1. This promotion offers a commission rebate to trade Singapore Depository Receipt (“SDR”) with 0 brokerage from 7 August to 25 October 2023.
2. SDR trades must be executed on our suites of the POEMS platform.
3. Customers will be required to pay the prevailing SGX clearing fee, SGX access fee and other related fees, and the associated GST.
4. Eligible Accounts used for trading of SDRs must be Cash Plus, Margin (M), Custodian (C), Prepaid Custodian (CC), Cash Management (KC) and Share Financing (V) Accounts.
5. Each Customer can only claim the rebate once. Customer(s) with multiple Accounts will not qualify for the rebate again.
6. The rebate will be paid to your Trading Account in October 2023.
7. The following persons are not eligible to participate in those promotions unless approved by the management of Phillip Securities Pte Ltd (“PSPL”): a. PSPL institutional Customers and Corporate Customers b. PSPL Account holders whose Accounts have been suspended, canceled or terminated. c. PSPL and its associated entities and subsidiaries (direct or indirect), e.g. Staff, Trading Representatives and Financial Adviser Representatives including their spouse and direct family members.
8. Notwithstanding anything herein contained, PSPL reserves the right at any time in its absolute discretion to (i) amend, add and/or delete any time of these Terms & Conditions without prior notification (including eligibility and qualifying terms and criteria), and all participants shall be bound by such amendments, additions and/or deletions when effected, or (ii) vary, withdraw, or cancel any items or the promotion without having to disclose a reason thereof and without any compensation or payment whatsoever. PSPL’s decision on all matters relating to the promotion shall be final and binding on all participants.
9. In the event of a dispute over the client’s eligibility to participate in this Promotion, PSPL’s decision will be final. PSPL shall not be obliged to give any reason on any matter concerning the Promotion and no correspondence or claims will be entertained.
10. By taking part in this promotion, the customer acknowledges that he/she has read and consented to these Terms & Conditions.

Celebrating National Day with SMART Park!

Deposit within August 2023 for a 30-day Period!

Celebrating National Day with SMART Park!

Deposit within August 2023 for a 30-day Period!

Why SMART Park

• High quality government and corporate bonds

• Commercial bills and fixed deposits

Did you know?

• 5.8% p.a. Guaranteed Return
• S$20 NTUC E-Voucher
• Zero Commissions on US stocks for 1 month (Cash Plus Account Only)

• 5.8% p.a. Guaranteed Return
• S$20 NTUC E-Voucher
• Zero Commission on US stocks for 1 month (Cash Plus Account only)

Frequently Asked Questions

Terms & Conditions

• Via P2 Web:

• Via Phillip MyWealth Mobile App

About Towards 24 Hours US Trading Symposium

Intrigued in using our latest special feature on POEMS platforms in trading the US Market during the Asian Hours but unsure how to make good use of it? 

Now here is your chance! Tune in our Towards 24 hours US Trading Symposium webinar on 5 July 2023, Wednesday,  from 12pm to 2pm on Zoom to understand more about our US Asian Hours trading feature and the strategies to tackle it!

What's even better in store? You will also get to listen to the main key person, Hitoshi Shimoyama, who started this unique feature project in this webinar! 

So what are you waiting for? Register with us now!

SAVE THE DATE

• 5 July 2023, Wednesday
• 12:00pm to 2:00pm
• Zoom Webinar

Programme Outline

12:15pm to 12:30pm

Opening Address & Keynote Speech – POEMS

Luke Lim, Managing Director

As the Managing Director of Phillip Securities Pte Ltd (PSPL), Luke oversees PSPL’s daily operational businesses, strategic directions and executes management decisions for performance-driven results in consultation with the board of directors. He honed his management leadership style having been responsible for various roles in the PhillipCapital Group of companies since 2004. His experience covers research solutions, overall strategy and business development.

12:30pm to 1:30pm

Sharing of Trading ideas using POEMS towards 24 Hours US Trading

1) US Stocks Picks by Paul Chew

• Insights and recommendations for key IT stocks namely Amazon, Salesforce and many others!

2) New Opportunities towards 24 Hours US Trading by Lawrence Lee

• How to make use of trends and news to trade US Asian Hours, ahead of the US opening.

3) Trade with Volatility towards 24 hours US Trading by Hitoshi Shimoyama

• How to seek for opportunities in trading uptrend, sideway, or downtrend markets with QQQ.

4) Trade US American Depositary Receipts (ADRs) in US Asian Hours: All the things you should know by Jason Fu

• Investors can now trade US ADRs such as Alibaba and Baidu round the clock with US Asian Hours from 9am (SG time). How can you “up” the game by making use of the news flow in Asian hours and trade into these US ADRs? The speaker will share on the link between the US ADRs and its domestic market trading activities. 

Our Speakers:

Hitoshi Shimoyama, Executive Director

Hitoshi Shimoyama has more than 40 years of experience in the financial industry. He ran Phillip Securities Japan as the CEO for 11 years and currently serving as the executive director of Phillip Securities Singapore. He is the project manager who started the idea of US Asian Hours, which is the first launch in Singapore, and 24 hours US trading. He graduated from University of Tokyo.

Paul Chew, Head of Phillip Securities Research

Paul has 20 years of experience as a fund manager and sell-side analyst. During his time as fund manager, he has managed multiple funds and mandates including capital guaranteed, dividend income, renewable energy, single country and regionally focused funds.

Lawrence Lee, Head of Corporate Development

Lawrence has more than 13 years of experience in the stockbroking industry with in-depth knowledge of Dealing, Sales and Business Development. He ran the Business for Business Department which service Corporate and institutional customers. He passed his CFA Level 3 Examination in 2016 and graduated from Royal Melbourne Institute of Technology with a Bachelor of Business in Economic and Finance.

Jason Fu, Deputy Head of Global Markets

Jason has more than 17 years of experience in the stockbroking industry with in-depth knowledge in dealing, sales and product development. He previously ran the Global Markets sales team which services retail, high net worth, corporate as well as B4B customers. He also heads the ETF team where they work with global ETF issuers and exchanges to raise the profile of ETFs as an investment product. He graduated from Singapore Institute of Management (SIM) with a Bachelor of Science in Finance.

1:30pm to 2pm

Q&A Session

Interested in the event?

Frequently Asked Questions

You do not need a Zoom account to join the webinar. Please click on the link in the confirmation email and join the session via Zoom Web Client (works best on Chrome) or download Zoom on desktop or mobile before the session starts.

You will receive an email reminders 1 day, and 1 hour prior to the webinar. Do check your email for the link to join.

Yes. The webinar will be recorded and will be uploaded on PhillipCapital YouTube Channel.

We are using the up-vote system where Q&A will start from questions with the highest number of votes. Due to time constraint, similar questions will only be answered once. Also, speakers will only answer questions specific to the presenting market. We will clear off all the questions after each session so as not to confuse the next speaker.

Limited Time Only! From 1 June 2023 - 31 July 2023

How to Qualify for this Promotion?

 Fulfil a minimum of S$10,000 Gross Traded Value for Buy trades in total for any of these 3 selected ETFs:

1. UOBAM PingAn Chinext ETF
   (SGD: CXS, USD: CXU)

2. UOB APAC Green REIT ETF
   (SGD: GRN, USD: GRE)

3. United SSE 50 China ETF
   (JK8)

Ensure that your trades are done from 1 June 2023 to 31 July 2023 with a minimum one month holding period. 

  Fulfil a minimum of S$10,000 Gross Traded Value for Buy trades in total for any of these 3 selected ETFs:

1. UOBAM PingAn Chinext ETF (SGD: CXS, USD: CXU)

2. UOB APAC Green REIT ETF (SGD: GRN, USD: GRE)

3. United SSE 50 China ETF (JK8)

  Ensure that your trades are done from 1 June 2023 to 31 July 2023 with a minimum one month holding period. 

For more information refer to Terms and Conditions below.

• https://www.uobam.com.sg/our-funds/highlights/uobam-ping-an-chinext-etf/index.page
• https://www.uobam.com.sg/sustainability/solutions/uob-apac-green-reit-etf.page#whyinvest
• https://www.uobam.com.sg/china-etf/index.page

What's even better? Achieve the Highest Gross traded value for Buy trade to receive the

Ultimate Grand Prize - S$500 Cash Rebate

T&Cs Apply.

Use this Opportunity to build your ETF Portfolio!

Frequently Asked Questions

Cash Plus, Cash Management, Margin, Prepaid, Custodian, and Share Financing Accounts.

No. Cash Trading Accounts are not eligible for this promotion. You may consider opening an eligible account type or converting your Cash Trading account to a Cash Management Account.

Login to POEMS 2.0 Website > Acct Mgmt > Stocks > Online Forms. Cash Trading Account with existing GIRO facility has to be terminated before we are able to process the conversion of your existing Cash Trading to a Cash Management Account.

No, the consolation prize of S$20 will be awarded to the 50 clients who gather the highest gross traded value for buy trades within 2 months from the start of the campaign period, 1 June 2023.

