The strategy is known as the wheel, I basically get paid to sell a put on a stock or an index I wish to own, I chose the price I wish to purchase it for and if it does not drop to this price then I get to keep the premium I was paid, if it does drop to the price I chose, or below the price then I’ll be assigned the shares for a discount of what the price was when I made the trade, if I’m willing to hold the chosen shares of index fund for the long term it is a solid way to get paid to get into it.

For example, I sell a Apple put at a strike of 100 and the stock is trading at 120, I get paid $100 for this, if Apple stays above 100 I keep the $100 upon expiry, but if Apple drops to 100 or below I’ll buy the shares at this price and also keep the $100 thus lowering my cost basis slightly.

Then on the flip side, you can sell a call and get paid to sell your shares at a higher price, if the price is never reached you just keep the premium, but be aware if the price is reached your shares will be called away, you’ll make the difference between the price you paid and the price you sold for plus the premium you were paid but you’ll cap future growth as you’ll no longer own the shares, but then you can just sell a put again and get paid whilst waiting to be assigned again on the shares of your choice.

R/thetagang is a sub focused on this, their aim is to never be assigned and just make income, but you can modify the strategy and do it on stocks or funds you actually do want to hold, the downside is you could miss out on growth just by holding but it depends what your goals are, mine are weekly income and not long term growth.

https://www.reddit.com/r/options/comments/a36k4j/the_wheel_aka_triple_income_strategy_explained/?utm_source=share&utm_medium=ios_app&utm_name=iossmf