The $125 Promise: Why I Stopped Trading and Started Getting Paid

You know what changed everything for me when it came to selling puts?

The day I stopped thinking about it as trading and started thinking about it as getting paid for making a promise.

That’s really all it is.

When you sell a put, you’re not gambling on direction, and you’re not trying to be a hero. You’re saying, “I’m going to get $125 today for making a promise today,” and the promise is simple: If the stock falls to a certain price, I’ll buy it there.

Here’s the part most people overlook: Premium collection doesn’t just pay you upfront, it lowers your cost basis on any shares you might end up buying.

You get paid to wait for stocks you already want to own, and in most businesses, you pay for inventory first and hope revenue shows up later. This is the only business I know where the revenue comes in before you ever take on the inventory.

Sounds like a great business proposition to me.

2 Outcomes, No Surprises

Once you’ve sold that put and collected your premium, the stress is over because you’ve already been paid.

Now you just wait.

You have one of two outcomes: You’ve either been put to stock or you haven’t.

If you haven’t been assigned, great — you keep the premium and move on to the next trade. If you have been assigned, even better — because you’re buying the stock at a price you already decided you were happy with, discounted even further by the premium you collected.

That’s the beauty of treating this like a business. The income shows up first, and the potential obligation comes later — and only at a price you hand-picked.

The Framework I Use Every Time

This isn’t complicated, but it does require discipline.

You plug any stock into this framework, and those are the general principles you’re going to follow: Find a stock trading at a certain price, decide what price you’d be happy to own it at, then sell a put at that strike for whatever expiration you’re comfortable with.

You get paid upfront, and that money is guaranteed to hit your account.

What makes the process even stronger is how flexible it is. There’s no single rigid way to run this strategy, and you can adjust it based on volatility, stock selection, or how aggressively you want to harvest income.

Then you wait. No chasing, no second-guessing, no hoping.

You made a promise, you got paid for it, and now you let the market decide whether it wants to take you up on that promise or not.

That’s the business. That’s how I’ve been doing this since the 80s, and that’s why I keep coming back to it — because it sounds like a great way to make money.

Trade well,

Jack Carter
Jack Carter Trading 

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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk. 

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Disclaimer: We develop tools and strategies to the best of our ability, but we can’t guarantee the future. There is always a risk of loss when trading. Past performance is not indicative of future results. On live trades, the result is a 78% win rate from 4/05/23 through 2/20/26, with an average return per trade (winners and losers included) of 19.88%, a 6-day average hold time, and an average winner of 52.76%.

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