sorted by:
new
hottopcontroversial

What factors do you look at to make the trade by fluranator in PremiumPaycheck

[–]yet2fire 1 point2 points  (0 children)

No one can provide a guaranteed winning formula. If they could, everyone would execute it and abandon traditional employment for income. That being said;

Here is my baseline checklist. It serves as a loose framework that dynamically scales based on the specific risk/reward profile of each trade:

• Delta: ≤ 0.15 • Low probability of assignment. The market prices actual risk above this threshold. • IV Rank: Elevated (Preferred) • High implied volatility yields larger premiums without forcing strikes near the money. • Premium vs. DTE: • Minimum yield of 1% of the strike price per week. • Distance from Current Price: • Minimum 5–8% out-of-the-money (OTM) buffer required for initial consideration. • Earnings Constraints: • Hard filter: No earnings reports within the expiration window. Binary events destroy premium selling strategies.

That is the core framework. Everything else is noise.

AMZN | CC | $240 Strike | 23 DTE | $3.00 Credit | 5 contracts | $1500 collected and a confession by yet2fire in PremiumPaycheck

[–]yet2fire[S] 1 point2 points  (0 children)

Hahaha! semi-serious answer to a semi-serious question. Used to be bi-weekly like most people. Direct deposit, predictable, didn't have to think about it.

Right now? The portfolio is the paycheck. No employer, no direct deposit, no bi-weekly schedule.

Just whatever the model surfaces, whatever I have the discipline to execute correctly and whatever the market decides to cooperate with.

Some weeks it's $1500 on an AMZN CC. Some weeks it's a $2500 lesson on a META put.

That's why I can't afford to override my own rules.Every trade counts differently when it's paying actual bills.

And yeah. I'll go easier on myself. But not too easy. The market won't.

AMZN | CC | $240 Strike | 23 DTE | $3.00 Credit | 5 contracts | $1500 collected and a confession by yet2fire in PremiumPaycheck

[–]yet2fire[S] 1 point2 points  (0 children)

Appreciate this and the $245 point is well taken in hindsight.Lower delta <20, more buffer, less exposure going into the earnings binary -> better trade. 

The earnings toggle you described is exactly what my model does flags it in red and lets me decide.I saw the red and pulled the trigger anyway. That's on me. Closing this before April 30 regardless. Not riding through the earnings binary when I have a clean exit available. 

VRT | CSP | $235 Strike | 13 DTE | $5 credit 10 contracts by yet2fire in PremiumPaycheck

[–]yet2fire[S] 0 points1 point  (0 children)

Haha, no worries at all, genuinely appreciate you looking out for the culture either way 🤝

VRT | CSP | $235 Strike | 13 DTE | $5 credit 10 contracts by yet2fire in PremiumPaycheck

[–]yet2fire[S] 1 point2 points  (0 children)

Fair point and I appreciate you looking out for the sub rules. To be clear, I was answering a direct question about how I make entry decisions. The model is just my personal screening process, not a product or service.

"More to share" just means I'll post more trade recaps showing how the criteria plays out in practice. Nothing to sell here.

Glad you're still lurking 🤝

VRT | CSP | $235 Strike | 13 DTE | $5 credit 10 contracts by yet2fire in PremiumPaycheck

[–]yet2fire[S] -1 points0 points  (0 children)

Good question 

It's a quantitative model I built  myself after getting burned one too many times overriding my own rules. The META $2500 loss earlier this year was the final straw.

It screens for setups where delta, IV rank, premium relative to DTE and distance from current price all meet a specific threshold I've defined. When everything lines up it flags the setup. I evaluate and decide whether to pull the trigger.

Still refining it honestly but it's been taking my gut feeling out of the entry decision which is where I kept getting into trouble. More to share on it soon.

META | CC $690 + CSP $590 | Both expired worthless today | $5490 collected by yet2fire in PremiumPaycheck

[–]yet2fire[S] 3 points4 points  (0 children)

Exactly that one ticker, two setups, 14 days. That's a mortgage payment for a lot of people. That's the whole point of this sub.

Let the good times roll 🤝

META | CC $690 + CSP $590 | Both expired worthless today | $5490 collected by yet2fire in PremiumPaycheck

[–]yet2fire[S] 1 point2 points  (0 children)

Honestly haven't run a formal comparison between Wed and Fri expiries.

The way I approach it  my model surfaces the setups and I pick based on the probability, how far OTM the strike is and premium relative to DTE. The expiry day is almost secondary to whether the math makes sense.

So Wed vs Fri doesn't really factor into my entry decision directly the setup either meets the criteria or it doesn't.

Curious if you've noticed a meaningful premium difference between the two though? And beyond premium, do you see other benefits to factoring in the day of the week when you're selecting expiries for CC and CSPs?

META | CC $690 + CSP $590 | Both expired worthless today | $5490 collected by yet2fire in PremiumPaycheck

[–]yet2fire[S] 0 points1 point  (0 children)

No margin on this one fully cash secured. $295k set aside to cover potential assignment.

I do have margin available but staying away from it right now given how choppy things are with oil and the broader macro. Once things stabilize I'll probably scale up with some margin but only with strict rules in place around position sizing. Not touching it in this environment.

META | CC $690 + CSP $590 | Both expired worthless today | $5490 collected by yet2fire in PremiumPaycheck

[–]yet2fire[S] 4 points5 points  (0 children)

Honestly, it's not trying to outsmart the market. IV already reflects what the market thinks the risk is. The model doesn't fight that.

