What To Do After You Unlock the Power of Selling Options

Hey traders,

If you read yesterday’s post, you might have already started the simple exercise I shared with you. You know, the one that shows you how time decay eats away at an option’s value.

If you haven’t started yet, don’t worry. You can start whenever you’re ready — but don’t wait too long.

Because this exercise is the key to unlocking that “brain shift” you need to understand why selling options is one of the most powerful trading and investing techniques out there.

Now, let’s say you’re in the middle of the exercise. You’re watching that option slowly lose value day by day. And let’s say that by next week, it finally clicks. You realize the power of selling options.

What’s Next?

I’ve talked about this before. Once you see time decay working in your favor, you’ll want to start using strategies that let you sell options and watch that value melt away.

Let’s go over a few:

  1. Covered Calls – This is a great place to start. You sell a call option on a stock you already own, and you collect a premium upfront. As long as the stock doesn’t shoot up past the strike price by expiration, you get to keep the premium. Even if it does, you still walk away with a profit.
  2. Naked Puts – This one’s a bit riskier but can be just as effective. You sell a put option on a stock you’d be willing to buy at a lower price. If the stock drops to that price, you’re obligated to buy it, but you’ve already collected the premium upfront. If it doesn’t, you pocket the premium as pure profit.
  3. Spreads – This is the bread and butter of my flagship strategy, Weekly Options Profits. By selling one option and buying another to create a spread, you limit your risk while still collecting premium. It’s the strategy that I use week after week to target those consistent 5% gains.

If you want to dig deeper into these strategies and see a full comparison of the pros and cons, check out this article.

Ready to Get Started?

If you’re doing that exercise I mentioned yesterday, you’re already on the right path. You’re seeing firsthand why selling options can be such a game-changer.

If you’re ready to take the next step and start using strategies like the ones I just mentioned — dive into it. You can even paper trade the strategy, which I highly recommend if you’re just getting started.

But if you want to dive in and feel like you could use some guidance — I’ve got you covered.

In Weekly Options Profits, we sell weekly spreads. I give you the ticker and the full options info. It’s perfect if you’re just getting started and need some guardrails. Click here to check it out.

Trade well,

Jack Carter

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