Good stocks under $5.50 for writing puts

Discussion in 'Options' started by scotta65, Dec 13, 2012.

  1. scotta65

    scotta65

    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?
     
  2. 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.
     
  3. "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.
     
  4. you'll spend more in comissions.

    go to vegas. at least there's no commissions at those tables (save the poker room).
     
  5. 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.
     
  6. 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.
     
  7. Are you on Christmas vacation from Rutgers or Syracuse? :confused:
     
  8. ?....Dang?......?.....what about DNDN? :confused:
     
  9. Hallucinogens? Your point that hasn't been made repeatedly?
     
  10. 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. :cool:
     
    #10     Dec 13, 2012