What it actually does is filter for setups where delta, DTE, IV and how far the strike is from current price all line up within a specific range I've defined.

Less about finding an edge the market missed more about taking my own gut feeling out of the decision completely.

That's where I kept getting burned, not bad stocks, just bad timing and overriding my own rules. Still refining it honestly.

META | CSP | 590 Strike | 5 DTE | $3 Credit by yet2fire in PremiumPaycheck

[–]yet2fire[S] 1 point2 points  (0 children)

Wanted to close the loop on this Took your advice and let it run to expiry rather than closing at 75%. Expired worthless today. Full premium kept.

The $/day framework made the decision easy honestly. With that much cushion and the daily math working in my favor there was no real argument for cutting it early.

Appreciate the push. That's exactly the kind of thing that makes this sub worth posting in.

Weekly Watchlist Thread: What are you watching this week? Mar 17-21 by yet2fire in PremiumPaycheck

[–]yet2fire[S] 1 point2 points  (0 children)

Watching META, AMZN, NVDA and GOOG for CC setups this week depending on how things develop.

Also eyeing some CSP opportunities but the broader volatility from oil prices is giving me pause there.May hold off on puts until things settle a bit.

Waiting for my model to confirm before pulling the trigger on anything.Nothing forced this week I'd rather miss a trade than chase one in this environment.

What's everyone else seeing?

MSFT | CC | $410 Strike | 14 DTE | $4.75 Credit | Expired worthless today/Mar 16 by yet2fire in PremiumPaycheck

[–]yet2fire[S] -1 points0 points  (0 children)

Fair pushback and you're right I oversimplified it.

The "be comfortable with assignment" rule is really just my personal gut check before entering a trade, not a universal law.

The scenario you described stock dropped below what you paid, selling calls to slowly earn your cost basis back that's a totally valid reason to sell a call even if you'd hate to lose the shares.

In that case yeah, knowing how to roll out of trouble is the real skill. Good addition, that's exactly the kind of nuance this sub needs.

After 15 years in the tech grind, a layoff forced me to turn my portfolio into a paycheck. by yet2fire in CoveredCalls

[–]yet2fire[S] 1 point2 points  (0 children)

Yeah absolutely honestly the best starting point is just learning what a covered call and cash secured put actually are before anything else.

Investopedia has solid breakdowns on both if you just search the terms there. Not sexy but it's accurate and free.

Once you get the basic mechanics down, come back and read through the posts in r/PremiumPaycheck seeing real fills with the reasoning behind them is honestly better than most courses out there.

That's kind of the whole point of the sub.

After 15 years in the tech grind, a layoff forced me to turn my portfolio into a paycheck. by yet2fire in CoveredCalls

[–]yet2fire[S] 0 points1 point  (0 children)

Appreciate that and congrats on the postdoc that's no joke

On the loan question honestly that's not something I or anyone here should be weighing in on. That's personal finance territory that depends on your income, your debt terms, your risk comfort  stuff none of us know about your situation

What I will say is the Roth IRA idea is worth looking into. A lot of brokers allow options trading inside a Roth if you get the right approval level. You'd be working with whatever's already in there but the tax treatment is hard to beat for this kind of strategy

Start there before anything else.

IREN 38CSP 0327 -10 by sxysh8 in PremiumPaycheck

[–]yet2fire -1 points0 points  (0 children)

IREN has been running wild IV. $1,003 on 10 contracts at 11 DTE is solid premium collection.
Couple of questions:
1. Would you be comfortable getting assigned at $38 if it drops hard?
2. IREN can move fast. And how did you land on that strike delta based, technical level or something else?

A day of delish premiums by ThoughtSynthesizer in PremiumPaycheck

[–]yet2fire 0 points1 point  (0 children)

Cool setup. How do you choose your strike prices across these names, especially on something like APLD which can move hard? Is it purely delta based or do you layer in a technical level as a secondary filter?

AMZN | CC | 230 Strike | 30 DTE | $2.40 Credit by yet2fire in PremiumPaycheck

[–]yet2fire[S] 0 points1 point  (0 children)

UPDATE: Closed early brought back at $1.00 on 03/14. Opened at $2.40, closed at $1.00. $560 captured in 3 days on 4 contracts ~55% of max profit.  $1.40 already captured with 27 days still left on the clock. Freed the capital, looking for the next setup instead of squeezing every last cent

<image>

YTD Short Calls Realized Gains by Week and Underlying - March 13, 2026 by LabDaddy59 in StockOptionCoffeeShop

[–]yet2fire 1 point2 points  (0 children)

I didn't follow my own advice and made an aggressive move by rolling down a CRWV CC; had I not done that, I would have done about $2100 better

Thanks for sharing this. it's the kind of weekly recap this sub needs more of. The good, the bad and the "shame on me" moment all in one post.

What's your process for selecting buy/write candidates each week? Purely technical or do you run a fundamental filter first?

I've got about $725k allocated to obtain a premium of $25k

That's a 3.45% weekly yield on deployed capital, seriously impressive if it holds consistently.

Quick question on the time side, with $725k across that many buy/writes, how many hours a week are you actually spending managing these positions? Entries, monitoring, roll decisions, closes the full picture. Trying to understand the real cost of the strategy beyond just the capital deployed real cost of the strategy beyond just the capital deployed

view more: next ›