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We’ll share the report with today’s top Income Harvester trades, break down our personal setups, discuss what’s moving markets and more [tap to join us for Market Masters]
Look, I’ve got to address something that’s been bugging me for a while now.
There’s this strategy floating around YouTube — closing options at 50% profit — that sounds conservative and smart on the surface.
But here’s the reality: It means you’re literally reaching into your own pocket and giving back half your money.
And I would never do that.
When you sell a cash-secured put or a credit spread, you get paid 100% of your profit upfront. That’s it. That’s all you’re going to make on that trade. So when you close it at 50%, you’re giving back 50% of your profit just to get out early.
I’ll be straight with you — I don’t get it.
The truth is even the small amounts people shrug off matter. If I’m sitting on $147 of leftover premium and someone tells me to buy it back for $100 just to be safe, that’s a nice dinner out with my wife — maybe just appetizers, but still.
Those little wins add up fast when you book them week after week instead of handing them back.
And it gets worse. When you close early, commissions and slippage hit you again. You’re not just surrendering profit, you’re paying extra to surrender it. I’m not into that.
Some traders do this to avoid assignment, but assignment is where the real money starts. When I get shares assigned to me, I unlock two more income pillars — selling upside calls and collecting dividends — all while lowering my cost basis with every cycle.
That’s how wealth is built, not avoided.
The Real Problem Behind Early Exits
I think this strategy comes from traders selling puts on stocks they don’t want or don’t understand.
They chase high yields without doing real analysis then panic and close early because owning the stock wasn’t part of their plan.
That’s the first mistake: A poor setup is not a risk management technique.
There’s no universal rule that says close at 50%. Anyone saying there is one is selling simplicity, not results.
Markets shift. Volatility shifts. Good trading means adapting, not memorizing shortcuts.
This applies to credit spreads, too. I love credit spreads like a fat kid loves cake, but I still let them expire worthless whenever possible.
I don’t buy them back because time decay does its best work in the final stretch.
Why avoid the part of the trade that pays you the most?
Double Your Income by Doing Less
Here’s the part most people overlook: When you let trades run to their natural end, you get to redeploy the same capital repeatedly.
That compounding effect boosts your annualized returns far more than cutting winners short.
Close early and maybe you make a little faster, but hold through and those cycles stack. It’s the difference between making 20% on paper and turning the same capital several times for far more.
Since shifting to this approach, I’ve had three straight months hitting around $50,000 each. It’s at least twice the income I used to make using the common wisdom methods.
And the upside can get dramatic. I’ve seen trades that, once compounded, delivered annualized returns north of 400% on margin. You don’t get numbers like that by closing early and giving away the best part of the trade.
Want a simple shortcut to better setups? Look at the shape of implied volatility.
Three months out is where the real juice usually sits because it captures the next earnings cycle. That alone can lift trade quality before you even place an order.
Assignment isn’t a hazard. Time decay isn’t an enemy. And small profits aren’t small when you keep them.
You already got paid. Don’t give it back.
Now remember to join us live weekdays at 11:30 a.m. ET for Market Masters!
Market Masters exists to help traders build confidence and generate income through proven options education and strategies, live at 10:30 a.m. ET Monday-Friday.
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.
P.S. Tesla’s Next Move Could Catch Traders off Guard
It’ll take GM and Ford ages to catch up with Tesla at this rate.
TSLA plans to kick off full-scale production of its Cybercab next month…
This move appears to be a catalyst that could usher the stock into a new bullish cycle, despite current market uncertainty.
But I’ve been in this game long enough to know loading up on the ticker right now and swinging to the peak will just make you leave a lotta cash on the table.
Instead, there’s a different approach you can use to target payouts from TSLA over the next few weeks.
An approach that is deeply rooted in TSLA’s unique price action.
And I’ll give you all the details for free.
I can’t make trading guarantees.
But I can show you the very approach I call my 30-Day Tesla game plan.
The same game plan that has delivered a whopping 78% win rate on all live trades.
That’s like winning almost 8 out of every 10 trades.
If you trade Tesla, this is a moment worth understanding clearly.
So if you want all the details, including how you can jump on the very next opportunity…
See My TSLA Game Plan in Action
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%.
