How to Prepare for a Job Interview

As I am writing this post, I have come a long way... from job hunting to preparing myself for job interviews to negotiating and eventually clinching the job.  Maybe it is an "Asian" thing, I realise we tend to be overly humble and undersell our abilities during interviews. This may lead to missed opportunities even if know we are fully aware that we are qualified for the role. When it comes to job interviews, from my past experiences I can say that over preparation is underrated. I went in the interviews over prepared, from researching the background of the company and common questions to reading reviews on Glassdoor to see what feedback I could gather before meeting the interviewers in person. You can read about my Checklist for Starting a New Job for readers who have gone through this stage. 



I have come up with a Checklist for you readers sharing How I prepare for my Job Interviews

How to Start Your New Job Right

Congrats now that you have landed your dream job. For those who are nervous about starting your new job, I am dropping my checklist over here to make sure you readers start off on the right foot! 

For readers who would want to find out how I prepare for my Job Interviews, you can do so here. 

1. Get ready to introduce yourself a lot

- be familiar of the managers' name, HR names, what you will be doing with the team

Guide to Investing Options [Options Clearing Corporation]

1. Basics: When you purchase an option --> Long position 
    Write an option --> Short position 

2. Set your Strategy 
    - Want more Income --> write Covered Calls
    - Protect the value of the stocks that you own 
                   - Purchase Puts
                   - Purchase options on an Index that tracks the type of stocks in my portfolio 
the more time until expiration, the higher the option premium, because the chance of reaching strike price is greater 

Volatility Skew Information

Volatility Skew
- situation where individual options on a particular entity have different implied volatilities that form a pattern 
- the pattern can be a positive or negative skew

Positive Skew (forward skew)
- higher strikes, higher IV

Negative Skew (reverse skew)
- lower strikes, higher IV 

Horizontal Skew
- long term options with lower IV
- because longer term options have uncertainty of future news


If skew is (+) and IV is Low Percentile --> Put Backspread
If skew is (+) and IV is High Percentile --> Call Ratio Spread
If skew is (-) and IV is Low Percentile --> Call Backspread
If skew is (-) and IV is High Percentile --> Put Ratio Backspread



Credits: https://www.optionstrategist.com/blog/2013/03/volatility-skew-information

About our Volatility Data - Implied Volatility and Historical Volatility

Estimate of the volatility of the underlying stock

Low implied volatility --> Option considered cheap 

Don't blindly buy or sell based on Implied Volatility. There may, in fact, be a good reason why the options are expensive. Perhaps the company is involved in a major litigation, or it is a biotech company that has a major drug up for review before the FDA. Conversely, if options are very cheap, perhaps the company has agreed on an all -cash buyout. 


Index Symbols begin with $

Futures Symbols begin with @


Credits: https://www.optionstrategist.com/products/category/free-analysis-tool

Covered Call Writing: Why Cash- Base Put Selling is Superior

Naked Put Selling = Covered call writing (but naked is better strategy due to lower cost)

Covered call requires 2 commissions (stock and written  call). If you want to sell, it will be another round of commissions.

Naked Put - expires worthless


Credits: https://www.optionstrategist.com/blog/2012/11/covered-call-writing-why-cash-based-put-selling-superior

Put - Call Ratios

The trading volume of put options to call options indicates the Investor Sentiment

How to interpret put-call ratio:
- higher ratio: time to sell
but some see it as a Contrarian Indicator



Credits: https://www.optionstrategist.com/blog/2012/11/about-put-call-ratios

Which Option To Buy: Deciding What Contract Is Best

(i) Day Trading

- Uses the underlying instrument with the highest possible delta (trade the stock, NOT the option)

(ii) Short term Trading (1 to 2 weeks)

- Can buy short term

- In-the-money option

- Large delta (respond closely to the movement of the underlying)

