Selling options changed everything for me. I generate thousands...
Jason Luongo@JasonL_Capital
55 views
Mar 18, 2026
~2 min read
Advertisement
1
Selling options changed everything for me.
I generate thousands every month in premium income. It's not complicated.
Here's my entire strategy broken down:
I generate thousands every month in premium income. It's not complicated.
Here's my entire strategy broken down:
2
Cash-Secured Puts (CSP):
You agree to buy 100 shares at a specific price by a specific date. In exchange, you collect premium upfront.
If the stock stays above your strike, you keep the premium. If it drops below, you buy shares you already wanted at a discount.
Example: Sell $IREN $35 put expiring 4/17
Collateral: $35 x 100 = $3,500
Premium: $1.63 x 100 = $163
That's a 4.7% return on capital in 36 days, or 47% annualized.
You agree to buy 100 shares at a specific price by a specific date. In exchange, you collect premium upfront.
If the stock stays above your strike, you keep the premium. If it drops below, you buy shares you already wanted at a discount.
Example: Sell $IREN $35 put expiring 4/17
Collateral: $35 x 100 = $3,500
Premium: $1.63 x 100 = $163
That's a 4.7% return on capital in 36 days, or 47% annualized.
3
Covered Calls (CC):
You own 100 shares and agree to sell them at a specific price by a specific date. You collect premium upfront.
If the stock stays below your strike, you keep shares and premium. If it rises above, you sell at a profit.
Example: Sell $HOOD $90 covered call expiring 4/17
Collateral: 100 shares
Premium collected upfront while you hold a stock you already own.
You own 100 shares and agree to sell them at a specific price by a specific date. You collect premium upfront.
If the stock stays below your strike, you keep shares and premium. If it rises above, you sell at a profit.
Example: Sell $HOOD $90 covered call expiring 4/17
Collateral: 100 shares
Premium collected upfront while you hold a stock you already own.
4
Days to Expiration (DTE):
My sweet spot is 30 DTE.
Theta decay accelerates hardest in the final 30 days. By entering here, time is working hard in my favor from day one.
I close at 50% profit and redeploy. The annualized math on closing early destroys holding to expiration.
My sweet spot is 30 DTE.
Theta decay accelerates hardest in the final 30 days. By entering here, time is working hard in my favor from day one.
I close at 50% profit and redeploy. The annualized math on closing early destroys holding to expiration.
5
The Wheel Strategy:
This is the full system. It connects everything.
Step 1: Sell cash-secured puts until you get assigned
Step 2: Once assigned, sell covered calls until shares get called away
Step 3: Start over
Every phase generates income. Every outcome is planned before you enter.
This is the full system. It connects everything.
Step 1: Sell cash-secured puts until you get assigned
Step 2: Once assigned, sell covered calls until shares get called away
Step 3: Start over
Every phase generates income. Every outcome is planned before you enter.
6
Every trade I enter has three possible outcomes:
1. Stock stays above my strike - I keep the premium
2. Stock drops but I still like it - I roll down and out, collect more premium
3. I get assigned - I buy shares I wanted at a discount and start selling covered calls
No outcome is a surprise.
1. Stock stays above my strike - I keep the premium
2. Stock drops but I still like it - I roll down and out, collect more premium
3. I get assigned - I buy shares I wanted at a discount and start selling covered calls
No outcome is a surprise.
7
My rules:
1. Only sell on stocks I'd happily own for years
2. Target ~0.20 delta (~80% probability of keeping premium)
3. 30 DTE sweet spot
4. Close at 50% profit
5. Check IV environment first - high IV = sell premium, low IV = buy LEAPs
6. Liquidity is non-negotiable - tight spreads or I move on
7. Always have an exit plan before entering
1. Only sell on stocks I'd happily own for years
2. Target ~0.20 delta (~80% probability of keeping premium)
3. 30 DTE sweet spot
4. Close at 50% profit
5. Check IV environment first - high IV = sell premium, low IV = buy LEAPs
6. Liquidity is non-negotiable - tight spreads or I move on
7. Always have an exit plan before entering
8
Some of my favorite names to sell options on right now:
$IREN
$HOOD
$ONDS
$RKLB
$SOFI
$SOFI
$ZETA
$IREN
$HOOD
$ONDS
$RKLB
$SOFI
$SOFI
$ZETA
9
I share every options trade I make in real time. Every cash-secured put, covered call, and LEAP. The full thought process behind each one.
Subscribe here: x.com/JasonL_Capital…
Subscribe here: x.com/JasonL_Capital…
