From stocks to options: A Singapore investor’s first steps on moomoo

This post was created in partnership with Moomoo Singapore. All views and opinions expressed in this article are Beansprout's objective and professional opinions.

What happened?

Options trading has grown in popularity among investors in recent years.

I’ve been investing in US stocks and ETFs for some time, and I’ve always intended to explore options, but never quite got around to it.

I hesitated partly because options are often described as complex, risky, and filled with jargon that can feel overwhelming if you’re just starting.

At the same time, as I continued to build my US investment portfolio, I started to see how options could complement what I was already doing, 

It allows me to gain exposure with less upfront capital, express a view on a stock in a more defined way, or find ways to potentially earn a return even when markets move sideways.

Recently, I revisited the idea of adding options to my trading toolkit, not as a replacement for long-term investing, but as an additional layer of flexibility.

As I was already using moomoo to invest in US stocks, I noticed that the platform had introduced a range of features aimed at helping beginners like myself get started with options. 

In this article, I’ll share what I learned from trying these features and placing my first options trade on moomoo. 

What even is an options trade?

An options buy trade is a contract that gives you the right, but not the obligation, to buy or sell a stock at a predetermined price within a specific period of time.

There are two main types:

• Call options: give you the right to buy a stock
• Put options: give you the right to sell a stock

With options, you can express a view on a stock with more flexibility. 

Say NVDA is currently trading at $220 , and you think it could go higher over the next month.

Instead of buying NVDA shares outright, you could buy a call option, which gives you the right to buy NVDA at a fixed price (say $230) within a set timeframe (e.g., in 1 month).

If NVDA rises above $230 within that period, your option increases in value, if it doesn’t, you can simply let the option expire. 

Options have a defined timeframe (expiry date) and a defined risk. 

When you buy an option, the most you can lose is typically the premium you paid. This makes your downside clearer from the start.

Of course, this added flexibility also comes with more moving parts, such as pricing, timing, and different strategies, which is why options can feel intimidating at first.

That’s exactly where having the right tools matters. 

When I first started exploring options on moomoo, seeing what I could gain, what I could lose, and under what conditions all laid out clearly made it easier to grasp how everything worked.

Why I chose Moomoo to try options trading

#1 – Simplifying options strategy with Strategy Builder

One of the biggest barriers to options is simply knowing where to start.

Moomoo’s Options Strategy Builder simplifies the process for beginners. 

Instead of choosing from thousands of contracts, you start with a simple market view (e.g. bullish, bearish, neutral), and the platform suggests strategies that match that view.

For example, if I think NVDA will rise, I can select a bullish view. The platform suggests strategies like Long Call (buying a call option) or Short Put (selling a put option for income)

I can see the potential profit, potential losses, probability of profit, and required margin (if any), and these key metrics are presented alongside a visual P/L chart. 

This made it much easier to understand how each trade behaves under different price scenarios before actually placing it. 

For beginners, this helps make the learning curve more manageable. 

You can start with something straightforward like a single-leg call or put, and only explore more complex strategies, such as covered calls, straddles, and iron condors, later on. 

#2 – Visualise your risk before placing a trade with the P&L analysis tool

What made the biggest difference for me was the ability to see the trade before committing to it.

On moomoo, the P/L analysis tool is built directly into the options workflow. 

Within the Strategy Builder itself, each suggested strategy already comes with a built-in P/L chart, showing you the potential payoff profile before you even select a contract.

If you want to go deeper, you can access it manually. 

Once you’re on a stock (e.g. NVDA), you can tap into the Options tab, select a contract from the options chain, and then go into the “Analysis” section. 

This is where the full P/L breakdown and additional details live.

Across both views, the P/L chart lays out:

• Your maximum profit and maximum loss
• Your breakeven point
• How your trade performs across different price scenarios

Instead of trying to calculate outcomes manually, you can visualise them instantly, which makes it much easier to understand what you’re getting into.

For beginners, the P/L diagram essentially shows the full payoff profile of a trade at a glance, helping you understand both the upside and downside clearly before entering a position. 

You can intuitively see break-even points, profit/loss ranges, and even probability estimates based on the selected strategy.

#3 – Built-in learning for beginners

Moomoo provides a comprehensive suite of free educational resources through its "Options Class" feature. 

They also provide the Options Pro Bootcamp, a structured program that rewards investors with up to US$70 in cash and points. 

Participants earn these rewards by maintaining daily check-ins and engaging with content such as instructional videos and articles.

The bootcamp both incentivises learning and provides bite-sized guided content on options fundamentals, strategies, and execution. 

This makes it easier to learn alongside actually trying out trades.

They also offer options trading gift packs, which can go up to US$503 in rewards for higher funding tiers.

moomoo Singapore has also launched Moomoo Options Playbook. This is a physical guide to help investors learn common options strategies in a more practical and accessible way.

To get a copy:

• New moomoo users: Sign up through Beansprout and fund at least S$1,500 to receive the book
• Existing moomoo users who are new to options: Complete either 2 stock trades or 1 options trade to redeem a free copy

If you’ve been curious about options but didn’t know where to start, this could be a useful way to build a stronger foundation before diving in.

