Articles

The Poor Man's Covered Call (PMCC) is a powerful options strategy for investors who want to generate income like a traditional covered call — but with less capital. Let’s break down how to set one up and manage it successfully. What Is a Poor Man’s Covered Call? A traditional covered call involves buying 100 shares of a stock and selling a call option against those shares. However, owning 100 shares of a high-priced stock can tie up a lot of cash. The PMCC replicates this strategy with a long-dated call option (LEAP) acting as a stock substitute. In simple terms:...

Maximizing Profits: The Most Lucrative High IV Options Trading Strategies When market volatility surges, seasoned options traders know that it presents a golden opportunity to capitalize on inflated premiums. High implied volatility (IV) often means options are more expensive, and for those who know how to structure their trades wisely, this can lead to substantial profits. This VIX is elevated right now and we are considered to be in a high IV when it's trading over 20. Here is the VIX today:   Here are some of the best strategies for trading in high IV environments. 1. Iron Condors An...

Never-Ending Wheel Strategy: A Step-by-Step Guide to Generating Income and Share Accumulation The Wheel strategy is a popular options trading approach that allows investors to generate income while accumulating shares of quality stocks at a discount. It’s an excellent strategy for both beginners and experienced traders who want to combine options income with long-term stock ownership. I’m going to present a modified version where a stock position is held indefinitely and the options income is used in a multitude ways. Here’s how it works. Step 1: Using a Synthetic Short Put (Buy/Write Strategy) Instead of selling a cash-secured put, an...

The Wheel Options Strategy: A Step-by-Step Guide to Generating Income The Wheel strategy is a popular options trading approach that allows investors to generate income while accumulating shares of quality stocks at a discount. It’s an excellent strategy for both beginners and experienced traders who want to combine options income with long-term stock ownership. The wheel strategy is ideal for investors who can afford to buy 200 shares of stock. Here’s how it works. Phase 0: Selling Cash-Secured Puts The first step in the Wheel strategy is selling cash-secured put options on a stock you’re willing to own. A put...