(iii) Intermediate term Trading

- Can use lower delta due to longer trading period

- Large moves might happen due to longer trading period

- trade at-the-money option

(iv) Long Term Trading

- use even lower delta

- at-the-money option

- LEAPS option

Credits: https://www.optionstrategist.com/products/category/free-analysis-tool

Options Trading Glossary

Backspread	Any spread in which in-the-money options are sold and a greater quantity of out-of-the-money options are bought. In a more general sense, it may refer to any strategy that makes money when the market becomes volatile.
Bear spread	A spread which makes money if the underlying stock or future declines in price. Typically constructed by buying puts at one strike and selling a like number of puts with a lower strike
Bull spread	A spread which makes money if the underlying stock or future rises in price. Typically, one would buy calls at a certain strike and sell the same number of calls at a higher strike.
Calendar spread (time spread)	A spread in which one sells options at one strike and buys options at a longer maturity with the same striking price. In a neutral calendar spread, one would not necessarily buy and sell the same quantity of options. The spread may be constructed with either puts or calls, but they are not mixed; that is, if one buys calls, he also sells calls to complete the spread -- puts would not be involved in that case.
Call Calendar Spread	buy long term call + sell equal no. of near month at-the-money calls of the same underlying at the same strike price
	why? --> sell time. We hope that Price remains unchanged at expiration
Bull Calendar Spread	if you are bullish --> sell near month calls
Neutral Calendar Spread	if you are neutral --> sell near month call
Put Calendar Spread	replicate with puts
Covered Option	covered means you have an offsetting position in that underlying security
	written calls means covered by long stock
	written puts means covered by short stock
Beta	A measure of how a stock’s volatility changes in relation to the overall market. A beta may help you determine how closely a stock in your portfolio tracks the movement of an index, if you’re considering hedging with index options. A beta of 1.5 means a stock gains 1.5 points for every point the index gains—and loses 1.5 points for every point the index loses.
Alpha	A measure of how a stock performs in relation to a benchmark, independent of its beta. A positive alpha means that the stock outperformed what the beta predicted, and a negative alpha means the stock didn’ t perform as well as predicted.
Delta	The amount by which an option's price will change if the underlying security moves one point in price. See also 'position delta'.
	The general rule is this: the shorter-term the strategy, the higher the delta should be of the instrument being used to trade the strategy. (more movement)
	ie. Delta increase as you get closer to expiration for near or at the money options
Gamma	The amount by which the delta will change when the underlying stock moves by one point. See delta.
Theta	Theta is a way to measure the impact and exposure of the passage of time on an option’s price.
	In theory, theta represents how much an option’s premium may decay per day or week with all other market factors and variables remaining the same.
	Theta is generally expressed as a negative number, and reflects the amount by which the option’s value will decrease every day.
Vega	A term to describe the amount by which an option's price will change for a 1 percent change in the volatility of the underlying security.
Rho	Rho is a value intended to measure an option contract’s sensitivity to interest rate changes.
	It is a way to assess the potential change in an option’s value given a change in interest rates.
	Rho and interest rate changes have the strongest impact on longer-term options.
	most traders agree that rho has less of a measurable impact on option prices overall
Open Interest	Net outstanding open contracts that have been purchased
	meaning only count 1 side
Ratio Spread	no of options sold > number purchased
Straddle	Any position that involves both puts and calls on the same side of the market, with same strike price
	Both options have the same underlying and same expiration date
Strangle	Any position that involves both puts and calls on the same side of the market, with Lower strike price
	Both options have the same underlying and same expiration date
Open interest	The number of open positions for a particular options series. High open interest means that there are many open positions on a particular option, but it is not necessarily a sign of bullishness or bearishness.
Volume	The number of contracts—both opening and closing transactions—traded over a certain period. A high daily volume means many investors opened or closed positions on a given day.
Liquidity	The more buyers and sellers in the market, the greater the liquidity for a particular options series. Higher liquidity may mean that there is a demand for a particular option, which might increase the premium if there are lots of buyers, or decrease the premium if there are lots of sellers.
Married Put	You simultaneously purchase shares of stock and a put on that stock

Credits: https://www.optionstrategist.com/products/category/free-analysis-tools

How much does it cost to buy a Second Property in Singapore

Case Study

Cost of Condo: Suburb Properties - OCR
New Sale: $1.2 million
Currently Own HDB flat. Purchase Condo as 2nd House - Non-Residential.
Outstanding Bank Loan.

(i) Down Payment
Loan Tenure does not exceed 30 years and sum of loan tenure and age of borrower at the time of applying for the loan is below 65 years. Down payment is 50% of the purchase price or market valuation, whichever is lower. The first 25% in cash, next 25% in cash and or CPF.	50% x 1.2 mil = $600,000
Loan Tenure exceed 30 years (max 35 years) and sum of loan tenure and age of borrower at the time of applying for the loan is above 65 years. Down payment is 70% of the purchase price or market valuation, whichever is lower. The first 25% in cash, next 45% in cash and or CPF.	70% x 1.2 mil = $840,000
ABSD	- pay 12% of property value or purchase price, whichever is Higher
	12% x 1.2 mil = 144,000
	- need to set aside CPF minimum retirement sum before you can use excess CPF money in your OA account
Conveyancing Fee
Professional Legal Fees	$2000 - $2500
GST	7%
- Stamp Duty paid in cash/ CPF:
- First $180,000 - 1%
- Next $180,000 - 2%
- Next $640,000 - 3%
- Remaining Amt - 4%
Conveyancing Account Fee	$200 - $400
Total Upfront Payment = Down Payment + ABSD + Stamp Duty = 600,000 + 144,000 + 3000 = $747,000
However, If able to pay off 1st housing loan
- will be considered as 1st loan
- 5% downpayment in cash, 15% downpayment in CPF
- 3% stamp duty
- 7% ABSD
(ii) Monthly Re- Payment (Bank Loan)
Depends on Bank Loan Interest Rates	Rough estimate for calculation purpose = $2100
(iii) Monthly Maintenance Fee	Estimated $300/ month
(iv) Property Tax
Depends on the Annual Value of the home.
Based on rental income	e.g $3000 x 12 months = $36,000
	Residential Tax Rates (Non- owner Occupied Residential Properties) = (10% x 30,000) + (12% x 6000) = 3000 + 720 = $ 3720 annual
(v) Renovation and Furniture
Reno	$30,000
Furniture	$20,000