Customers who do not meet the 1-month holding period will automatically be withdrawn from the campaign.

Yes, the minimum S$10,000 gross traded value for buy trades can be combined across any of the 3 selected ETFs.

In this instance, it will be S$3000 + S$8000. Assuming that you fulfil the minimum holding period, you will be qualified for the campaign. Consolation prize of S$20 cash rebate will be awarded to the 50 clients who gather the highest gross traded value for buy trades (excluding the top 3 highest), within 2 months from the start of the campaign, 1 June 2023.

The winners for the 1st, 2nd, or 3rd prize will be selected based on the highest gross traded value for buy trades across the eligible pool of customers respectively.

The rebates will be disbursed to the Customers’ eligible Accounts by end of September 2023.

Terms and Conditions

1. This promotion period is valid from 1 June 2023 to 31 July 2023, both dates inclusive.
2. Qualifying account types for this promotion:
   • Cash Plus
   • Cash Management
   • Margin
   • Prepaid
   • Custodian
   • Share Financing
3. Qualifying criteria to be eligible for the Cash Rebate Prizes:
   • Customers will need to execute online Buy trades traded through POEMS Trading Platforms (POEMS 2.0, POEMS Mobile 2.0, POEMS Mobile 3, and POEMS Pro) for the three selected ETFs listed below:
     • UOB AM PingAn Chinext ETF,  (SGD: CXS, USD: CXU)
     • UOB AM APAC Green REIT ETF (SGD: GRN, USD: GRE) or
     • United SSE 50 China ETF (JK8)
   • Eligible types of Buy trades:
     • SRS
     • Cash
   • Customers will need to fulfill the minimum gross traded value for buy trades of S$10,000 within two months from the start of the promotion (promotion period: 1 June 2023 to 31 July 2023) with a minimum of 1-month holding period.  
   • The minimum S$10,000 gross traded value for buy trades per Customer can be combined across the selected three ETFs.
4. The Cash Rebates Prizes will be given to the top 53 Customers (top 3 and 50) with the highest gross traded value for buy trades within 2 months from the start of the promotion, 1 June 2023, and will be awarded accordingly to their gross traded value for buy trades:
   1. 1st Prize: S$500 Cash Rebate
   2. 2nd Prize: S$300 Cash Rebate
   3. 3rd Prize: S$200 Cash Rebate
   4. Consolation Prize (50 winners): S$20 Cash Rebate
5. Each Customer is only eligible to receive one-time cash rebate throughout the whole campaign.
6. Notification of the Prizes:
   • The winners will be announced through email notification in September 2023.
   • The Cash Rebate will only be credited to the eligible Customers’ POEMS Accounts after the one month holding period.
7. In the event of a dispute over the Customer’s eligibility to participate in this promotion, PSPL’s decision is final.
8. Notwithstanding anything herein contained, PSPL reserves the right at any time in its absolute discretion to amend, add and/or delete these Terms and Conditions without prior notification (including eligibility; replacement of the reward; promotional mechanics, promotion duration without prior notification, qualifying terms and criteria), and all participants shall be bound by such amendments, additions and / or deletions when effected, or vary, withdraw, or cancel any items or the promotion without having to disclose a reason thereof and without any compensation or payment whatsoever. PSPL’s decision on all matters relating to the promotion shall be final and binding on all participants.
9. The following persons are not eligible to participate in those promotions unless approved by the management of Phillip Securities Pte Ltd (“PSPL”):
   • Cash Trading Account holders
   • PSPL institutional Customers and corporate Customers.
   • PSPL Account holders whose Accounts have been suspended, canceled or terminate
   • All employees of PSPL and its associated entities; PSPL and all its subsidiaries.
   • Joint Account holders.
10. By taking part in this campaign, the participant acknowledges that he / she has read and consented to these Terms & Conditions.
11. This advertisement has not been reviewed by the Monetary Authority of Singapore. 

LIMITED TIME ONLY

Optimise your ETF Portfolio to receive more!

Use your POEMS Reward Points to donate for a better cause with Community Chest 

What is a Community Chest Donation Voucher?

Community Chest Donation Voucher

The Change for Charity programme by Community Chest, the philanthropy and engagement arm of the National Council of Social Service, invites everyone to seamlessly weave giving into their daily routines. Community Chest has partnered with forward-thinking businesses to integrate giving into your everyday transactions.

All donations raised goes towards supporting over 50 critical programmes across 2 causes:

For more information about Change for Charity, visit www.comchest.gov.sg/changeforcharity.

Where appropriate, Community Chest may share necessary data with other Government agencies, so as to improve the discharge of public functions, and to serve you in the most efficient and effective way unless such sharing is prohibited by law. Please write to ncss_comchest@ncss.gov.sg for any queries.

How to Donate?

1. Login to POEMS 2.0 Web > Head to Markets & Data Rewards tab.


2. Navigate to the S$50 ComChest Donation Voucher under the  “Voucher” section.


3. Tick the checkbox to redeem S$50 ComChest Donation Voucher using your 2,500 POEMS Reward Points respectively, and click the “Submit” button.

S$50 ComChest Donation Voucher can be redeemed with 2,500 POEMS Reward Points

Frequently Asked Questions

This can happen for one of two reasons:

• • Each Customer may only redeem 1 x S$50 Community Chest Donation per month. You may have hit the maximum redemption value for the month.
  • You have insufficient POEMS Reward Points for redemption.

The confirmation email will be sent to the email address registered to your POEMS Account within 5 working days from the date of redemption. If you have yet to receive the voucher after 5 working days, kindly check your junk or spam folder.

IMPORTANT: Please ensure that the email address registered to your POEMS Account is accurate.

Yes, the donation voucher is tax deductible. Please note that you can enjoy a tax deduction on the total amount you have redeemed for donation, not the matching amount by the government or PSPL. 

No action is required. NCSS will submit your personal information and donation amount to IRAS at the following tax assessment year on your behalf.

Your donation amount will be reflected in your following years’ tax statement. Should there be any dispute about the donation amount, please contact NCSS at ncss_comchest@ncss.gov.sg for clarification. Please keep the donation voucher redemption email confirmation for record purpose.

Terms and Conditions

1. This donation campaign is valid from 1 April 2025 to 31 March 2026.
2. Each Customer holding a Cash Plus, Cash Management, Cash Trading, Margin, Prepaid, Custodian or Share Financing Account may redeem S$50 worth of Community Chest Donation voucher per month.
3. The voucher, once redeemed, will be donated to the Community Chest Fund new initiative – Change for Charity Fund.
4. The voucher is not refundable or exchangeable for cash.
5. The voucher redemption confirmation will be sent to the Customer’s registered email address (registered to the Customer’s POEMS Account) within 5 working days from the date of redemption.
6. Phillip Securities Pte Ltd (PSPL) reserves the right to change the terms and conditions at any point of time.
7. In case of dispute, the decision of PSPL shall be final.
8. PSPL, its affiliates and their respective employees and agents shall not be liable to any person for any loss, damage, injury, costs or expenses incurred, suffered, borne or arising from this promotion.
9. By redeeming this item, you agree to share your personal information (Name, ID, email address) with our third-party community service provider, National Council of Social Service, for the purpose of submitting your donation for tax deduction and conducting surveys or promoting initiatives to you.
10. Where appropriate, Community Chest may share necessary data with other Government agencies, so as to improve the discharge of public functions, and to serve you in the most efficient and effective way unless such sharing is prohibited by law. Please refer to www.comchest.gov.sg/privacy for further details and write to ncss_comchest@ncss.gov.sg for any queries.
11. By redeeming this item, you acknowledge that you have read and consented to these Terms and Conditions.

Options Trading

• Why Trade Options
• Basics
• Strategy
• Brokerage
• Trading Details
• How to Trade
• Corporate Actions
• FAQ

Why Trade Options

Generating Income Regardless of Whether the
Markets Are Bullish or Bearish

Bullish on a particular stock? Buy a call option and earn when the stock prices grow.

What about when you feel bearish on a particular stock? Buy a put option and earn when stock prices fall.

Diversify Your Portfolio with Options

We are all too familiar with the ‘don’t put all your eggs in one basket’ term. With options, you have access to more sectors and a more diverse spread and exposure for a smaller amount of capital, even within your preferred sector.

In addition, diversifying your exposure will also assist in hedging against losses mentioned in the above stated scenarios.

Position Hedging to Minimise Potential Downside Risk and Limit Potential Losses on Other Open Positions

For example, if you own some stocks in your POEMS Account and are concerned about the fluctuation in pricing of this particular stock, or if the markets will turn bearish, you can consider using options to hedge.

In this scenario, buying a put option, with the strike price near the stock entry price covers some losses(or stock current trading price to protect the gains), while risking the cost of buying the put option only.

Limited Risk

When you buy options, you limit your risk to just the premium that you pay, which is a fraction of the cost of the underlying stock. Furthermore, it also helps to reduce the cost of holding a stock by allowing you to sell higher call options to earn premium.

What is an Option?

