Puts on low priced stocks

Discussion in 'Options' started by Jdesey, May 2, 2025 at 6:45 PM.

  1. Jdesey

    Jdesey

    this has to be a bad idea. I love the chart on these total wrecks, like PLUG,,, but the stock is $.84.... like how far could it go down. I probably need a minimum price like the underlying must be above $10 or $20
     
    TrailerParkTed likes this.
  2. spy

    spy

    fun.jpg
    At 58 I'm guessing you've accumulated some wealth. Out of curiosity... what's your current day job? Or are you retired now; what was your profession? If this question is too personal I'll understand.
     
  3. Jdesey

    Jdesey

    I don’t mind answering. I actually have a pretty great situation I split my time half of the year here on Maui Hawaii in Paradise and the other half of the year in Los Angeles. I actually do have a sales job that I still conduct, I do a high ticket sales item via Zoom video meetings, but I’m really burned out on sales I did it my whole career. But this current sales role is portable so I can do it from any location I wish.

    for me the goal of trading has always been to make my full-time living doing it. I’ve had moments here and there where it was my soul source of income. I’m looking forward to have that long-term
     
    spy likes this.
  4. Don't waste your mind and time analyzing, trading, an 84 cent stock. Or Any stock for that matter.

    Learn to understand the broad market S&P movement. If you can do this, all your Disneyland StarWars steakhouse dreams will come true. Be a big game hunter
     
    Last edited: May 2, 2025 at 7:53 PM
  5. spy

    spy

    Cool! I've come to understand that selling things of value (even for a modest markup) is a good way of making extra money. It's a skill I think most people would like to have and continuously improve. GL
     
  6. Sekiyo

    Sekiyo

    0.6$ might be a target but that's already the 5/9/25 (6DTE or nearest expiration) implied move (0.66).

    Would be a 1:1 reward to risk with the 1$ strike @ 0.2

    Even if it goes to zero it's a 4:1 ... would pass.
     
    TrailerParkTed likes this.
  7. I appreciate your posts, it’s refreshing seeing different strategies based off logic and common sense. I also buy puts on low dollar pumps, one trade was this week was $2 OMEX for $.50ish after the stock failed $2. Thanks again!
     
    Sekiyo likes this.