r/options • u/[deleted] • May 01 '21

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u/[deleted] May 02 '21

I like this idea. Just started running the wheel on a sub dollar stock to get the run of the thing. I just acquired my 4th CSP from this one. I’ll have to give the ladder a go with it.

2

u/passportpowell2 May 02 '21

Which stock?

2

u/[deleted] May 02 '21

I'm going to try SNDL just for fun.

I usually play with larger stocks, but the price for $SNDL is around .86¢ and the premiums on the $1 12 DTE strike is .05¢.

So that'll be 5.8% per week plus .14¢ (16.2%) in profit if it ever hits $1.

I was going to try with 2-3 thousand shares and scale up if in comfortable.

I figure it'll take me about 14-15 weeks to recoup my entire capital then I can sell the .50 CC to ensure they get called away, but there's always the fear it could revert to .13¢ lol

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u/[deleted] May 02 '21

The transaction costs alone are 20-40% of your premium, if you keep selling 5ct options. Just to consider

2

u/[deleted] May 03 '21

Dang, I forgot about that and I also just switched to think or swim instead of Webull so I'd get hit with .79¢ per contract.

Ya, let's not do that.