When you buy options, you limit your risk to just the premium that you pay, which is a fraction of the cost of the underlying stock. Furthermore, it also helps to reduce the cost of holding a stock by allowing you to sell higher call options to earn premium.

The buyer of the option has the right but not the obligation to buy or sell the underlying asset within the specified time.

The seller of an option does not have such rights and can only assume the obligation as stipulated in the contract.

An Example

When purchasing a new car, you would have to purchase precautionary insurance plans before driving in it.

When you purchase an insurance policy — be it an automobile, health, life or homeowner’s insurance — you will need to pay a premium for the protection it provides.
This mimics that of an option buyer.

However, just like what we experience in life, we end up not putting the insurance to use, resulting in the profiting of the Insurance firm,
This mimics that of an Option Seller

Basic Options Strategies

1. The stock falls below the strike price of the call and the call option expire worthless.
2. The stock trade above the strike price and either
   1. exercise the option and buy the stock at the strike price and profit from the higher current market
   2. close out the long call position in a profit.

Long Call Trade Example

Long Call Stock Chart and Payoff Diagram

• Deep OTM Call
  • The option will be cheap as it is deeply OTM. The investor may employ this low cost strategy to profit when the option moves ITM.
  • The risk that the option will expire worthless is great but therein lies the potential for a large return.
• Deep ITM Call
  • This is an alternative to buying the shares outright while profiting from the same underlying stock price movement.
  • A Call that is deep ITM has delta value that is close to 1, which means it will mimic the price movement of the underlying closely i.e. if the price of the underlying moves by $1, this will result in a very similar price movement in the option value as well.
  • The investor may employ this strategy to benefit from the leveraging nature of options, you may also see LEAPS below.

1. The stock trades above the strike price of the put and the put option expire worthless.
2. The stock fall below the strike price and
   1. exercise the option and sell the stock at the strike price and profit from the lower current market
   2. close out the long put position in a profit.

Long Put Trade Example

Long Put Stock Chart and Payoff Diagram

A long put can be combined with a stock purchased previously to form a Protective Put.
This is a form of insurance against a decline in stock price which may result from events such as poor Earning Release or short-term bearish sentiment on the stock.

Protective Put Trade Example

Trade: Apple (AAPL), 19 March, $130 Long Put (AAPL US 03/19/21) bought and combined with the underlying stock holding of 100 shares of AAPL trading at $130. Near-term volatility or bearish sentiment may cause AAPL stock price to decline below $130 and cause a loss in the investment of the AAPL stock.

This decline however, will result in the AAPL Long Put to be more valuable and ITM hence offsetting the loss. Investors may close out the long put position in profit or “put” 100 shares of AAPL to the obligated seller at the exercise price of $130.

A covered call strategy involves selling an option to collect premium as income. For this strategy you will need to have the underlying stock before executing the strategy. Selling a call obligates you to sell 100 shares of a stock, which would be a bad idea if you don’t already own the stock. After all, you’d have to go out and buy 100 shares on the open market and then sell them back to the option buyer. But if you already own shares of the underlying stock, you wouldn’t have to buy shares to sell to the call buyer.

The shares you already own would “cover” the call you sold, hence the term “covered call.” Covered calls are ideal for generating income on stocks you already own. Rather than letting the stocks sit idle in your equity account, it can be used to generate extra income by doing covered calls on top of also profiting from the increase in price of the underlying stocks.

Stocks with high volatility (such as Tesla, Alibaba,) are great with generating more income due to the volatility priced into the option premium. This strategy can be utilise to generate constant income by rolling forward on the covered call contracts (ie. Extending the expiry date). Do take note if the covered calls expired ITM, the underlying needs to be delivered at the exercise price.

There are two potential outcomes when selling a call option:

1. The stock rises past the strike price and the call seller is obligated to sell 100 shares of the stock for the strike price.
2. The stock does not rise past the strike price and the call expires worthless, allowing the seller to keep the entire premium. Most of the time, we will buy back a call write that is out of the money and has lost most of its value.

Covered Call Trade Example

(1)The trade was the Microsoft (MSFT) January 18th $100 Covered Call while your average cost for MSFT stock is at $98. You earned ($2.90×100 shares) when we sold the covered call and, at expiration, the call expire worthless if MSFT trade below $100.

Below are the details of the trade broken down step-by-step. The trade was a covered call trade in Microsoft with an expiration date of Jan. 18, 2019. We expected the stock stay below $100 through expiration.

(2) The trade was the Microsoft (MSFT) January 18th $100 Call Write while your average cost for MSFT stock is at $98. You earned ($2.90×100 shares) when you sold the covered call and, at expiration, the option was in the money.
The buyer call the stock from us on Jan. 18, 2019, but we still got to keep the $290 in premium we received for selling the option.

Below are the details of the trade broken down step-by-step.

Covered Call Payoff Diagram

Straddle

A long straddle strategy involves both a Long Put and Call on the same underlying same strike price with the same expiration date.

The primary motivation behind this strategy is to profit from drastic movement (in either direction) of the stock price. This can take place during Earnings Announcements, where results might be unpredictable, potentially resulting in a huge impact on the stock price, causing it to deviate greatly.

Straddle Trade Example

Trade: Tesla (TSLA), 28 April, Long Call (TSLA US 04/28/23 C200) and Long Put (TSLA US 04/21/23 P200) bought with the underlying stock price of TSLA trading at around $200. On 27 April, TSLA announced a better (or worse) than expected Earnings results, causing TSLA stock price to move drastically.

This movement caused the Long Call (or Put) to be deep ITM, the position can be closed out in profit. Due to the drastic changes in price, the position that was deep ITM will cover for the initial investment in both Long Call and Put.

*Do note that volatility spikes that take place prior to earnings announcements will mean that the cost of options are usually more expensive and the resultant volatility post-announcement may result in a loss even though the options position moved ITM.

Straddle Payoff Diagram

Straddle Variants

There are multiple variants to the Straddle Strategy:

Strangle

Buy both Long Call and Long Put, with the strike price of the Call HIGHER than that of the Put. This will result in a lower premium paid (OTM options are cheaper than ATM/ITM options). The drawback to this would be that the price movement would have to be even more drastic for the position to be profitable.

Strip

Buy both a Long Call and Long Put with the quantity of the Put HIGHER than that of the Call (e.g. Long 1 Call and 2 Puts). This strategy relies on drastic stock price movement(s), biased towards a decrease in stock price.

Strap

Buy both a Long Call and Long Put with the quantity of the Put LOWER than that of the Call (e.g. Long 2 Calls and 1 Put). This strategy relies on drastic stock price movement(s), biased towards an increase in stock price.

LEAPS – Long-term Equity Anticipation Securities

An Example of LEAPS

Cash Secured Put

A cash-secured put strategy involves selling a put option to collect premium as income while ensuring you have enough cash on hand to buy the underlying stock if assigned. For this strategy, you will need to set aside sufficient capital to purchase 100 shares of the stock at the strike price before executing the trade. Selling a put obligates you to buy 100 shares of the stock if the option is exercised. If you don’t have the necessary funds, you might face liquidity issues or be forced to close the position at a loss.

Cash-secured puts are ideal for investors looking to generate income while potentially acquiring stocks at a discount. If the stock price remains above the strike price by expiration, you keep the premium without having to buy the shares. If the stock drops below the strike price and you are assigned, you purchase the shares at the agreed-upon price, often at a lower effective cost due to the premium received. There are two potential outcomes when selling a put option:
1. The stock falls below the strike price, and the put seller is obligated to buy 100 shares of the stock at the strike price, regardless of its lower market value.
2. The stock stays above the strike price, and the put expires worthless, allowing the seller to keep the entire premium.
Most of the time, traders will buy back a put option that is out of the money and has lost most of its value to lock in profits and free up capital for new trades.

Cash-Secured Put Trade Example

Scenario 1: Put Expires Worthless

The trade was the Microsoft (MSFT) January 18th $100 Cash-Secured Put while you were willing to buy MSFT stock at $100. You earned ($2.90 × 100 shares = $290) when you sold the put option. At expiration, if MSFT trades above $100, the put expires worthless, and you keep the entire premium without having to buy the stock.

Below are the details of the trade broken down step-by-step. The trade was a cash-secured put in Microsoft with an expiration date of Jan. 18, 2019. We expected the stock to stay above $100 through expiration.

Scenario 2: Assigned the Stock

The trade was the Microsoft (MSFT) January 18th $100 Cash-Secured Put while you were willing to buy MSFT stock at $100. You earned ($2.90 × 100 shares = $290) when you sold the put option. At expiration, the option was in the money, meaning MSFT traded below $100, and the put buyer assigned the stock to us at $100 per share. However, we still kept the $290 in premium received for selling the option, effectively lowering our cost basis on the purchased shares.

Below are the details of the trade broken down step-by-step.

Brokerage

Commission and Brokerage Charges

Note: Goods & Services Tax (GST) will be applied to commission charges and pass through fees. Commission and exchange fees may be subject to change without prior notice.

