Hey Traders,
You know me — I love selling options and bringing in premium. That’s what I call premium income.
I’m an income trader at heart. I want steady setups that put cash in my account without needing to hit home runs.
And right now, premiums across the board are so high that it’s one of the best environments I’ve seen in years for selling options.
How I Create Income
As I’ve shared with you before, there are a few simple strategies I lean on over and over:
- Naked Puts — I’ll usually sell a strike 7–10% below the stock price, unless I really want to own the stock, then I’ll get closer.
- Credit Spreads — one of my weekly go-tos, letting me define risk while still collecting strong premium.
- Covered Calls — if I own at least 100 shares, I’ll sell a call above the current price and get paid while I wait.
All three are straightforward. You don’t need to own stock for a put or spread. You just need a plan and discipline.
Why Now Is So Good
Premiums are inflated right now. Volatility has jacked up option prices — and that means sellers are in the driver’s seat.
Whether it’s a naked put, a bull put spread, or a covered call, the odds are stacked in your favor if you’re on the sell side.
3 Stocks I’m Using Today
Here are three names I like best for premium income right now:
- IBIT (BlackRock Bitcoin ETF) — High beta means high volatility, and that translates to juicy option pricing. It’s affordable, too, making it easy to run naked puts, spreads, or covered calls without tying up huge amounts of capital.
- ANET (Arista Networks) — Trading around $140, this one’s been trending strong and works well for just about any income strategy you want to throw at it.
- HOOD (Robinhood) — A name with plenty of liquidity, solid movement, and great premiums for both puts and calls.
Full disclosure: I’m long all three of these right now.
Bottom Line
Income trading doesn’t have to be complicated. Pick the right strategies, stick to stocks that give you volatility and liquidity, and let the premiums do the work.
IBIT, ANET, and HOOD are three of my top choices in this environment — and all of them are prime candidates for selling options today.
Trade well,
Jack Carter
P.S. Don’t let the “September tech crash” blindside you… here’s what you need to know.
