After blowing up three accounts trying to get rich quick with options, I discovered something revolutionary: boring options strategies that consistently make 2-3% per month are infinitely better than exciting strategies that make 100% once then lose 100% five times. These “safe” strategies turned my options trading from gambling into an actual income stream that pays my mortgage.

Let me be clear about what “safe” means in options – it’s like saying “safest way to juggle chainsaws.” There’s always risk, but these strategies are more like juggling tennis balls with one chainsaw mixed in, rather than five flaming chainsaws while blindfolded. I’ve been running these strategies for four years now, and they generate $3,000-5,000 monthly on a $150,000 account. Not yacht money, but it’s real, consistent, and doesn’t require watching screens all day.

The strategies I’m about to show you are what the “Theta Gang” traders use – we’re the boring people selling options to the degenerates buying lottery tickets. We’re the casino, not the gambler. And just like a casino, we don’t win every hand, but we win over time because math and probability are on our side.

The Wheel Strategy (The Gateway Drug to Income Trading)

The Wheel is so simple that when I first learned it, I thought “this can’t actually work.” Then I made $24,000 in my first year running it on just five stocks.

How The Wheel Works

Step 1: Sell Cash-Secured Puts

• Pick a stock you want to own
• Sell puts below current price
• Collect premium
• If assigned, you buy shares
• If not, keep premium and repeat

Step 2: Sell Covered Calls (if assigned)

• Own 100 shares from assignment
• Sell calls above your cost basis
• Collect premium
• If called away, take profit
• If not, keep premium and repeat

Step 3: Repeat Forever Back to Step 1

My Real Wheel Example on Ford (F)

Starting Capital: $1,200

Month 1: Ford at $12

• Sold $11.50 put for $0.30
• Ford stayed above $11.50
• Kept $30 premium

Month 2: Ford at $11.75

• Sold $11 put for $0.25
• Ford dropped to $10.80
• Assigned 100 shares at $11
• Total premiums collected: $55
• Effective cost basis: $10.45

Month 3-5: Own 100 shares

• Sold $11.50 calls monthly for $0.20 average
• Collected $60 in premiums
• Ford stayed below $11.50

Month 6: Ford rallied to $12

• Shares called away at $11.50
• Profit on shares: $105
• Total premiums collected: $115
• Total profit: $220 on $1,200 (18% in 6 months)

The Wheel Position Sizing

Account Size Requirements:

• Minimum: $5,000 (one wheel on cheap stock)
• Comfortable: $25,000 (5 wheels running)
• Optimal: $50,000+ (10+ wheels)

My Current Wheels:

• Ford: $1,200 allocated
• AT&T: $2,000 allocated
• INTC: $3,000 allocated
• PLTR: $2,500 allocated
• SOFI: $800 allocated

Total allocated: $9,500 Monthly income: $300-400 Annual return: 38-50%

When The Wheel Goes Wrong

My Wheel Disaster on WISH:

• Sold $5 puts when stock was at $5.50
• Collected $0.40 premium (seemed great!)
• Stock crashed to $2
• Assigned at $5
• Sold $5 calls for $0.05 (pathetic)
• Stock went to $0.80
• Still holding bags
• Loss: $380 per contract

Lesson: Only wheel stocks you actually want to own long-term

Cash-Secured Puts (The “Get Paid to Buy Stocks” Strategy)

This is just the first half of the wheel, but run independently. It’s how I generate $1,500/month in my IRA.

The Setup

1. Find stocks you’d buy at current price
2. Sell puts 5-10% below market
3. 30-45 days to expiration
4. Collect 1-2% premium
5. Either keep premium or own stock cheaper

My Current Cash-Secured Put Positions

AAPL Position:

• Stock price: $180
• Sold $175 put for $2.50
• 35 days to expiration
• Cash secured: $17,500
• Return if expires: 1.4% in 35 days (14.6% annualized)

SPY Position:

• Stock price: $480
• Sold $470 put for $5.00
• 30 days to expiration
• Cash secured: $47,000
• Return if expires: 1.1% in 30 days (13.2% annualized)

MSFT Position:

• Stock price: $380
• Sold $370 put for $4.00
• 40 days to expiration
• Cash secured: $37,000
• Return if expires: 1.1% in 40 days (9.9% annualized)

Total cash secured: $101,500 Monthly income: $1,150 average Win rate: 82% (expires worthless)

The 16 Delta Rule

I sell puts at 16 delta, which means:

• 84% probability of expiring worthless
• 16% chance of assignment
• Sweet spot for risk/reward

My Statistics Over 200 Trades:

• Win rate: 83%
• Average premium: 1.3%
• Average loss when assigned: -2.1%
• Net monthly return: 1.8%

Managing Losing Positions

When stock drops below strike:

Option 1: Take Assignment

• You wanted to own it anyway
• Start selling calls
• Run the wheel

Option 2: Roll Down and Out

• Buy back put for loss
• Sell new put further out, lower strike
• Collect additional premium
• Reduce cost basis

Example Roll:

• Sold NVDA $650 put for $10
• NVDA dropped to $640
• Bought back put for $15 (loss $5)
• Sold $640 put next month for $12
• Net credit: $7 vs original $10
• Lowered strike by $10

Credit Spreads (The Limited Risk Income Machine)

Credit spreads are selling one option and buying another further out. You cap your profit but also cap your loss.

Bull Put Spreads (My Favorite)

Sell a put, buy a cheaper put below it.

Current Example Trade:

• SPY at $480
• Sell $470 put for $5.00
• Buy $465 put for $3.50
• Net credit: $1.50
• Max profit: $150
• Max loss: $350
• Return: 43% if SPY stays above $470
• Probability of profit: 75%

My Monthly Credit Spread Income:

• 10 spreads per month average
• Average credit: $100 per spread
• Win rate: 72%
• Average loss: -$200
• Net monthly: 10 × ($100 × 0.72 – $200 × 0.28) = $160

Not huge money, but consistent.

Iron Condors (The Market Neutral Income)

Sell both a call spread and put spread. Profit if stock stays in range.

My Iron Condor on QQQ:

• QQQ at $400
• Sell $410/$415 call spread for $1.50
• Sell $390/$385 put spread for $1.50
• Total credit: $3.00
• Max profit: $300
• Max loss: $200
• Profit range: $390-410
• Probability of profit: 68%

Monthly Iron Condor Results:

• Average 5 condors
• Win rate: 65%
• Average win: $200
• Average loss: -$150
• Net monthly: $375

The 45 DTE Entry, 21 DTE Exit Rule

Best risk/reward for credit spreads:

• Enter 45 days to expiration
• Exit at 50% profit or 21 DTE
• Never hold to expiration

Results Using This Rule:

• Win rate: 78%
• Average hold time: 18 days
• Average return per trade: 8%
• Monthly income: $800 on $10,000 allocated

Covered Calls (The Classic Income Strategy)

Already covered in detail, but here’s my current covered call income:

Portfolio: $150,000 in stocks Positions: 15 different stocks Monthly premium: $1,800 average Annual return from calls alone: 14.4% Best performers: MARA, RIOT, PLTR (high IV)

Poor Man’s Covered Calls (Covered Calls Without the Stock)

Buy LEAP calls, sell monthly calls against them.

My TSLA PMCC

Setup:

• Bought Jan 2026 $700 call for $150
• Stock was at $750
• Total investment: $15,000

Monthly Income:

• Sell $850 monthly calls
• Average premium: $20
• Monthly return: 1.3%
• Annual return: 15.6%

Risk: If TSLA drops below $700, LEAP loses value fast

Current P&L:

• LEAP value: $180 (up $30)
• Premiums collected: $80
• Total profit: $110 in 4 months

The Calendar Spread Income Play

Buy long-term option, sell short-term same strike.

My SPY Calendar Spread

Setup:

• Buy 60-day $480 call for $10
• Sell 30-day $480 call for $6
• Net debit: $4
• If SPY at $480 at short expiration:
  • Short call expires worthless
  • Long call worth ~$6
  • Profit: $2 (50% return)

Monthly Calendar Results:

• 5 calendars per month
• Win rate: 60%
• Average win: $150
• Average loss: -$100
• Net monthly: $250

My Complete Safe Income Portfolio

Allocation

• $50,000: Cash-secured puts
• $40,000: The Wheel
• $30,000: Covered calls
• $20,000: Credit spreads
• $10,000: PMCC/Calendars

Monthly Income Breakdown

• Cash-secured puts: $650
• The Wheel: $500
• Covered calls: $600
• Credit spreads: $400
• PMCC/Calendars: $350
• Total: $2,500/month

Annual Return

• Total capital: $150,000
• Annual income: $30,000
• Return: 20%
• Hours worked per month: 10

Risk Management for Income Strategies

Position Sizing Rules

Never allocate more than:

• 5% to any single position
• 20% to any single strategy
• 30% to high IV stocks
• 50% of total capital (keep rest in cash/bonds)

The Volatility Check

Check IV rank before every trade:

• IV Rank < 30%: Skip the trade
• IV Rank 30-50%: Normal sizing
• IV Rank > 50%: Reduce size (IV will crush)

Diversification Requirements

Minimum diversification:

• 10 different underlyings
• 5 different sectors
• Mix of ETFs and stocks
• Variety of expiration dates

When to Stop

Circuit breakers:

• Down 5% in a month: Reduce by 50%
• Down 10%: Stop for month
• Down 15%: Full strategy review

Common Income Strategy Mistakes

Mistake 1: Chasing Premium

Sold puts on BBBY for 10% monthly premium. Stock went to zero. Lost everything.

Lesson: High premium = high risk, always

Mistake 2: Not Managing Winners

Let winning trade turn into loser by holding too long.

Lesson: Take profits at 50-75%, don’t be greedy

Mistake 3: Overallocation

Put 50% of account in one wheel. Stock crashed. Devastating loss.

Lesson: Maximum 5% per position, period

Mistake 4: Ignoring Assignment Risk

Sold ITM calls before ex-dividend. Assigned early. Lost dividend and position.

Lesson: Understand early assignment risk

Mistake 5: Trading Through Earnings

Sold puts before earnings for premium. Stock dropped 30%. Massive loss.

Lesson: Close positions before binary events

The Psychology of Income Trading

The Mindset Shift

From: “I need to make 100% returns!” To: “I need to make 2% this month”

From: “This trade will make me rich!” To: “This trade will pay my phone bill”

From: “I hope this works” To: “Probability says this works 70% of the time”

Dealing with Assignment

Assignment isn’t failure – it’s part of the strategy. I get assigned 2-3 times per month. It’s normal and expected.

The Compound Effect

$2,500/month doesn’t sound sexy, but:

• Year 1: $30,000
• Year 5: $150,000 (with reinvestment)
• Year 10: $400,000+
• Year 20: Retirement

Small consistent gains > large inconsistent gains

Tools for Income Trading

Essential Software

• Options profit calculator (free online)
• IV rank scanner (most brokers have)
• Earnings calendar
• Position tracker spreadsheet

Brokers for Income Trading

• Tastyworks: Built for this
• TD Ameritrade: Great tools
• Interactive Brokers: Lowest margin rates

Education Resources

• TastyTrade: Free education
• r/thetagang: Reddit community
• Options Alpha: Good courses

The Bottom Line on Safe Options Income

After four years of running these “boring” strategies, I make more money selling options premium than I ever did trying to hit home runs. My account grows slowly but steadily. I sleep perfectly at night. My wife actually trusts me with our money again.

These strategies won’t make you rich overnight. You won’t screenshot 1000% gains. Nobody will be impressed at parties. But you will:

• Generate consistent monthly income
• Outperform most active traders
• Keep your capital intact
• Actually enjoy trading
• Build real wealth over time

Start with one strategy. Master it. Add another. In a year, you’ll have a diversified income machine that pays you every month regardless of market direction.

The market pays patient income collectors more than impatient gain chasers. Be the casino, not the gambler. Sell shovels during the gold rush. Let the degenerates chase 10-baggers while you consistently collect 2% monthly.

Boring? Yes. Profitable? Also yes. And profitable boring beats exciting poverty every single time.