Trading Details

Minimum trade size: 1 contract which generally covers 100 underlying shares

For positions that are unable to meet the obligation of the Option contracts (including auto-exercise) with the exposure risk deemed as excessive, one of the below scenarios will happen. Any proceeds will be credited/debited to the client prior to the expiry of the Option.

⦁ Liquidate Options prior to expiration date
⦁ Allow the Options to lapse
⦁ Allow delivery and liquidate the underlying shares

PSPL does not allow exercising of Options. All open positions should roll forward prior to the expiry of the contract else it will be subjected to one of the above stated handling. Force liquidations related to expiration typically commence two hours before the market close, although we reserve the right to initiate this process earlier or later based on prevailing conditions.
The US Stock Option tab will only reflect positions and balance relating to US Stock Option(s). All trades are denominated in USD.

Order details

Trading Hours

*Order placement are allowed only during regular trading hours. Orders submitted outside of regular trading hours will be rejected, these includes orders in ETFs that trades an additional 15 minutes after regular close.

Settlement

1. Should the due date coincide with Singapore public holiday/s – The due date will follow the traded market’s due date

Transfer Timeline

US Options Live Prices

US Options Live Price feed is available for subscription FOR FREE on the web portal if you are a non-professional investor. Each subscription will go on for 12 months, and is not auto-renewed. After a 12-month subscription period, your US Options Live Price Feed will expire. Users will have to re-subscribe if they want to continue enjoying the US Options Live Price Feed for the next 12 months (at no additional cost).

For professional investors, you can subscribe to our US Options Live Price feed at SGD $45 monthly.

Please note: if you do not subscribe to the Live Price Feed, Option prices displayed are delayed by 15-30 minutes.

Only Option prices are live. In order to have accurate IV/Delta/Gamma, investors are advised to subscribe to both US Equities and Options live prices.

Options Price Increments

There may be instances where your Option order has invalid price increments.

Below is a summary of how Option price increments are determined.

In general, most Options trade in either nickel or dime increments depending on the price of the option.

However, there are some options that trade in increments of a penny or a nickel depending on the price of the option.

The Options Clearing Corporation (OCC) maintains a list of equity options that are part of the Penny Program.

The list can be downloaded from the OCC website here.

How to start?

How to activate stock options account (POEMS MOBILE 3 )

Video Guide

Screenshot Guide

Step 1:

Navigate to (1)Trade > (2)Options and click on (3)Open Account

VYou can also navigate to (1)Me > (2)Option Activation to open Stock Option account

Step 2(inactive CAR/W8Ben/RWS):

Validation page for CAR/W8Ben/RWS. Click (1)Proceed to being filling up the respective forms

On click of respective forms, you will be redirected to fill up the forms.

*Do note CAR form can only be completed online on POEMS Web.

You may also submit W8Ben and Risk Warning Statement(RWS) under (1)Me > (2)Forms

Step 3(active CAR/W8Ben/RWS):

Redirect to acknowledge Option’s Risk Declaration Statement under ‘Option Activation’

How to activate stock options account (POEMS WEB)

Screenshot Guide

Step 1: Acct Mgmt > Options > Online Forms > Options Activation (RDS)

Step 2: Upon clicking Options Activation (RDS) you will be prompt to acknowledge the risk disclosure for Options

How do I place a trade? (POEMS MOBILE 3)

Video Guide

Screenshot Guide

Step 1:

To place a trade, navigate to (1)Trade > (2)Option > (3)Trade

In the search bar, (1)search for the underlying counter > (2)Select the specific counter under EQ – Equity or ETF – Exchange Traded Funds respectively

Select (1)Option and under the option page, you may choose for the (2)Options types ie. Call or Put to displayed separately or All to be displayed together. (3)Select the expiry date and the (4)Strike price respectively

(1)Show the option symbol and click on (2)Trade

Select (1)Buy or Sell > (2)Input the limit price and quantity respectively > (3)Key in password > (4)Click on place order to submit order

Order confirmation shown here, (1)Click on confirm to submit order

(1)Submitted order will be reflected under today’s order

How do I place a trade? (POEMS WEB)

Screenshot Guide

Step 1: Prices > Options > Select stock to launch Option Chain > Select contract to launch Trade Ticket > Fill in order details > Submit order

Step 2: Review order details and submit order

Corporate Actions

Special Cash Dividend

When a special cash dividend is issued, there are normally two scenarios.

Scenario A

The strike price of the options contract decreases accordingly.

The memo from OCC on MOV.US is explaining the following:

1.  Options opened before 4 April 2023 will be adjusted

2. Multipliers remain unchanged

3. Strike price will all be reduced by $1.00

4. Option symbol remains unchanged

5. Deliverable remains unchanged

Scenario B

Strike price will remain unchanged with a change in option symbol and an additional deliverable of the cash distribution.

The memo from OCC on VHC.US is explaining the following:

1. Options opened before 18 April 2023 will be adjusted

2. Multipliers remain unchanged

3. Strike price will remain unchanged

4. Option symbol change from VHC to VHC1

5. Contract deliverable per contract will consist of:

        a. 100 VHC.US common shares

        b. $100 cash per contract.

Liquidation

When the underlying stock liquidates and ceases trading in the market, the shares that make up the contract will turn into the cash-per-share amount the company allocates. Thus, the contract will be valued 100 times more than the company’s chosen pay out for each share.
Both the Symbol and Strike price will not change, but the Options Clearing Corporation (OCC) will bring forward the expiration date for the contract.

The memo from OCC on OTIC.US is explaining the following:
1.  Option symbol will remain unchanged
2. Contract deliverable per contract will be $11.00 ($0.11 x 100) plus any future liquidating distributions.
3. There will be a delay in settlement from 11 April 2023
4. The expiry date of the option will be brought forward

Acquisition

When the underlying stock gets acquired and ceases trading in the market, the expiration will be accelerated with the shares that make up the contract, turning into the cash-per-share amount that the company allocates.

The memo from OCC on AMYT.US is explaining the following:
1.  Contract deliverable per contract will be $1,450.00 ($14.50 x 100) less fees
2. Settlement will be delayed until the final net cash merger consideration is confirmed
3. The expiry date of the option will be brought forward

Cash and Stock Merger

In the event of a cash and stock merger, please note that the ticker of the options contract will change. The number of shares in the contract will also vary based on the merger conditions and deliverables that may include shares along with cash. Both the Strike price and Expiration date will however remain the same.


The memo from OCC on STAR.US is explaining the following:
1.  Option symbol will change to SAFE2
2. Contract deliverable per contract will be:
    a. 15 STHO.US common shares
    b. Cash in lieu of 0.3 fractional STHO.US common shares
    c. 16 SAFE.US common shares 

Ticker Change

During a ticker change, the Options contract will change to reflect the new ticker of the underlying stock. Both the Strike price and Expiration date will however, remain unchanged.


The memo from OCC on ATY.US is explaining the following:
1.  Option symbol will change to ILLM
2. Contract deliverable per contract will be 100 ILLM.US shares
3. Strike price and other options terms will remain.

Reverse Split

During a reverse split, there will be a number that is added to the ticker of the Options contract. The number of shares in the contract will decrease based on the conditions of the reverse split. Both the Strike price and Expiration date will however, remain unchanged.

The memo from OCC on MEIP.US is explaining the following:
1.  Options opened before 17 April 2023 will be adjusted
2. Option symbol will change to MEIP1
3. Contract deliverable per contract will be 5 (new) MEIP.US shares

Forward Split

Forward splits are the division of the outstanding shares of a company into a larger number of shares. When a forward split occurs, there are normally two types of possible scenarios:
Scenario A
When the forward split results in a round number. (e.g. 2 for 1, 5 for 1, 10 for 1)
⦁ The ticker and expiration date will remain the same if you have Options on a stock that undergoes a forward split. The Strike price however, will be divided by the forward split multiplier.

The memo from OCC on CPRT.US is explaining the following:
1.  Options opened before 4 Nov 2022 will be adjusted
2. Holders of the contract before 4 Nov 2022 will hold double the number of option contract
3. Strike price will be divided by 2. E.g. the old options contract with a strike price of $55 is adjusted to $27.50 ($55/2)
4. Contract deliverable per contract will still be 100 CPRT.US shares

Scenario B

When the forward split does not result in a round number (5 for 4, or 3 for 2):
⦁ There is a change in symbol
⦁ Number of contracts remain the same but the deliverable of the contracts increase according to the forward split multiplier
⦁ Strike price decreases by the strike divisor

The memo from OCC on PCAR.US is explaining the following:
1.  Options opened before 8 Feb 2023 will be adjusted
2. The option symbol is changed to PCAR1
3. Holders of the contract before 8 Feb 2022 will hold same number of option contract
4. Strike price will be divided by 1.5. E.g. the old options contract with a strike price of $37.2 is adjusted to $24.80 ($37.2/1.5)
5. Contract deliverable per contract will increase to 150 PCAR.US shares

Stock Dividend

When the firm pays a stock dividend, the Option’s strike price will lower and the number of deliverable shares in the contract will increase by the amount of the dividend. There will be a number that is added to the ticker of the Options contract if the firm of the underlying stock is issued a stock dividend. 

