I only have around $600 cash right now and I want to make a little money by writing puts. Are there any stocks out there trading around $5.50 that have decent option interest?
There are $5 stocks that pay a decent credit (relative to the strike price), but are they decent companies worth the risk??? I would suggest collecting more cash first, so you can invest in better quality companies, at higher prices of $10 or higher. You might be throwing darts at those $3 - $5 companies. It might be fun to do, and a good learning experience, but it probably will not end well for you over time. But others may disagree.
"I want to make a little money by writing puts" You sound like a kid saying he wants to make a little money by delivering newspapers. You are underfunded by at least a factor of 10 to even think of starting to write puts... and I would say a factor of 20 to do it with any expectation of success. The most likely outcome would be for you to lose your $600 in a month or so.
you'll spend more in comissions. go to vegas. at least there's no commissions at those tables (save the poker room).
You have two options , penny stocks or weekly options. If you jump on the train on time , you'll be rolling with 5 k in no time.
The OP's logic is that they're cash-secured and he can afford to be assigned. Nothing wrong with it and I give him credit for having more brains than cash. Better than the foolish VP sitting with $4MM in ENE stock before the crash. That being said, $600 is nothing and you simply can't diversify. I'll send you some ideas in a PM.
1) Is that what they produce? I never knew. :eek: 2) It's only $600. He'll have time to earn it back if it goes Chapter-7, 10, 11 or 13 on him.