Want to ask all professional here, I've found some stocks which is high I.V. around 300%-400% but strike price in very low price below $10, I only here to sellput option to gain premium as passive income, regardless after a month the stock up or down, it will exercised or expiry, if exercised I might sell the stocks, is it a good way to go like this ? and I plan to do it in every month.

you want high iv ratio... ie, iv/av... not just high iv... this is very important when you screen n trade "random" stocks for best premiums...

you want good probability out of money so you don't get assigned... but too high prob means low premium... so pick something you comfortable with, say 60-70%

learn some ta/charting on support n resistance... gives you better idea on direction n picking strike price and expiry...

this way you can better balance your premium vs strike selection...

you wanna trade for long term, go slow n steady... this means find something reliable n consistent... do paper trading for a few months to practice n learn...

good luck...

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Just stumbled onto this option trading page. I just started options trading. A newbie. Ramjade, thanks for the invaluable advice you gave here. For the time being, I will do what you do, i.e. just sell call and put options. Maybe when I get better and more sophisticated, I look at buying and use those option strategies I read so often. 1 more thing that troubles me about option trading; the spread is quite wide. Also, I always join the queue at the ask price. Is that advisable? Next week, I shall sell a put option on IBIT. With that, I get to trade crypto currency using options.

This post has been edited by swiss228: Sep 7 2025, 02:51 PM

que when buying or selling single leg...

take when multi leg because your strat n safety depend on it...

Whatever float your boat. These rules work for me but may not work for you.

Only do options on things you are willing to be bag holder of

anyone do weekly CSP on etf?

TQQQ is highly leverage, am holding weekly on it, very scared, so will run away tonite.

other CSP ETF i have is GDX (gold etf) and CLE (energy etf).

i am thinking of KWEB (China tech etf) and IBIT(btc ETF).

i got uber CSP 30 days DTE, doing not good on premium. if hold until expiry, locked my BP and poor annualised return. newbie here

As a newbie to options trading, I feel the safest etf for options is one that mimics the S&P. So, for the 1st time, I am going to do a CSP (expiring in 2 weeks time) on SPLG. I join the queue on the ask side. One discouraging feature of options trading is the wide spread, which translate to higher trading costs. I am not used to this as spreads on stocks are much narrower.

in my humble opinion, SPLG not suitable for options, too low IV and do not have weekly expiry. so you want to roll also hard in future.

Thanks for the feedback. I may progress to more volatile stocks eg TSLA, NVDA sometime in the future but as a starter player in options, I don't want to risk too much. SPLG is already in my portfolio, so I can start doing covered calls already. I plan to do 2 weeks options time frame. Furthermore, as I am comfortable holding this ETF, I plan to do CSP on it as well. The wheel strategy looks like a pretty good strategy from the looks of it... haven't started spinning the wheel yet, but hopefully will be able to do soon. And, on the safe side, I will only join the queue on the bid/ask spread.

I found a stock/etf which may be appropriate for you. Consider SPY: they have daily DTE, from 0 to a few months, maybe even years. The spread is tight and the liquidity is the highest in the options market. Even if the volatility is low, the sheer size of 1 contract means you see daily profits or losses, assuming you trade the 0dte. Trade more than 1 contract, and you see your NAV fluctuates by the minute.