The memo from OCC on TR.US is explaining the following:
1.  Options opened before 3 Mar 2023 will be adjusted
2..The option symbol is changed to TR1
3. Strike price will be divided by 1.03. E.g. the old options contract with a strike price of $17.50 is adjusted to $16.99 ($17.50/1.03)
4. Contract deliverable per contract will increase to 103 TR.US shares

Spinoff

When the firm of the underlying stock executes a spinoff, the number of shares in the contract will remain the same. In addition to the existing shares, the new shares paid out by the issuing firm will be included in your contract. During a spinoff, there will be a number that is added to the ticker of the options contract. 

The memo from OCC on T.US is explaining the following:
1.  Options opened before 11 Apr 2022 will be adjusted
2. The option symbol is changed to T1 and 2T1
3. Strike price remain unchanged
4. Number of contracts remain unchanged
5. Contract deliverable per contract will consist of;
    a. 100 T.US shares
    b. 24 WBD.US shares
    c. Cash in lieu

Frequently Asked Questions

Options 101

How can I check for Options Corporate Actions?

You can check for options corporate actions by visiting the Options Clearing Corporation (OCC) website. In the memo section, search for the specific stock to find the latest updates on corporate actions and the corresponding deliverables per contract.

How are options classified?

Options are broadly classified into ‘Call’ and ‘Put’

Call: Is a contract that allows the option buyer (after paying an option premium) to have the right but not the obligation to buy the underlying asset (typically 100 shares) at the strike price within a specified time. The seller of the option (after receiving an option premium) is obligated to sell the underlying asset to the buyer at the exercise price if the buyer exercises his right.

Put: Is a contract that allows the option buyer (after paying an option premium) to have the right but not the obligation to sell the underlying asset (typically 100 shares) at the strike price within a specified time. The seller of the option (after receiving an option premium) is obligated to buy the underlying asset from the buyer at the exercise price if the buyer exercises his right.

How do I make sense of an option symbol?

AAPL211903P00120000

or

AAPL US 03/19/21 P120

• AAPL US: the symbol of the underlying asset (Ordinary APPLE shares)
• 03: month of expiration
• 19: day of expiration
• 21: year of expiration
• P:Put (C if it is Call)
• 120: strike price of the contract

What are the moneyness of options?

ITM: In-the-money options are those options that have intrinsic value if exercise

• Calls with strikes below where the underlying is currently trading
  • eg. Call strike: 100, Current underlying price: 120 (Call < Underlying)
• Puts with strikes above where the underlying is currently trading
  • eg. Put strike: 100, Current underlying price: 80 (Put > Underlying)

ATM: At-the-money options are those options that have a strike price closest to where the underlying asset is currently trading at

• Call/Put with strikes roughly the same where the underlying asset is currently trading at

OTM: Out-of-money options are those options that have no intrinsic value if exercise

• Calls with strikes above where the underlying is currently trading at
  • eg. Call strike: 120, Current underlying price: 100 (Call > Underlying)
• Puts with strikes below where the underlying is currently trading at
  • eg. Put strike: 80, Current underlying price: 100 (Put < Underlying)

What are the Greeks in option trading?

Delta: measure the change in the price of an option with a $1 change in the price of the stock. Delta for call range between 0 to 1 while for put range between 0 to -1.

• E.g. Delta of 0.5 means if the underlying stock increase in price by $1, the option price will rise by $0.5.

Gamma: reflects the rate of change in the delta in response to a $1 change of the underlying stock price.

• E.g. Gamma of 0.1 means if the underlying stock price increasse by $1, the option delta will increase by a corresponding 10%.

Vega: measure the price sensitivity of an option to changes in the volatility of the underlying stock.

• E.g. Vega of 0.2 means if the implied volatility of the option increase by 1%, the option price will increase by a corresponding $0.2.

Theta: also known as time value of option measure the rate of decline in the value of an option due to the passage of time.

• E.g. Theta of 0.9 means the option price will decrease by $0.9 per day till expiration.

Rho: measure the rate at which the price of an option changes relative to a change in the risk-free rate of interest i.e. U.S Treasury bill’s risk-free rate.

• E.g. Rho of 0.2 means the option price will increase by 0.2 for 1% increase in the risk-free rate.

Greeks are dynamic and will change throughout up till expiration of the option.

What are the risks involved in trading options?

The risks from buying Options (if you decide not to sell them before expiration) are that they will expire worthless, assuming they are out-of-the-money. On expiry, if the Option is ITM by 0.01 or more, it will be auto-exercised by the OCC. Post auto-exercise, the underlying stock price may have drastic price movement(s) during the extended hours trading hours, which in normal circumstances warrant the position to be OTM. As such, for positions that are delivered/taken, delivery may experience a loss instead (even if the auto-exercise was ITM).

Aside from buying Options, many investors get excited about selling Options because they get paid upfront for their trades.

Investors that sell short puts and covered calls are taking on specific risks. In the case of a cash secured put write, you risk being put stock, which we have mentioned above. Let’s look at the Microsoft (MSFT) 21 December 2022 US$110 Put Write, which expired in-the-money, again.

If we sold one contract, we would be required to purchase 100 shares for US$110 per share at expiration, costing US$11,000. Every put write carries the risk of exercise. However, this is unlikely to happen, hence selling too many options that expire in the money can be costly.

In the case of a covered call strategy, the risk lies with the possibility of the buyer calling your stock away.

Assuming you bought 100 shares of Microsoft for US$110 per share, your invested capital is US$11,000. You decided to engage in a covered call strategy. If your covered call expires in-the-money, you would have been required to sell your 100 shares for US$100. The buyer would have paid US$10,000, resulting in loss in money on our trade although the premium from the selling of the call option will still belong to you.

When selling covered calls, you risk losing money from your stock position at times.

What happens after I've entered into an options position?

Exiting of an Option position

There are two ways to close out an open option:
⦁ Let the option lapse (for options that are not ITM of US$0.01 or more which are subjected to auto-exercise by the OCC)
⦁ Enter into an opposing option to net off the position
Example:
⦁ Short a call with the same underlying asset and expiration date to exit an open position in a long call
⦁ Long a put with the same underlying asset and expiration date to exit an open position in a short put

Assignment

The Options Clearing Corporation (OCC) randomly assigns the exercise notices it receives to the open interests of its clearing members as part of their processing sequence. The clearing member then randomly assigns these exercise notices (via an automated assignment algorithm) to those short positions of that particular notice. Seller of Options have no control over the assignment and will have to fulfil the obligation as per the Option contract.

Auto-exercise

Positions expiring in the current month that are ITM as per below threshold, will be subjected to auto-exercise by the OCC without the need for any explicit instructions. Auto-exercise happen only on option expiration only. Intention to avoid the auto-exercise by the OCC for the Options held must have the position closed off prior to expiry.
⦁ Stock Options that are $0.01 or more ITM
Stock prices may experience huge price movement(s) during extended trading hours which may warrant the Option auto-exercised to be OTM in normal circumstances.

(PSPL will close off any ITM option positions prior to auto-exercise – refer to ‘Trading Details for more info)

Corporate action

Any change to an Option caused by a corporate action will be handled by the OCC and will be published on the company’s website. All affected Options will be automatically adjusted based on the notification from OCC.

Stock Options Account Matters

Are there any forms required prior to trading Options?

• Active W8Ben
• Acknowledged Risk Warning Statement (RWS)
• Passed Customer Account Review (CAR)
• Acknowledged Option Risk Disclosure Statement (Option RDS)

What are the eligible account types to trade Options?

The eligible account types are Cash Management (KC), Margin/Cash Plus (M), Prepaid (CC), and Custodian (CU) accounts.

Additionally, the trading account should also be opted in for e-statement.

How long is the approval process for Option Activation?

If acknowledgement of Options RDS is done before 6.15pm SGT, the option sub-account will be activated the next business day (T+1) by 4.00pm SGT, otherwise it will take up to 2 business days (T+2), excluding any SG/US holidays.

How do I read the Option Portfolio balance?

·         Portfolio Value: Total portfolio valuation which is the aggregate of all positions(Equities and Options) and cash balance. 

·         Buying Power: Amount available for trading. It is calculated as SOD Cash Balance +(Sell added upon fill) OR -(Buy to open deducted upon order placement) premiums for option trades.

·       Intraday P/L: P/L for all option positions. It is calculated based on the mid price of bid & ask quotes with previous close as reference price.

·        Trade Flow: Intraday total cash flow from option trades. It is calculated as negative for buy trades and positive for sell trades.

·         Avail Balance : Amount available for trading. It is calculated as SOD Cash Balance +(Sell added upon fill) OR -(Buy deducted upon order placement) premiums for option trades.

·         Maintain Margin: Margin requirement for option positions.

·        Intraday P/L: P/L for all option positions. It is calculated based on the mid price of bid and ask quotes with previous close as reference price.

