Generating Consistent Income
16 strategies
Selling a call at a given strike and buying a call at a higher strike. Credit strategy that generates immediate income by betting on stagnation or slight decline of the underlying. Limited risk and capped profit.
Buying a put at a given strike and selling a put at a lower strike. Credit strategy that generates immediate income by betting on stagnation or slight rise of the underlying. Limited risk and capped profit.
Selling a put with cash as collateral. Generates regular income through collected premiums while positioning to acquire shares at a reduced price if the put is exercised. Popular strategy for passive income.
Holding shares while selling calls. Classic income generation strategy that transforms a passive long position into a regular cash-flow source. Ideal for stable or slightly bullish markets.
Holding shares with simultaneous sale of an OTM call and put. Doubles income by collecting two premiums. Excellent strategy for markets with anticipated low volatility and range trading conviction.
Buying a put and selling a call on a stock position. Protects against significant losses while limiting potential gains. Risk management strategy for conservative investors.
Simple stock holding for dividends and appreciation. Generates income through regular dividend distributions. Classic foundation of an income portfolio, often combined with option selling.
Selling a call without coverage. Generates maximum immediate income but exposes to theoretically unlimited upside risk. Reserved for very experienced traders with strong bearish or neutral conviction.
Selling a put without coverage. Collects premium immediately for income generation. Aggressive strategy that works well in bullish markets but exposes to significant losses if strong decline of the underlying.
Combination of bull put spread and bear call spread. Very popular neutral strategy that generates an initial credit and profits from low volatility. Regular income if price stays within the defined range.
Selling an ATM straddle protected by a long strangle. Generates a credit and profits from very low volatility around the current price. Excellent risk/reward ratio for income generation in stable environment.
Selling multiple calls against fewer calls bought at a higher strike. Generates net credit and substantial income if stability or slight decline. Beware of asymmetric risk if unexpected strong rise.
Selling multiple puts against fewer puts bought at a lower strike. Net credit allowing regular income generation. Works well in stable to slightly bullish environments.
Simultaneous sale of a call and put at the same ATM strike. Maximizes premium collection and generates significant income if very low volatility. Aggressive strategy exposed to significant bidirectional risks.
Selling an OTM call and put at different strikes. Generates a credit and regular income with high probability of success. Less risky than short straddle, perfect for monthly recurring income.
Buying ATM calls and selling OTM calls in a 2:1 ratio on a losing position. Does not generate direct income but reduces breakeven point without additional cost. Improves overall position for future income generation.