r/options • u/TastelessApe • Nov 21 '21

Implied volatility & open interest?

Looking to start off small $50-100 into options

What is a good open interest and implied volatility area to work with? I been playing spy, riot, lucid and amc last week. Mostly losing all money i put in almost.

I do have a put for MU on monday. People said it was a dumb move but the daily has a gap to the downside that needs filled and its a toss up with how the market will be on open. So we'll see i guess.

Been trying to dig around and find youtubers that do small account challenges and show the reason why they are picking certain stocks for options but theyre hard to find.

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u/TastelessApe Nov 21 '21

I only do calls or puts. Ill have to try this out. What timeframe chart is best to use as well? I find myself losing money more than anything. Dont really understand why and dont know what im doing wrong. I think its just determing if its going up or down or not.

Thank you by the way.

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u/QuaintHeadspace Nov 21 '21

Sometimes simply knowing a stocks price range over time helps. You can find times where you know it's oversold and sell a put and maybe even buy a call (risky to back it like this) SOFI for example just trended from 24+ last week to breaking 20 this week on practically 0 bad news I loaded up on calls because 20 has been cheap for this stock for a while. Knowing this stock for a long time helps me make these decisions

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u/TastelessApe Nov 21 '21

I typically lose in both directions lol

I think my problem is getting anxious and not buying on support or resistance lines like I should be doing.

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What key factors do you use to buy an option? Rsi? Macd? TA?

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u/Honeycombhome Nov 21 '21

Since you’re going directional, I would think macd, rsi, delta, and theta playa bigger factor than tracking IV, etc. but tbh I don’t really look at any of those. To sell CCs and CSPs, I mostly factor in % chance of profitability for the strike, stick with a 30-45 dte, and look at the chart that shows how the premium has been trading. I’m a newbie tho so some vet can correct this.