·         Stock Value: Market value of stock positions

Example to calculate Portfolio Value

Available Balance = Buying Power = Cash available for trading = 6,528.72
Maintenance Margin = Cash earmarked for cash secured puts position = 3,800
Stock Value = 2,198
Options Value (Market Value) = (-15) + (-30) + (-76) + 6,110 = 5,989
Portfolio Value = Available Balance/Buying Power + Maintenance Margin + Stock Value + Options Value
18,515.72 = 6,528.72 + 3,800 + 2,198 + 5,989

Why are Exercise/Assignment activities not shown on the same day of the e-statements?

As exercise/assignment activities are processed after the market has closed, it will only be shown on the e-statements on T+2.
Do note however, portfolio balances and positions are updated accordingly prior to market open on T+1.

What are some of the common reasons for order rejection?

• Account does not have enough position: The order quantity must be equal to or less than your current position as the account does not have sufficient holdings. No splitting of orders.
• Account does not have enough balance: The Buy open gross amount should be equal or less than the available balance.
• Insufficient Stock position to cover: Sell to Open positions will be rejected if not covered by the underlying stock i.e. Covered Call.
• Short Put Option is not allowed.

How do I transfer funds into my Options Account? (Video Guide)

How do I transfer funds into my Options Account?

How do I transfer stocks into my Options Account? (Video Guide)

How do I transfer stocks into my Options Account?

Transfers can be done via the POEMS Mobile 3 App and there will be no applicable changes for transfers between these accounts. 
For detailed steps, please refer to the image below: 

Why is there a need to transfer funds/stocks prior to trading options?

Option ledger is kept separately from the main Poems equity account ledger, as such option sub-account will only have activities related to options only. Any liquidation of shares in the option sub-account will need to be transferred back to the main Poems equity account.

Others

Does POEMS support option strategies?

POEMS currently does not support the combination of option strategies i.e. Spreads.
All strategies have to be executed separately.

What are the supported platforms?

Options trading will only be supported on the POEMS Mobile 3 App and POEMS web.

It is not available on POEMS Mobile 2 and POEMS Pro.

Is there US Extended Trading for options?

US Extended Trading is only available for Equities trading.

The trading hours for Options are from 9.30pm to 4.00am (SGT) during daylight savings and 10.30pm to 5.00am (SGT) during non-daylight savings.

What are the tradable counters available for options?

Constituents of S&P 500, S&P ADR, Nasdaq 100, Russell 3000 and popular traded ETF options such as SPY, QQQ, IWM are included in our list of supported counters.
Client may call in Night desk at 6531 1225 to request for any stocks to be listed as option tradable.

What happens if the underlying share is delisted onto OTC?

POEMS will only allow manual closing of the related option positions when the underlying shares are delisted onto OTC markets. You may place the order via the Night Desk by calling 6531 1225.

Glossary

General

Ask – The price at which a seller is offering to sell an option or stock. When a quote is obtained, the ask is always the higher nuber (on the right-hand side).

Bid – The price at which a buyer is willing to buy a security (buy it from you). Whenever a quote is obtained, the bid is always the lower number (on the left-hand side).

Chicago Board Options Exchange (CBOE) – The Chicago Board Options Exchange; the first national exchange to trade listed stock options.

Long – The buying of a security such as a stock or option with the expectation that the asset will rise in value.

Market Maker – A company or person who is ready to buy or sell securities at all times.

Options Clearing Corporation (OCC) – The issuer of all listed option contracts that are trading on the national option exchanges. It acts as the central counterparty clearing and settlement for equity derivaties for numerous exchanges.

Short – The selling of a security such as a stock or option with the expectation that the asset will fall in value.

Volatility – A measure of the fluctuation in the market price of the underlying security. Mathematically, volatility is the annualised standard deviation of returns.

Volume – The number of shares or contract that is traded in any given period of time within a security or an entire market.

Basic

Assignment – Refers to the process by which the seller (writer) of an option contract is required to fulfill their obligation to buy or sell the underlying asset. When you’re ‘assigned’ a call options, you sell the underlying asset (at the agreed-upon strike price). When you’re ‘assigned’ a put option, you buy the underlying asset at the predetermined strke price.

At-the-Money (ATM) – An option is at the money if the strike price of the option is roughly equivalent to the market price of the underlying security.

Exercise – Refer to the process by which the buyer (holder) of an option contract exercise their right to buy or sell the underlying asset. When you “exercise” a call options, you “trade in” your options for the actual asset (at the agreed-upon strike price). When you “”exercise”” a put option, you force the sale of asset you own at the predetermined strike price.

Exercise/Strike Price – Sometimes called the “strike price” is the price at which the option holder has the right either to purchase or to sell the underlying stock. The option writer is obligated to delivered (Call) or received (Put) the underlying at the strike price.

Expiration date – The day on which an option contract becomes void. The expiration date for listed stock options is the Saturday after the third Friday of the expiration month, so for most trading purposes it is the third Friday of each month. With the introduction of weekly option contracts, there is expiration date which now falls on every Fridays for weekly options.”

Extrinsic (Time) Value – The difference between an option’s price and the intrinsic value, also known as “time” value is the amount that the option buyer is willing to pay for any potential future movement of the underlying asset’s price. Extrinsic value is made up of several important variables: the number of days left until expiration, volatility, prevailing interest rates and dividends.

Implied Volatility – Is the volatility that is expected to happen in the future to an option. It is a mathematical formula based on an option pricing model.

In-the-Money (ITM) – For a call option, when the option’s strike price is below the market price of the underlying stock. For a put option, when the strike price is above the market price of the underlying stock.

Intrinsic Value – Intrinsic value represents the minimum value of the option contract, based on the current price of the underlying asset. It is the difference between the current trading price of the underlying and the strike price of the option contract.

Moneyness – Used in options trading to describe the relationship between the current price of the underlying asset and the strike price of the options. See ITM, ATM, OTM for more details.

Open Interest – Is the number of outstanding option contracts in the exchange market.

Option – A security sold by one party to another that offers the buyer the right, but not the obligation, to buy (call) or sell (put) a security at an agreed-upon price during a certain period of time on or before a specific date.

Option Chain – A way of quoting option prices through a list of all the options (calls and puts) for a given security.

Option Greeks – Options Greeks are a set of measures used to assess the risk and potential reward of options trading strategies. They are dynamic and will change throughout up till expiration of the option and are based on mathematical models and calculations that take into account various factors affecting the price of an option contract.
The five primary options Greeks are:

Delta: measure the change in the price of an option with a $1 change in the price of the stock. Delta for call range between 0 to 1 while for put range between 0 to -1. E.g. Delta of 0.5 means if the underlying stock increase in price by $1, the option price will rise by $0.5.

Gamma: reflects the rate of change in the delta in response to a $1 change of the underlying stock price. E.g. Gamma of 0.1 means if the underlying stock price increasse by $1, the option delta will increase by a corresponding 10%.

Vega: measure the price sensitivity of an option to changes in the volatility of the underlying stock. E.g. Vega of 0.2 means if the implied volatility of the option increase by 1%, the option price will increase by a corresponding $0.2.

Theta: also known as time value of option measure the rate of decline in the value of an option due to the passage of time. E.g. Theta of 0.9 means the option price will decrease by $0.9 per day till expiration.

Rho: measure the rate at which the price of an option changes relative to a change in the risk-free rate of interest i.e. U.S Treasury bill’s risk-free rate. E.g. Rho of 0.2 means the option price will increase by 0.2 for 1% increase in the risk-free rate.

Option Holder – The person who buys the right conveyed by the option.

Option series – Is the expiration month and strike price of an option. In MSFT July 30 Calls, the options series would be July and 30.

Option writer – The person who is the seller of the option right.

Options contract – Denotes the deliverable quantity of goods; options are traded in contract units. Each option contract represents 100 shares of the underlying stock. Hence, it’s necessary to multiply any option premium quote by 100 to get the true cost to the option buyer (or seller). An option quoted for $1.20 really costs $120 for each contract.

Out-of-the-Money (OTM) – For a call, when an option’s strike price is higher than the market price of the underlying stock. For a put, when the strike price is below the market price of the underlying stock.

Premium – The total cost of an option. The premium of an option is basically the sum of the option’s intrinsic and extrinsic (time) value. It’s the price that the holder of an option pays and the writer of an option receives.

Put Option – A put option gives the option buyer the right, but not the obligation, to SELL a stock (or “put” it to someone else) at a specified price, over a specified period of time

Style of option – The style of an option refers to when that option is exercisable. American-style options can be exercised at any time prior to its expiration while European-style options are exercised only at expiration. Majority of the listed equity options traded in the U.S. are American style.

Time Decay – The amount of change in the option price, which will decrease over time as the option gets closer to expiration. Since options are a wasting asset, they lose value over time, this loss increases the closer it gets to expiration.

Underlying Asset (Option class) – This is the underlying security the option is written on. In MSFT July 30 Calls, the underlying asset would be Microsoft.

Bear Call Spread – For most options on equity securities, it is 100 shares.

