and for myself, I actually choose about a 1 week option so that I can sell calls and collect premium week after week. But most importantly, I want you to remember this rule by heart. Only sell your call option when you have 100 shares of the underlying stock. Never ever sell any call without any shares because selling naked call is super dangerous. With this important rule in mind, the next question is, what happens after the option's expiration date? In this scenario, if Tesla stays below $300 at the expiration date, well, you can get to keep your 100 shares of Tesla as soon as you're $320 of premium collected upfront. But if the stock price should above $300, for example, to $310, you will still have to keep the promise of selling away your shares at $300, which is the price that you wanted to sell away your stocks in the first place. So you get to profit more as the stock price should to the price that you want to sell anyway. At the same time, collect $320 of passive income in advance, isn't that win-win situation? That's it. You have just learned the power of sell call options and how you can actually use it to take advantage of this volatile market to potentially generate more income while holding onto your shares. There are many powerful option strategies out there, and I can't possibly explain every single one of them in this video. So if you want to start your options investing step by step, then do join us in our upcoming next level options masterclass, where we will be sharing with you 3 powerful option strategies for you to take advantage of in different market conditions. All you need to do is to click on the link around this video and register for your free spot. 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 market, 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. As 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. Lastly if you want to stay up to date with my latest investment insights, then do follow me on my telegram channel because I post investment updates every single day. In fact, I also did up an in-depth video about using sell-book options and how it can help you to potentially generate 2% per month or more if you want to learn more do check out the video right here. Please do note that this video is for educational purposes. The stock share inside is never a buy or sell recommendation. Please make sure you do your due diligence before making any investment decision so that you can become an independent investor. With that, happy investing and I will see you in the next video. Mata ne!