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Does anyone buy or sell options on individual stocks?
I'm thinking mainly for fun since the SPX option trading and buy and hold should be the main portfolio.
I've been considering doing cash-secured puts (CSP) and then covered calls, as well as credit spreads.
Is selling options on high IV stocks a poor and risk move?
I've profited from a credit call spread on a so called meme stock (PLTR) but that may just be luck that it's dropping now.
I'm currently losing on a CSP on GME. At first I thought I wouldn't mind holding if I get assigned but now I've having second thought.
Edit: To be clear, these strategies are sort of just a "fun" account and maybe hopefully some slight income. I feel like I may be taking on too large risk for the reward though.
Same here. I just did that for fun on some individual stocks I own. Not worth the effort. 🙂
What underlyings have you bought or sell options for?
What strategy did you carry out?
@bob-jane Company stock that was leftover after I left work. And I sold calls with a 5-10 Delta.
Is 5-10 delta the best calls to sell if we're trying to sell covered calls?
You mentioned that it wasn't worth the time, is it because the premiums are just not worth it?
Just for fun I bought some LEAPS call for UBER earlier this year expiring 2021. The ones I bought in January had losses (that was before the "beer" situation) but the ones I bought in March delivered very good return.
I don't really treat this as any kind of strategy or anything but rather just having fun, for the same reason people put their main portfolio in an index but still buy individual stocks for fun.
I don't really treat this as any kind of strategy or anything but rather just having fun, for the same reason people put their main portfolio in an index but still buy individual stocks for fun.
Same here! It's something fun to do to prevent itchy fingers when the main strategy is slow and boring.
Which stocks did you buy calls on, and what are the strikes and expirys?
So tempted to sell deep OOM puts on TSLA...the IV is so high!
@navypack I hear ya! I don't like OTM puts on individual stocks because of the additional idiosyncratic risk (individual stocks can go to zero, the index not so much) and the worse tax treatment. And the hassle of getting rid of underwater position with a physical settlement.
But the TSLA options look tempting, I agree! 🙂