Wasting Asset – An asset that declines in value over time. An option is an example because it is only valuable until expiration; after that, it becomes worthless.

Intermediate

Bear Call Spread – This strategy involves selling a call option with a lower strike price and simultaneously buying a call option with a higher strike price on the same underlying asset with the same expiration date. The idea behind a bear call spread is to limit potential losses while still allowing for potential profits in a bearish market.

Bear Put Spread – This strategy involves buying a put option with a higher strike price and simultaneously selling a put option with a lower strike price on the same underlying asset with the same expiration date. The idea behind a bear put spread is to limit potential losses while still allowing for potential profits in a bearish market.

Bull Call Spread – This strategy involves buying a call option with a lower strike price and selling a call option with a higher strike price on the same underlying asset, with the same expiration date. The idea behind this strategy is to limit the trader’s potential losses while still allowing for potential profits in a bullish market.

Bull Put Spread – This strategy involves selling a put option with a higher strike price and simultaneously buying a put option with a lower strike price on the same underlying asset, with the same expiration date. The idea behind this strategy is to limit the trader’s potential losses while still allowing for potential profits in a bullish market.

Combination trades – When you take a position in both the call and put options at the same time for the same underlying security.

Covered Call – Having a long position in an asset (stock), combined with a short position in a call option on the same underlying asset. The covered call option strategy is one of the most widely used by investors.

Credit Spread – A credit spread is an options trading strategy that involves selling an option at a higher premium and simultaneously buying an option at a lower premium, with both options having the same expiration date and underlying asset. The goal of the strategy is to generate income by collecting a net credit when entering the trade.

LEAPS – Long-term Equity Anticipation Securities, which are long-term options contracts that have an expiration date of more than one year. LEAPS options are similar to traditional options contracts but with a much longer time horizon, allowing traders and investors to take a longer-term view on the underlying asset.

Long Straddle – This strategy involves buying a call option and a put option at same strike prices and expiration dates on the same underlying asset. The buyer of a long straddle is expecting a significant price movement in the underlying asset but is uncertain about the direction of the movement. Used by traders during the economic announcement or earnings seasons.

Long Strangle – This strategy involves buying a call option and a put option at different strike prices (Call strike > Put Strike) and expiration dates on the same underlying asset. The buyer of a long strangle is expecting a significant price movement in the underlying asset but is uncertain about the direction of the movement. Used by traders during the economic announcement or earnings seasons.

Protective Put – Having a long position in an asset (stock), combined with a long position in a put option on the same underlying asset. The protective options strategy is a basic hedging strategy.

Short Straddle – This strategy involves selling a call option and a put option at the same strike price and expiration date on the same underlying asset. The goal of a short straddle is to profit from the premium received from selling both the call and put options, which will be retained if the underlying asset stays within a certain range until expiration. The maximum profit is limited to the net premium received from selling the options. However, the risk is unlimited if the underlying asset price moves significantly beyond the strike price in either direction, as the trader may be required to buy or sell the underlying asset at the strike price.

Short Strangle – This strategy involves selling a call option and a put option at the different strike price (Call strike > Put Strike) and expiration date on the same underlying asset. The goal of a short strangle is to profit from the premium received from selling both the call and put options, which will be retained if the underlying asset stays within a certain range until expiration. The maximum profit is limited to the net premium received from selling the options. However, the risk is unlimited if the underlying asset price moves significantly beyond the strike price in either direction, as the trader may be required to buy or sell the underlying asset at the strike price.

Advanced

Black-Scholes Model – A mathematical formula used to estimate the theoretical value of financial derivatives, particularly options contracts. It was developed in 1973 by Fischer Black, Robert Merton, and Myron Scholes and is still widely used in finance today. This model is used widely by traders and investors to price options and understand the potential risks and rewards of investing in these instruments.

Butterfly Spread – A butterfly spread is a neutral options strategy that involves buying and selling multiple options at three different strike prices. The goal of this strategy is to profit from the time decay of the options while keeping a limited risk and a limited profit potential.

Call Ratio Back Spread – A Call Ratio Back Spread is an options trading strategy that involves selling a higher number of out-of-the-money call options and buying a smaller number of in-the-money call options. The strategy is used when the trader expects the underlying asset’s price to rise significantly, but wants to limit their potential losses.

Christmas Tree Spread – “It is constructed by buying one long call option at a lower strike price, selling two call options at a higher strike price, and buying one more call option at an even higher strike price. The options must all have the same expiration date. The result is a trade that looks like a Christmas tree when the options are graphed. The strategy has a limited profit potential and a limited risk, making it a popular choice for traders who want to speculate on a moderate rise in the underlying stock’s price while also hedging against significant losses.

Collar Spread – A collar spread, also known as a hedge wrapper, is a trading strategy that involves holding a long position in underlying and simultaneously buying a protective put option while selling a call option against the stock.

Diagonal Spread – A diagonal spread is an options trading strategy that involves buying and selling options with different strike prices and expiration dates. To set up a diagonal spread, an options trader would buy a longer-term option with a higher strike price and sell a shorter-term option with a lower strike price. The options are usually of the same type (either both calls or both puts) and are opened at the same time.

Iron Condor – An advanced options trading strategy that involves the use of two credit spreads, one bear call spread and one bull put spread, on the same underlying asset, with the same expiration date but with different strike prices. The goal of an Iron Condor is to profit from the premium received from selling both the bear call spread and the bull put spread, which will be retained if the underlying asset stays within a certain range until expiration.

Max Pain Theory – “Max pain theory is a concept used in options trading to predict where the price of an underlying asset is likely to settle on expiration day based on the open interest of the options contracts. The theory assumes that market makers will try to minimize their losses by manipulating the price of the underlying asset so that the greatest number of options contracts expire worthless. This theory suggests that the price of the underlying asset will settle at the price at which most options contracts expire out of the money, causing the holders of those options to lose money. By pushing the price of the underlying asset towards this point, market makers can reduce their overall losses.

PCR Ratio – PCR ratio, also known as Put-Call Ratio, is a commonly used technical analysis indicator in the stock market. It is calculated by dividing the total number of traded put options by the total number of traded call options for a particular stock or index over a specified time period, usually a day or a week. The Put-Call Ratio provides insights into market sentiment, as it measures the ratio of bearish to bullish trades. A high PCR ratio indicates that investors are purchasing more puts than calls, suggesting that they are bearish about the market or a particular stock. On the other hand, a low PCR ratio indicates a bullish sentiment, with more investors buying calls than puts.

Synthetic Long Stock – A trader can buy a call option on the stock and simultaneously sell a put option on the same stock with the same expiration date and strike price. This combination of options will result in a payoff that is similar to owning the underlying stock.

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About Strategy & Stock Picks

Strategy & Stock Picks is a quarterly event organised specially for investors to gain professional insights into the outlook of the SG, MY, CN & HK, TH, ID, US, and JP markets and their stocks recommendation. Through these curated sessions, we aim to empower you with insights to better plan and develop your personal investment strategies for your financial goals.

We are entering a more tumultuous macro environment. Economic growth is pinned down by US tariff uncertainty and jittery bond markets. Singapore stands out as Asia's sole triple-A-rated sovereign credit, resilient currency, attractive equity valuations, returning more capital to shareholders and fiscal health to support the economy. Our analysts favour high dividend yielding sectors such as banks, conglomerates and REITs (foreign).

Seize this opportunity to learn from our research analysts and register for our Strategy and Stock Picks event!

Join us online to get valuable insights from our Research Analysts:

June 28, Sat, full-day event (Singapore Market, China & HK Markets, US Market)

June 30, Mon, 1 pm – 2 pm (Malaysia Market)

July 1, Tue, 1 pm – 2 pm (Japan Market)

July 2, Wed, 1 pm – 2 pm (Thailand Market)

July 3, Thu, 1 pm – 2 pm (Indonesia Market)

Programme Flow

Days Hours Minutes Seconds

Sat, 5 Apr 2025 | 10 am – 12 pm

Singapore Market

Paul Chew | Head of Research | Phillip Securities Research and his research analysts

Expand for synopsis

In this turbulent ocean of rising geopolitical tension and the threat of a trade war, Singapore equities remain a sea of calm. Companies are returning capital to shareholders at record levels through increased dividend payouts and share buybacks. The government is increasing fiscal spending and setting up a S$5bn fund to support equities. Sectors favoured by our analysts that are experiencing growth include banks, construction, defence, power, real estate and oil and gas services.

 

Days Hours Minutes Seconds

Sat, 28 Jun 2025 | 9 am - 5 pm

50th Anniversary Special

In this full-day event, market outlooks and stock picks for the Singapore Market, China & Hong Kong Markets, and the US Market will be covered.

 

Whether you’re investing in ETFs, DLCs, REITs, or exploring new opportunities, our curated sessions are designed to help you build smarter and make more informed investment decisions aligned with your financial goals. Enjoy fireside chats with top S-REIT management, fun games with prizes, and many more exciting activities happening on the event day. Stay tuned for more details!

China & HK Markets

Singapore Market

US Market

Days Hours Minutes Seconds

Mon, 30 Jun 2025 | 1 pm – 2 pm

Malaysia Market​

JY Tan | Head of Research | Phillip Research Sdn Bhd

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Our speaker will present an in-depth analysis of the Malaysian economy, explore key sectors, and offer stock recommendations during the session.

Days Hours Minutes Seconds

Tue, 1 Jul 2025 | 1 pm - 2 pm

Japan Market

Tomoyuki Misumi | Research Analyst | Phillip Securities Japan

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Our speaker will present the financial results of major Japanese companies, including his model portfolio companies. He will also highlight key sectors and share strategic updates.

Days Hours Minutes Seconds

Tue, 15 Apr 2025 | 12 pm - 2 pm

China & Hong Kong Markets

Louis Wong | Director | Phillip Securities (HK) Limited

Expand for synopsis

Join us as Louis Wong, Director of Phillip Securities Hong Kong covers the outlook for the China & Hong Kong stock markets and his top stock picks for 2Q2025.

– China & Hong Kong Outlook 2Q2025

– Review of China & Hong Kong stock markets

– Stock Picks

– Q&A

Days Hours Minutes Seconds

Wed, 2 Jul 2025 | 1 pm - 2 pm

Thailand Market

Chutikan Santimetvirul | Head of Equity Strategy | Phillip Securities (Thailand) PCL 

Adisorn Mungparnchon | Assistant Vice President | Phillip Securities (Thailand) PCL

Expand for synopsis

Amid the ongoing trade war, our analysts assess the outlook for the Thai economy to identify which growth engines remain robust, evaluate the potential for policy rate cuts, and highlight equity investment opportunities in fundamentally sound stocks for Q3 2025.

Days Hours Minutes Seconds

Thu, 3 Jul 2025 | 1 pm - 2 pm

Indonesia Market

Jasa Adhimulya | Senior Equity Analyst | Phillip Sekuritas Indonesia

Expand for synopsis

Our speaker would be sharing Indonesia 3Q25 Economic, Market and Investment Insight: Update and Outlook.

Days Hours Minutes Seconds

Thu, 10 Apr 2025 | 7.30 pm - 9 pm

United States Market (Technology Stocks)​

Richard Siaw | Director | Global X ETFs

Glenn Thum | Senior Research Analyst | Phillip Securities Research 

Helena Wang | Research Analyst | Phillip Securities Research  

Zane Aw | Research Analyst | Phillip Securities Research 

Expand for synopsis

Recent policy changes under the new administration are already reshaping the US economy. For example, there is an increased focus on reshoring critical future industries, as well as accelerating electrification to support AI demand through nuclear power. These initiatives are creating new underappreciated investment opportunities. He would also elaborate how to position portfolios in the second quarter for these opportunities, offering insights for investors navigating a quickly evolving landscape and market, followed by our analysts covering various stocks in US big tech and banking sector.

What Others Say

"Better performance in terms of readiness, preparation was more thorough." From Strategy & Stock Picks 1Q2025 “Good practical view and analysis of the market segments as usual.” From Strategy & Stock Picks 2Q2025 “Quite good. Able to justify and explain their analysis and conclusion clearly.” From Strategy & Stock Picks 3Q2024 “Clear explanation on rationale & basis for stock picks & Outlook. Great effort by the team that benefits retail investors keen on Singapore stock market.” From Strategy & Stock Picks 4Q2024

Interested in The Event?

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Featured Speakers

Paul Chew

Head of Research
Phillip Securities Research Paul has 20 years of experience as a fund manager and sell-side analyst. During his time as a fund manager, he has managed multiple funds and mandates including capital guaranteed, dividend income, renewable energy, single country and regionally focused funds. He graduated from Monash University and has completed both his Chartered Financial Analyst and Australian CPA programme.

Louis Wong

Director
Phillip Securities (HK) Limited Mr. Louis Wong is the Director of Phillip Securities (HK) Limited and Phillip Capital Management (HK) Limited. He is one of the most experienced fund managers in Hong Kong with over 30 years of solid experience and a proven track record in the financial markets. His stock selection criteria are stringent, and he takes pride in his thorough understanding and sophisticated analysis of companies before making investment decisions.

Chutikan Santimetvirul

Head of Equity Strategy
Phillip Securities (Thailand) PCL Ms. Chutikan Santimetvirul started her career as a derivative strategist at Phillip Securities (Thailand) in 2007 after she obtained an MBA in Finance from the National Institute of Development Administration (NIDA). She was recently promoted to Head of Equity Strategy at Phillip Research Thailand. With more than 15 years of investment strategy experience, she employs a top-down investment and technical approach to look for appropriate investment themes at the right times. She also updates both institutional and individual investors about the outlook for the Thai stock market.

Glenn Thum

Senior Research Analyst
Phillip Securities Research Glenn specialise in the Banking and Finance sector, with 3 years of experience as a Credit Analyst at a Bank previously. During this time, he prepared credit proposals by conducting consistent critical analysis on the business, market, country and financial information. Glenn graduated with a Bachelor of Business Management from the University of Queensland with a double major in International Business and Human Resources.

Darren Chan

Senior Research Analyst
Phillip Securities Research Darren has over three years of buy-side experience as a fund manager, when he managed multiple funds and mandates including dividend income, growth, as well as customised, Singapore focused and regionally focused funds. He graduated from the University of London with a First-Class Honours degree in Banking and Finance.

Zane Aw

Research Analyst
Phillip Securities Research Zane analyses the stock market and conducts technical analysis to provide investment recommendations. He graduated from Nanyang Technological University with a Bachelor of Accountancy (Honours).

JY Tan

Head of Research
Phillip Capital Malaysia JY is the Head of Research of Phillip Capital Malaysia. He has 10 years of sell side industry experience covering various industries including Energy, Petrochemical, Manufacturing, Automotive and Small-Cap in Malaysia. He is a fellow member of the Association of Chartered Certified Accountants (ACCA).

Miaomiao Liu

Research Analyst 
Phillip Securities Research Miaomiao mainly covers the Singapore REITs sector and graduated from Singapore Management University with a Bachelor's degree in Business Management.

Adisorn Mungparnchon

Assistant Vice President
Phillip Securities (Thailand) PCL Mr. Adisorn Mungparnchon joined Phillip Research Thailand as a sell-side equity analyst in 2013 and has now risen to the ranks of Assistant Vice President. Current sectors that he covers include banking and finance. Before joining Phillip Research Thailand, he spent more than eight years at Kiatnakin Securities where he specialised in banking and finance sectors. He graduated with a MA degree in Business and Economics from the Thai Chamber of Commerce University.

Helena Wang

Research Analyst
Phillip Securities Research Helena covers Hardware, Marketplaces, and ETFs. Helena graduated with a Master’s degree in Financial Technology from Nanyang Technological University.

Jasa Adhimulya

Senior Equity Analyst 
Phillip Sekuritas Indonesia Mr. Jasa Adhimulya has 15 years of experience in the Indonesian capital market. He graduated from Suffolk University in Boston, USA with a Bachelor of Science in Business Administration. He received his post-graduate degree from Griffith University in Brisbane, Australia.

Tomoyuki Misumi

Research Analyst 
Phillip Securities Japan After gaining experience in the finance department of a business company and completing a fund due diligence assignment in wealth management, Tomoyuki Misumi now works as a research analyst in the research department of Phillip Securities Japan. He focuses on fundamental analysis of small-cap firms listed on the Tokyo Pro Market and contributes to strategic research for Japanese retail investors.

Yik Ban Chong

Research Aalyst
Phillip Securities Research Ben covers fundamental research on construction and semiconductor companies. He graduated from the National University of Singapore with a Second-Upper Honours Degree in Industrial and Systems Engineering.

Frequently Asked Questions

Do I have to register separately for individual webinars?

No, you will be registered for all sessions. However, you may choose to attend certain sessions.

Do I need a Zoom account to join the webinar?

You do not need a Zoom account to join the webinar. Simply click the link in the confirmation email and join the session via Zoom Web Client (works best on Chrome). Alternatively, you can download Zoom on desktop or mobile device before the session starts.

Will I receive a reminder to join the webinar?

Yes, you will receive email reminders 1 day, and 1 hour prior to the webinar. Do check your email for the link.

Will the webinar be recorded?

The recorded webinars will be available on our Facebook page and our YouTube page.

How can I receive a copy of the presentation slides?

You will receive an email within 5 working days after the webinar serie, up attending the respective market.

How does Q&A work?

We are using an up-vote system where Q&A will start from questions with the highest number of votes. Due to time constraints, similar questions will only be answered once. Additionally, speakers will only answer questions specific to the presenting market. We will clear all questions after each session to avoid confusing the next speaker.

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Please note that by providing your personal data to register for this event, you give consent to (Phillip Securities Pte Ltd(“PSPL”)), its employees and agents, and/or third-party service providers (whether in or out of Singapore) to collect, use, and/or disclose your personal data for the following purposes:

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