Hey traders,
If Friday rattled you and today felt like whiplash, you’re not alone.
Here’s how I think about it: panic is a condition, not a signal. I don’t trade the headlines — I trade the setup that panic leaves behind.
Friday gave us fear. Today gave us a bounce. My job is the same on both days: line up high-probability income trades and let time decay do the heavy lifting.
What changed from Friday to Monday
Friday: screens were red, premiums were pumped, everybody was refreshing their page in a mad panic.
That’s when I’m most interested in selling puts — but only on names I’m happy to own if I get assigned. Fear juices those puts up — gives them extra premium — and I’m fine stepping in where others won’t.
Monday (today): green across the board. That doesn’t mean I chase. It means I look at what fear left behind — where the premiums are still generous, where my levels give me cushion, and where I can structure next-week income without needing heroics.
The checklist is simple:
- Trend first. I want an uptrend or at least higher lows on the names I sell puts on.
- Liquidity next. Tight spreads mean better fills and easier exits.
- Strikes I can live with. If assignment happens, I want to own it there and immediately flip to covered calls.
TSLL: why I’m still pressing the “cheaper Tesla” angle
You’ve heard me talk about TSLL (the 1.5–2× Tesla bull ETF). I sold the 20-strike puts for about $2 and, so far, haven’t been “gifted” the shares.
That’s fine — I was paid up front for taking the risk, and if I do get assigned, my effective cost basis is lower and I can turn around and sell covered calls the next morning.
Two clarifications I want you to hear:
- I use TSLL as a position tool, not a lottery ticket. The leverage gives me more premium for the distance, but I size it smaller than I would TSLA to account for the extra “juice.”
- I think in ladders. If I like the setup, I don’t dump my full risk at one strike/date. I’ll stage entries — same ticker, staggered expirations/strikes — so I’m not hostage to one print or one headline.
If I don’t get assigned this week? Great. I keep the premium and roll the idea forward to the next clean window.
IBIT: why I’m adding another put (and how I pick the strike)
I still hold a 63-strike naked put on IBIT (Bitcoin ETF), and I’m looking to add another
The why is straightforward: Bitcoin’s tape is jumpy, premiums stay rich, and my line in the sand is a level I’m genuinely willing to own. If price never gets there, time pays me. If it does, I own the ETF at a discount and start writing calls against the shares.
Here’s the “how” I use that I haven’t spelled out in a while:
- Pick the floor you trust, then sell under it. If I see buyers show up multiple times in a zone, I want my short put below that zone so I’ve got cushion and a higher chance of expiring worthless.
- Let yield compete with distance. I don’t automatically take the fattest yield. I weigh it against how far OTM (out-of-the-money) I can sit and still get paid. A slightly smaller credit with much better distance often wins.
- Know your Saturday. Assignment notices can land late (up to 11:59 pm Saturday). Decide your plan before Friday’s close so you’re not guessing all weekend.
The bigger point
Friday’s fear and Monday’s relief are just two sides of the same coin: emotion. I’m not here to predict which emotion wins by Friday — I’m here to get paid by both.
- Red day in an uptrend? I price naked (cash-secured) puts first.
- Big run after the open? I look to sell covered calls on shares I already own.
- Unsure? I wait. There’s always another pitch.
You don’t need to trade the news cycle. You need a process you can run every week, no matter what the headlines say.
Trade well,
Jack Carter
P.S. High-frequency trading at its finest: This is how anyone can target up to 3 payouts per day.
