How To Make $250k Selling Options

I have made $255,630 selling options over the last 2 years. This is the simple yet effective strategy I use:

Covered Calls & Cash Secured Puts

The two strategies I use are Covered Calls & Cash Secured Puts. This thread focuses on Covered calls: Selling calls gives you the right to sell your shares at a certain price. While doing so, you collect a premium. This is how I am making $1000s of income every month.

This is a basic overview of how the covered calls process works:

1. Own 100 shares

2. Sell a Call

3. Collect Premium

4. Wait for Expiration

5. Close contract

Let’s break it down even more…

Own The Shares

To deploy this strategy, you must own 100+ shares of the stock/ETF. This is where the barrier to entry is. For instance, 100 shares of $MARA will cost you ~$1,631. 100 shares of $AMZN will cost you ~$18,600. & 100 shares of $QQQ will cost you ~$48,700.

Sell A Call

Now you own the 100 shares, you can write calls against those shares.

Ideally when you sell a call, you want the share price to stay BELOW the strike price at expiration. If the share price is ABOVE strike price, you are required to sell shares at strike.

If we take $COIN for example, the current share price is $170. To sell a call, you go to the options chain & select “sell” “call”. From there, you can choose the strike price & expiration. Ex. Strike: $187.5, Expiration 10/11 NFA. This is just an example.

Collect Premium

In this example, the Delta is .16 & the premium is $1.32 This means you will get paid $1.32 a share in premium. Remember, options are in lots of 100 shares, so you will collect $132 in income for the week.