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.

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

Copyright © 2026 Achievement Catalyst, LLC

Diamond Handing my Winners

I'm notorious for selling my gains at 15% to lock in profits.   Recently, I decided to hodl my winners:  BB, NOK,  SLS, MU, and STX.   I kept these even when they went down, but eventually recovered. Now I've decided to diamond hand these stocks.  

Ahh, maybe I can get a 10000% gain for the first time ever.  Hopium thinking on my part.  We shall see.

Disclosure: I own shares of BB, NOK, SLS, MU and STX.  I own call options for BB and SLS

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

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

Copyright © 2026 Achievement Catalyst, LLC

Profiting from Wall Street Bets Meme Stocks

On February 2, 2021, I posted that I was Regretting Buying Bubble Stocks.  I was already down 25-50% on my purchases.  On March 25, 2021, I posted that I was having Wall Street Bets Fun buying meme stock and trading calls and puts on the same meme stocks.  I was breaking even to slightly positive at the time of that post.

Based on my experience, I decided to focus mainly on options, calls and puts, for some of the meme stocks.  Specifically, AMC, EXPR, BB, BNGO, SNDL and NOK.   I also bought some calls on WKHS, although it wasn't a meme stock at the time.   I watched the main discussion the Wall Street Bets Reddit thread for mentions of the named stocks.   As the mentions increase, I bought and sold calls and sold puts.

To note, I usually did not risk much more that the price of a lottery ticket.   In many cases  $5; sometimes $10 to $25, occasionally about $60; but never, not yet, over $100.   In about 90% of the cases I made a profit, up to 2000% in one case.   Most of the ones that expired worthless were profitable at one point, but I got greedy and didn't close the position, and watched to position go to zero.

Here's my key learning from the January and March meme stock spikes.   Avoid buying when the stocks are rocketing upwards.  Buying during significant up trends tends to cause me to buy high.   In most cases, wait until after a clear peak and significant decline.   Buying at this point, even before the eventual bottom, will lead to profits sooner at the next spike.

Another important learning:  Don't be greedy.   In my first attempt at meme options (SKT), the option went up 1500-2500% in one day.   I decided to wait for more gains, since this was right after the first GME spike.   The gains dropped, I kept waiting, and the gains dropped more.   Eventually, the option went to zero for a loss.

Finally, I only risk a very small part of our portfolio on options, usually no more than $200, or $2000 in the case of short puts, which would cause me to buy 100 shares of the stock if executed.

I've closed out most of my options, including an AMC $20 covered call which was executed last Friday, when the stock was $48.  I have couple long calls and short puts remaining and hope to close out some this week.

Disclosure:  At the time of this post, I own shares of EXPR, BB, BNGO, SNDL, NOK and WKHS.   I am long calls on BNGO and NOK.   I am short puts on BNGO and SNDL.   AMC was called away with a $20 covered call.  This week,  I may buy or sell calls on WKHS or sell WKHS shares.   This week,  I may sell current call positions on BNGO, and NOK.

For more on New Beginnings, check back Sundays for a new segment.

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

Copyright © 2021 Achievement Catalyst, LLC