Learn more about Moomoo Options Playbook here. 

#4 – Relatively straightforward cost structure

Beginners can start their options trading journey at relatively low fees.

New-to-option users benefit from zero* commissions for up to six months, which waives the standard $0.65 per contract fee, making it easy to get started without overthinking it. 

There’s also a platform fee of $0.30 per contract, with a minimum charge of $0.99 per order.

Additionally, Moomoo offers two distinct pricing plans (fixed and tiered pricing) to accommodate different types of investors. 

This flexibility allows traders to choose the most cost-effective option based on their order volume and trading frequency.

From theory to practice: Executing my first options trade

Step 1: Select a Familiar Underlying Asset 

Focus on a stock you understand deeply. A solid grasp of its fundamentals and the current market environment is essential for determining whether to take a long or short position.

Step 2: Start with Single-Leg Strategies 

For beginners, buying a Call or Put is the easiest entry point. 

For example, based on a positive outlook for NVDA’s upcoming earnings, I decided to express a bullish sentiment by taking a Long Call position.

Using the Strategy Builder, I selected a bullish outlook for NVDA and input a target price of around $220 (about +30% from the current price at the time), and the expiry in July 2026 (after the earnings)

Based on this, the platform suggested a Long Call setup with a strike price of $170. 

Step 3: Utilise the P/L Analysis Tool 

Before execution, I use Moomoo’s P/L Curve to visualize the risk-reward profile. 

The trade showed:

• Maximum loss: ~-$155 (premium paid)
• Breakeven price: ~$185.25
• Profit potential: ~$3,400+ (if NVDA reaches the target scenario)
• Return on risk: ~220%+
• Profit probability: ~32%

I could immediately understand the “worst-case” scenario if the option expires worthless, what needed to happen for the trade to work, and how realistic the probability of profit was

Step 4: Analyse Liquidity and Execute 

Before placing the trade, I moved to the options chain to select the specific contract.

This is where execution becomes more important than just the idea. Even if your view is correct, poor liquidity or wide spreads can affect your entry price.

On the options chain, I focused on a few key things:

• Open interest: I looked for strike prices with higher open interest, as these tend to have more active trading
• Bid-ask spread: A tighter spread usually means you can enter and exit the trade more efficiently
• Strike and expiry alignment: Making sure it matches the setup from the Strategy Builder

These “clusters” of higher open interest often indicate better liquidity, which helps reduce hidden costs when trading.

Once I selected the contract (in this case, the NVDA $170 call), I moved to the order screen.

Here, I could:

• Set a limit order price (around $15.15 per contract in this example)
• Choose the number of contracts
• Review the total premium (~$1,515 for 1 contract)

After confirming that the premium fit within my budget and that the setup aligned with my original view, I placed the trade.

Things to know before your first options trade

#1 – Options expiry

Unlike stocks, options come with an expiry date.

If the stock doesn’t move in your favour within that timeframe, the option can expire worthless—meaning you could lose the entire premium paid.

#2 – Implied volatility impacts option price

Implied Volatility (IV) reflects how much the market expects a stock to move, and it directly impacts how expensive an option is.

• Low IV → cheaper options, lower expected movement
• High IV → more expensive options, higher expected movement

For stocks like NVDA or TSLA, IV can spike around events like earnings. This means you could be right on direction, but still lose money if volatility drops (known as IV crush).

Using tools like the P/L visualiser on moomoo helps you better understand how both price and volatility can affect your trade.

#3 – Start small

Options offer leverage, which can amplify both gains and losses.

When starting out, it helps to keep position sizes small (for example, 1 to 5 contracts) so you can learn how the mechanics work without taking on outsized risk.

What would Beansprout do?

Trying options for the first time felt intimidating, but in practice, it was more structured than I expected.

What made the difference wasn’t just understanding what options are, but having a clear way to translate a market view into an actual trade, see the potential outcomes upfront, and execute with confidence. 

Tools like the Strategy Builder and P/L visualiser on moomoo helped bridge that gap between theory and action.

At the same time, this experience reinforced that options aren’t about taking bigger risks but more about making more informed and defined decisions. 

Knowing your maximum loss, your timeframe, and what needs to happen for a trade to work is what ultimately makes the difference.

For investors who are curious about options, starting simple and small can make the process far less intimidating.

If you’re looking to explore options trading, platforms like moomoo can make the learning curve more manageable with built-in tools and guided features. 

You can sign up for moomoo to start exploring options strategies and better understand your trades before executing.

Sign up for moomoo via Beansprout to receive a S$50 FairPrice voucher within 5 working days when you sign up using the promo code BEANSPROUTS1, along with up to S$1,200* in welcome rewards*. 

Learn more about the promo here. 

Disclaimer

 *Campaign T&C apply. For 0 commission, platform, and other fees apply. 

T&Cs apply. Options trading involves significant risk and is not suitable for all investors.  Moomoo Singapore is the sponsor of this content. This content is for informational purposes only, does not constitute financial advice, and reflects Beansprout's independent opinion. I did my own research on options trading and this reflects my personal approach to investing. Please conduct your own research and invest according to your personal risk tolerance. 

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