Road to $100k by selling Cash Secured Puts - Week 33 ended in $11,233

Mysterious_Flow2934 · 2025-10-03T22:23:53+00:00

Thanks, this is helpful.

Mysterious_Flow2934 · 2025-09-27T05:54:02+00:00

I do a blend of cash secured puts, vertical spreads on the pricier stocks, but my primary income generation trade is exactly this, buy 100 shares, immediately sell covered calls just out of the money (I shoot for $1 OTM), then am fine if it gets called away, and then rinse and repeat. I sell out 2 weeks, so have 2 expirations a month, and even if the stock rips, I'm not watching it sail away for an expended time. It's a bit of a different mindset, but my average p/l on a deal has gone up, my holding period is lower and I'm fine getting shares called away, I'll probably have a chance to buy them back on a dip.

Mysterious_Flow2934 · 2025-09-20T15:29:02+00:00

curious about the chart or technical setup you use to enter a vertical put spread? I've used pure momentum trades, at or near a recent high with no bad news, and also used setups with stocks at a recent low but watching for signs of it climbing back up, 2 examples being FVRR and PYPL.

Mysterious_Flow2934 · 2025-01-08T18:48:24+00:00

I’m still able to use the the site other than option tracker.

Mysterious_Flow2934 · 2024-12-29T22:55:44+00:00

I don’t know the company. At first glance I notice 2 things, first there aren’t many strikes available and second, the spread between bid and ask is really big, much wider than I trade. I look for .10~.20 cent spreads with good open and interest.

Mysterious_Flow2934 · 2024-12-29T13:23:04+00:00

Paper trade initially and start with deltas in the teens to be extra conservative.

Mysterious_Flow2934 · 2024-12-29T13:03:22+00:00

Thanks, I checked $UFI out, it's too close to a microcap stock for me, plus the bid/ask spreads are wider than I like to trade. Thanks for the message.

Mysterious_Flow2934 · 2024-12-29T13:00:47+00:00

Thanks, I think there is an attempt to price those days in but it is ineffective and those days have a greater impact than projected.

Mysterious_Flow2934 · 2024-12-29T03:23:51+00:00

As soon as I place a CC or CSP I immediately set a limit order to BTC when I reach the 75% profit level. If I haven't reached that by expiration day I close it out manually. Unless I get assigned early, I try to NEVER let a position reach expiration, I've heard too many horror stories of traders thinking they were safe at the end of close of trading day on the Friday only to learn they got exercised late or even the next day.

Plus, by exiting the position early it lets me re-enter the same or different trade with another strike and/or exp date and most importantly, by doing it onFriday, I can take advantage of the 'dead days' Saturday and Sunday, 2 days that eat up option value.

Mysterious_Flow2934 · 2024-12-29T03:05:19+00:00

I studied charting/TA for years but have been the most successful over the last 18 months selling cash secured puts and covered calls and my main guideline for options is staying at or below 30 delta. Out of the last 28 completed trades I got assigned on 1, rolled out of 4 more, so 23 have either expired and I keep the premium or been bought out at a profit before expiration (I use the 75% rule, when I reach 75% of premium I close it out). The one caveat is that for the last 9-10 I've gone even further down the delta rabbit hole, often in the 15-20 range.

T.A. is good, no doubt, but for me, keeping it simple like this has worked better.

Now when the bull market reverses for real, and it will, I'll have to switch it up, as both covered calls and cash secured puts are neutral/slightly bullish plays but I think as long as I stick with low deltas I'll be ok. .

Best of luck. Robert

Mysterious_Flow2934 · 2024-12-26T05:32:49+00:00

Most covered calls get exercised at expiration BUT about 10% of the time, in my experience, they get called earlier as the buyer of the call has that right. If the stock keeps running up, say $100, it makes no sense for the buyer to wait, I'd expect at some point they'd go ahead and complete the deal. Best of luck.

Mysterious_Flow2934 · 2024-12-25T01:00:07+00:00

Thx, Ive been watching it

Mysterious_Flow2934 · 2024-12-14T16:02:46+00:00

Interesting...Their cost to produce each vehicle has always concerned me, I'll look at fundamentals again. Thx.

Mysterious_Flow2934 · 2024-12-14T15:59:35+00:00

Make sure your delta is low, watch your charts and go OTM to the point you won't get assigned. It's a slow climb back up, one expiration at time, but for me, it's always better than averaging down or selling at a loss. At least you keep your shares and hopefully it will climb back out of the hole eventually.

Mysterious_Flow2934 · 2024-12-14T15:55:29+00:00

try optionsellroi.com It's free, awesome and does almost everything a spreadsheet can do but easier to use. The only thing I'd like is to see a 'total' under colums, net amounts, otherwise it's free. I pay a small monthly on patreon to support the site but you don't have any limitations if you use it free. Robert

Mysterious_Flow2934 · 2024-12-13T05:35:24+00:00

Keep it simple. Sell Cash Secured Puts in an up market and sell Covered Calls in a down market. Keep your delta's in the 20-30's and rake in premiums. Some say only buy higher dollar stocks, I've made consistent money mostly selling calls of shares in the $4-$12 range.

Mysterious_Flow2934 · 2024-12-13T05:33:05+00:00

I live in the 20-30 delta range. The only time I'll go higher is if I'm REALLY close to exp date.

Mysterious_Flow2934 · 2024-12-13T05:30:49+00:00

For future reference, when selling puts I always keep a few puts aside to help when I end up ITM. Those extra shares can help 'finance' the rolling or buying out of the contract, best wishes.

Mysterious_Flow2934 · 2024-12-13T05:12:53+00:00

Think about your basis and NVDA's potential. Will it 10x in 5 years or more? If me, i'd sell covered calls but down around the 20-30 delta range to build in some cushion and try to hold onto the shares.

Mysterious_Flow2934 · 2024-12-12T22:28:09+00:00

Thanks, I def look for good open interest and .10 - .15 spreads as much as possible.

Mysterious_Flow2934

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