Buying Options is Mostly Gambling for Me

Options give the put buyer the right to sell a stock at specific price or call buyer the right to buy a stock at a specific price.   

While buying a put is "insurance" for shares that are owned if there is a decline, buying naked put option or call options is often gambling on the price of the stock, especially if they are short term options, i.e. less that a month from expiration.

I admit I like to buy call and put options, but generally for longer term around 6-11 months from expiration.  I often buy options that expire in January of the next year.  For me, options are mostly gambling on the price change.  2021 was a great year in options for me.   2024 was poor year, with mostly losses.   2025 was a mixed year.  Some options had up to 7000% gains and others expired worthless. 

2026 started out poorly since all my January 2026 options expired worthless.  Since 2025 had some bad option purchases, I decided to be less aggressive in 2026 and purchase much fewer options that were also lower in price.  Right now my January 2027 expiration options on BB and SLS are returning XX% and XX% respectively.  My SNDL and EVGO call and SPY put January expiration options are breakeven at this point.

All these options are just lotto tickets that I can deduct for taxes if they become worthless. I'm going to hodl these to Valhalla or zero.  Hopefully, it's Valhalla.   If it's zero, unlike lotto ticket, I can write off the losses on my tax return.

For more on The Practice of Personal Finance, check back every Wednesday for a new segment.

This is not financial, option, nor investment advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC