What is a 'Dip Sniper'?

'Dip Sniper' is one of RockFlow's innovative options products. It can guarantee buyers to get instant cash rewards, while having the opportunity to purchase a particular stock at a desired price, in a given time period.

What benefit can 'Dip Sniper' offer to me?

When you are bullish on a company in the long term and want to buy its stock, you might have an ideal buying price in mind, and are willing to buy a certain amount of it as long as the stock price goes down to that ideal price in the next week/month/quarter.

'Dip Sniper' is just perfect for this scenario! The product offers different buying plans (stock, ideal buying price and expiry date) to choose from. What's better, even if you don't get to buy the stock eventually, you will for sure get cash rewards immediately after you buy a 'Dip Sniper' product.

Nature of 'Dip Sniper'

The nature of 'Dip Sniper' is the selling of put option. RockFlow has selected a list of high potential stocks from the options pool, and simplified the product innovatively so that the product can be easy for first timers. The cash earnings are the price of the put option that the buyers pay to you. The complete life cycle of buying a 'Dip Sniper' is:

Choosing a 'Dip Sniper' (sell a put option) is a great way for you to acquire shares of a good company at a desired price and earn additional income. After RockFlow's optimization, options are no longer an exclusive trading strategy only for professional investors. We hope that Rockers can easily participate and experience the fun of option investment.

Where do I find 'Dip Sniper' at RockFlow app?

You can click on the 'Dip Sniper' section on the stock details page for the stock's 'Dip Sniper' product list, or enter 'Dip Sniper' product glossaries from the main page.

How do I buy a 'Dip Sniper' product?

It's very easy! RockFlow has prepared a 'Dip Sniper' product with a combination of information of "stock, target purchase price, and expiration date" for you. All you need to do is to choose which one to buy.

  1. Choose your long-term bullish stocks
  2. Determine the target purchase price of this stock in your mind
  3. Determine how long you are willing to buy the stock at this price
  4. Choose the quantity to buy, select purchase, and the product will be in your bag!

What happens after I buy a 'Dip Sniper' product?

As mentioned above in the "Nature of 'Dip Sniper' section: when you purchase a 'Dip Sniper', RockFlow will freeze a part of the funds required to buy stocks in your account as a margin. As long as the transaction is successful, you will immediately get cash earnings 🎉.

After getting your cash proceeds, you just have to wait for the good buys to reach the end state. There are two cases of ending:

  1. If the expiration date of the product is reached and the stock is not obtained, your initial frozen deposit will be returned;
  2. Before the expiration date, you have obtained an agreed number of stocks at the target price specified. After one of the above outcomes is reached, this 'Dip Sniper' product will disappear from your holdings.

Example

Rocker Bobby is bullish on Apple stock (AAPL) for a long time and wants to open a position of 10,000 shares of Apple, but feels that the current price of $150 per share is a bit expensive. Therefore, Bobby continued to buy 100 stocks of Apple's 'Dip Sniper' products with a target price of 130 US dollars on RockFlow and a 5-day expiry period.

  1. If the apple does not fall below $130 by the maturity date, his income is $40 _ 100 units of good buy = $4000, the annualized rate of return = 4000 / (130 _ 10000 shares) / 5 * 365 = 22.46%, he can continue with this kind of investment strategy once a week!
  2. If the apple falls below $130 by the maturity date, his actual purchase cost of the apple is = 130 - (40/100) = 129.6, and the cost is also reduced by $4,000.

The risk of buying a 'Dip Sniper' product

The risks and benefits of any investment coexist. The risk of a good buy mainly comes from the decline in stock prices. Because the price for buying the stock is agreed, but the timing of the purchase is not certain, so when the investor buys the stock through 'Dip Sniper', the stock price may already be lower than the original agreed price. However, RockFlow screens out good companies with long-term investment value, and only provides good buy products with considerable returns from these companies. Rockers, please also choose companies that you are optimistic about in the long term, and don't blindly pursue approximate annualized returns.

Finally, we would like to remind everyone to invest rationally. Within the risk range that you can bear, trade 'Dip Sniper' rationally!