Hey Traders,
If you’ve followed me for any length of time, you know I’m all about income trading.
I’m not looking to swing for the fences or guess which stock is going to double next year. I want consistent, steady cash flow — money that hits my account up front, week after week.
And this morning, I placed a trade in IBIT (BlackRock’s Bitcoin ETF) that shows exactly how I do it.
Why IBIT Caught My Eye
IBIT has been one of my favorite names lately.
It moves enough to give me strong option premiums… it’s liquid, which means tight bid/ask spreads… and at around $66 a share, it’s affordable enough that I don’t have to tie up a massive amount of capital to trade it.
That combination — volatility, liquidity, and affordability — makes it perfect for income setups.
The Trade I Placed
Here’s what I did this morning:
- IBIT was trading around $66.83.
- I sold the October 24 $63 naked put.
- For that, I collected $1.31 per contract — and since each contract controls 100 shares, that’s $131 cash in my account right away.
That’s the key: I don’t have to wait to see if I’m right. I get paid up front.
How the Math Works
So what happens next?
- If IBIT stays above $63 through expiration, that option expires worthless and I keep the $131. Then I just look to sell the next one.
- If IBIT dips below $63 and I get assigned the shares, no problem. My effective entry price is $61.69 (that’s $63 minus the $1.31 I already collected).
At that point, I’d just switch gears and start selling covered calls against the shares — bringing in even more premium until the stock rebounds.
Either way, I’m getting paid.
What the Returns Look Like
On a margin basis, this trade is about a 12% return for the capital tied up.
If you’re running it cash-secured, you’d need about $6,300 in the account to back one contract. That makes it a solid, straightforward income trade for smaller accounts too.
Why I Love This Setup
This is the beauty of selling options:
- I don’t need IBIT to soar higher.
- I don’t need to guess the next Bitcoin headline.
- I just need IBIT not to collapse — and I’ve already built in cushion by selling a strike below the current price.
I’m pulling in monthly cash flow without trying to predict every wiggle in the market. And if I do get assigned, I’ve already lowered my cost basis and set myself up for more income with covered calls.
Bottom Line
That’s how I trade for steady cash flow.
IBIT is one of the best tickers out there right now for income setups, and this naked put is a perfect example.
Collect premium. Lower your cost basis. Rinse and repeat.
That’s the system that keeps me consistent — and it’s how I turn even a choppy market into reliable income.
Trade well,
Jack Carter
P.S. This tool scans 100,000+ options contracts daily and flags ONLY the top setups in real time.
