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Forum nameGeneral Discussion
Topic subjectQuestion about options
Topic URLhttp://board.okayplayer.com/okp.php?az=show_topic&forum=4&topic_id=13414182&mesg_id=13415494
13415494, Question about options
Posted by After_Words, Fri Dec-04-20 06:43 PM
So let's say you've got $12,000 to spend. Would you rather buy 100 shares of Apple (give or take a couple hundred... I know it's at $122 right now) and sell a call for Apple at a $126 strike price and collect roughly $60 a week on the premium?

Or would you rather sell puts of various other companies? For example, DraftKings at $45 (currently at $49.25) to collect $40, NIO at $35 (currently at $42.95, but pretty volatile) to collect $40, and let's just say maybe 2 contracts of Workhorse at $20 each (currently at $21.95) to collect $45 each.

The reason I bring this up is because Apple seems safer and you're almost likely to collect the $60 a week on selling the call. On the flip side, those three other stocks are kind of volatile and I may end up being stuck with one of those stocks, although the premium may be higher (I think combined, in this hypothetical example, the premiums would be $170 a week).

And I'm sorry if those terms aren't the right terms. I hope you got the general gist of what I was saying. I just started option trading and I'm trying to figure out the right way to attack it.