Credits: Straits Time, EdgeProp, iCompareLoan, PropertyGuru, Dollars and Sense, 99.co, Ezbuy, HomeLoanWhiz

Decoupling to Buy a Property in Singapore

What is Decoupling (Fractional Purchase)

Decoupling happens when one partner's share in a property is transferred to the other person.


Why Consider Decoupling

This creates a sole owner, leaving the other half of the pair free to buy another home without having to pay the ABSD (Additional Buyer Stamp Duty), as that purchase will be seen as his or her first.

How to Purchase IPO on Interactive Brokers

What is IPO - Initial Public Offering


IPO is the very first sale of stock issued by a company to the public. An IPO is underwritten by 1 or more investment banks. Through this process, a privately held company is transformed into a public company.


In this article, I am going to write about purchasing US IPO as a foreigner (Singaporean) from Interactive Brokers Classic Account.


Steps:

1. Log into Account Management --> Trading --> IPO Subscription


You will be tasked to complete a declaration form.


Once done, you will be taken into the IPO Subscriptions page where the currently active IPO subscriptions will be shown.






2. Request Shares


3. Place your order


On the evening the IPO "prices," your broker will notify you that the offering is going forward. You will be given a deadline to place your order. Only after you place the order will you find out for certain if you were able to buy any shares.


Please be noted that according to Interactive Brokers website:

IB generally does not operate as an underwriter or selling agent of IPO shares, the first opportunity customers have to transact in such shares does not take place until the issue begins trading in the secondary market.

Source: https://ibkr.info/node/1897

https://www.interactivebrokers.com.hk/en/software/am/am/trade/ipo_subscription.htm


Conclusion

If you are really keen to get your hands on IPO, you can consider signing up with the other US Brokerages such as TD Ameritrade, Fidelity or Charles Schwab as they aren't available from Interactive Brokers. However, you can read here why I chose to open an account with IB.

TD Ameritrade will permit you to invest in an IPO if you have at least $250,000 in assets with the firm or have traded stock with TD Ameritrade at least 30 times in the last 12 months.

Fidelity's requirements are similar to TD Ameritrade's. Customers having $100,000 with the broker are eligible to participate in IPOs led by underwriter Kohlberg Kravis Roberts & Co. (KKR). Eligibility for other IPOs might be restricted to customers having as much as $500,000 with Fidelity -- or placing 36 trades in the past year would qualify a customer to participate. Charles Schwab's requirements are even easier to meet: $100,000 in your account, or 36 trades in your history.


Source: https://www.nasdaq.com/article/how-to-invest-in-ipos-cm875904

What to Consider Before Buying a Second Property in Singapore

A random thought led to this random article. Though I am well aware that I cannot afford to purchase a second property at this point in time, I still decided to do my research out of curiosity to see if I can afford to be the home owner of a second property.

One cannot only look at the mere figures for property purchase decision, he must also consider the qualitative factors before making a commitment. For the numbers and cost calculation, please refer to my blog post on How much does it cost to buy a 2nd property in Singapore.

Interactive Broker Trader Workstation (TWS) API Set Up

Interactive Brokers Trader Workstation (TWS) is comprehensive enough for my investment management and research. However, for curiosity sake I decided to try out their API software to see how far it can take me. If you simply want a fuss free method, please check out my post here on Alpha Vantage Excel Add-in. Please not that I did not subscribe to Interactive Brokers market data services hence there will be limitation on the functions available on their API calls. 

Allow me to digress, they do offer FREE Research and News Services on their TWS platform for users to access. However, there is a monthly fee for viewing real time quotes and premium newswires. Hence stated otherwise, the market data you are viewing are delayed quotes. Fees differ according to the stock exchange and type of user (Pro or Non- Pro). For the most of us, if you are reading this, you are most likely a Non-Pro user. 

Source: Interactive Brokers website
"Non-Professional - is any natural person and cannot be a corporation, trust, organization, institution or partnership account."

Alternative to setting up Alpha Vantage API

For those (like myself) who is still facing some 'technical difficulties' setting up the Alpha Vantage API, I have 'discovered' an alternative method which is more straightforward. Another reason has to be so far the tool is working fine, I have not encountered any "0" values for those API calls. This post is in reference to my previous post on Open Source API for Investment Tracking. 

Credits to LelandGrunt for his Excel Add- in tool found on GitHub.