Good stocks under $5.50 for writing puts

Quote from 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?
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hey man...
google has a nice stock screener for the beginning of your search.. if anyone knows your plight.. i do.. while having less to start out with seems like a disadvantage to me it isn't.. you sure have alot more upside then downside. quickly you will want to leverage because of the nominal amounts of return you get in selling cash secured puts.. forget nominal amounts when trading 600 bucks.. make sense of the commissions.. don't over trade.. and realize that you will come into more money if you trade successfully..

look at this.. RF the all hated banks.. Regions financial.. one i almost pulled the trigger on in summer 2011.. but regretfully i didn't.. i don't wanna get into an argument about this particular sector or name for that matter..

jan 6 striked put is trading at.. .06 cents.. that means.. you will get six bucks for selling that put.. thats a 1 percent return for a little over a month. you can't wonder why people wanna leverage up and credit spread.. minus commissions on a six dollar return.. you probably get NOTHING.
what i would do.. is just start searching and posting your findings and thoughts..
 
Pick a stock that pays a dividend.... if you can find one.
It will cut into your credit a little.
But it's a good back up plan, just in case the stock drops, and you end up owning it.
At least you can collect dividends while you wait for recovery.
Hopefully you can write covered calls while you wait as well.
The time to think about a back up plan, is BEFORE you need to think about a back up plan.
 
DNDN:

http://finance.yahoo.com/q/pr?s=DNDN+Profile

http://www.fool.com/investing/general/2012/12/11/are-the-shorts-wrong-about-dendreon.aspx
{I hope your hearing is better than mine}

http://finance.yahoo.com/q/ks?s=DNDN+Key+Statistics

http://investing.money.msn.com/investments/financial-statements?symbol=DNDN
{10 years of trying they never made a dollar}

http://finance.yahoo.com/q/bc?s=DNDN&t=5y&l=off&z=l&q=l&c=

Corp Offices:
250px-WaMucenter.JPG

32nd floor

Trade:

Sell the May 4.5 put for $69

If put you can sell the covered calls for about 30% annualized... presuming they haven't been sold or declared bnkrptcy.

Note: In order to make an intelligent investment in DNDN you have to know an awful lot about cancer chemotherapy.

Note: This is a biotech company working on novel methods for enhancing the effectiveness of cancer chemotherapy. They probably never intended to be profitable on their own but hope to be bought by a big pharma co. like JNJ.
 
Quote from oldnemesis:

DNDN:

http://finance.yahoo.com/q/pr?s=DNDN+Profile

http://www.fool.com/investing/general/2012/12/11/are-the-shorts-wrong-about-dendreon.aspx
{I hope your hearing is better than mine}

http://finance.yahoo.com/q/ks?s=DNDN+Key+Statistics

http://investing.money.msn.com/investments/financial-statements?symbol=DNDN
{10 years of trying they never made a dollar}

http://finance.yahoo.com/q/bc?s=DNDN&t=5y&l=off&z=l&q=l&c=

Corp Offices:
250px-WaMucenter.JPG

32nd floor

Trade:

Sell the May 4.5 put for $69

If put you can sell the covered calls for about 30% annualized... presuming they haven't been sold or declared bnkrptcy.

Note: In order to make an intelligent investment in DNDN you have to know an awful lot about cancer chemotherapy.

Note: This is a biotech company working on novel methods for enhancing the effectiveness of cancer chemotherapy. They probably never intended to be profitable on their own but hope to be bought by a big pharma co. like JNJ.
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i personally think chemotheropy is the equvaliant of snorting ajax as an lsd substitute... its so obtruse to our framework.. it kills more people then cures.. not to get all crazy but.. they will find another way.. the hiv virus ironically.. or stem cell organ growth
http://www.geek.com/articles/geek-p...od-cells-into-cancer-serial-killers-20110811/

http://www.nytimes.com/2012/09/16/h...n-tailor-made-organs.html?pagewanted=all&_r=0


welcome to the new age..... i can't say that company is good or bad.. i'm just talking...
 
atticus, tickmagnet, others who were positive instead of negative, I tip my hat to you successful traders...negative people are never successful, they undermine themselves

to OP: ZNGA is under $3, so you could sell two puts
GRPN is at about $5
both these stocks are being accumulated by the great Paul Tudor Jones
both these stocks have weekly options so you can be active weekly making income, including if you are assigned: sell covered calls
both these stocks have huge volume (ie, highly liquid) so you will not get burned with big gaps between the bid/ask
both these stocks look to be bottoming on the monthly chart, esp. GRPN

I have heard that Eoption has the lowest commissions for small accounts like $600, just $3 per trade plus 10 cents per option; but I would only place limit orders, not market orders ever. Use a live quote to sell the bid price at a limit order if you want to get filled right away.
 
Not that a negative attitude is every really justified... I just have a sensitive spot for that specific thing... my brother died of cancer.... are the fundimentals changing on znga.... I know if they legalized online gambling znga would be a bit of a lottery ticket


Quote from Bry:

atticus, tickmagnet, others who were positive instead of negative, I tip my hat to you successful traders...negative people are never successful, they undermine themselves

to OP: ZNGA is under $3, so you could sell two puts
GRPN is at about $5
both these stocks are being accumulated by the great Paul Tudor Jones
both these stocks have weekly options so you can be active weekly making income, including if you are assigned: sell covered calls
both these stocks have huge volume (ie, highly liquid) so you will not get burned with big gaps between the bid/ask
both these stocks look to be bottoming on the monthly chart, esp. GRPN

I have heard that Eoption has the lowest commissions for small accounts like $600, just $3 per trade plus 10 cents per option; but I would only place limit orders, not market orders ever. Use a live quote to sell the bid price at a limit order if you want to get filled right away.
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I thought you were one of the positive ones, cdcaveman. Sorry I didn't mention your name.
I don't pay attention to fundamentals, just the technicals, am in'n'out too quick to matter.
Quote from cdcaveman:

Not that a negative attitude is every really justified... I just have a sensitive spot for that specific thing... my brother died of cancer.... are the fundimentals changing on znga.... I know if they legalized online gambling znga would be a bit of a lottery ticket
More...
 
i just would bet jones is buying buy out opportunities.. cheap bets.. honestly.. buying a leap in this name might not be a bad idea.. tons of beat down built into those stocks.. i'm still holding 15 striked calls that have been worthless for A REALLY LONG TIME.. Znga.. i paid a grand.. i bought literally at the peak.. pre fb fluff up..
 
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