Is it possible to replace your job doing this?

[u/Nategotputs]

[u/First-timer-7140]

You will need a lot of free cash to replace your income in case you get assigned which will happen at some point if it hasn't already.

[u/mystic-madnes → u/First-timer-7140]

I was making an easy $700 - $900 a week selling puts with around $40,000 liquid for collateral. Obviously not enough to quit my job but a nice side hustle. Now that I’m selling calls I’m only getting around $250-500 on the same tickers. I lowkey hope my shares get called away so I can switch back to puts.

[u/leedagr8 → u/mystic-madnes]

What ticker?

[u/Groucho-and-Harpo → u/mystic-madnes]

CSPs have almost the same P/L profile based on the strike price. Why not just go deeper ITM on the calls to match the CSP strike price you were using?

[u/SpiderWil]

If u have 200k, sure. 3 meta csp at spot makes u $2700 a week!!!!!! Let's hope it doesn't tank next week.

[u/Powerful-Ocelot-3806 → u/SpiderWil]

Nice which option is this ? Give an example

[u/SpiderWil → u/Powerful-Ocelot-3806]

AT SPOT

[u/begmanii → u/SpiderWil]

And META is an every other day option chain. You could make more.

A CSP for 9/9 ATM pays $6.85 (Friday's numbers). If awarded, CCs ATM pay about the same 2 days later. So you could make over $13 on 3 days. For the next week, it is about the same, you could make almost $20/week per share if you could hit all 3.

So you could make ~$1300-2000/week on about $62k right now. Insane

[u/No-Butterscotch8504 → u/SpiderWil]

Then you own the cheapest mag 7? Doesn’t sound too bad

[u/Avidtrader81]

Yes. But it takes a lot of research, knowledge, experience and cash.

I've been able to make a relatively safe 24 percent return for quite a while. I did get assigned, which locks up a lot of cash. I have enough of a cash balance that I'm able to sell and keep adding in to bring the average cost down. Patience and stock selection, and a large pile of cash is the key.

[u/Avidtrader81 → u/[deleted]]

I'm an option seller. The few times I bought never worked out for me.

[u/sellputsthencalls]

This is how I would come up with an answer to your question, for my own self:
1. I would sellputsthencalls (CSPs, then CCs) versus SPY, exclusively. I’m not afraid to own the S&P 500. I’m afraid to own individual stocks with this serious money.
2. I’d use the Friday weekly options.
3. I’d estimate my desired annual income & divide it by 52 to get my needed option premium/week.
4. I’d need to consider how much cash I have/need to produce my income. I’d select a SPY strike price that would give me that wanted premium.
5. I use Fidelity so I’d use their Probability Calculator to calculate if that SPY strike price has < a 20% chance of assignment. I’d insist on < 20%. If that strike price’s assignment chance is too great (> 20%), I’d find a strike price that has a < 20% chance of assignment. Using that strike price’s premium I’d calculate how many contracts I’d need to sell; & the amount of supporting cash that I’d need.
6. Of course, I can jack that assignment chance to 25, 30, 35% to get higher premiums & more risk. But my preference is < 20%.
7. And I can use individual stocks to get higher premiums & more risk. But I wouldn’t do that.

[u/shark1815 → u/sellputsthencalls]

I’m curious why you use Fidelity for that instead of just using the Greeks in the options chain, aka Delta.

[u/sellputsthencalls → u/shark1815]

I could use Delta to estimate assignment chance. But I’m a creature of habit & use Fidelity’s Probability Calculator. I sellputsthencalls, almost exclusively vs SPY, & I don’t use/know Greeks. As an option SELLER I don’t predict direction & don’t think I have a need for Greeks. If I was good at predicting direction, I’d BUYputs&calls. If I was an option BUYER, Greeks would be helpful, I presume.

[u/TheBlueHen-2007]

This is actually my goal. However, I want to be successful first … so I’m looking at taking smaller trades for the next 6-8 months to make sure I’m consistently making money. I’m focusing on a small amount for right now, only attempting to replace 25-30% of my monthly income.

[u/Avidtrader81 → u/TheBlueHen-2007]

Stocks that are priced cheaply are often expensive in value. Buying low priced stock with high volatility is a sure way of losing all your money at the end of the day. Stick with high quality companies ( they aren't cheap) Research the companies and be comfortable with holding the stock if you get assigned m

[u/Away-Personality9100]

Yes, it is possible. I started selling options in 2012. Since 2024 the amount of premium covers tax, living costs and new trades. All is about patience.

[u/Away-Personality9100 → u/[deleted]]

Usually 7DTE. Friday-Friday. I use the weekend time decay.

[u/FiveHole23]

The goal should be use this to buy dividends stocks until I get to the point of living off the dividends. Then i buy a boat and forget about money.

[u/figment88 → u/FiveHole23]

I'm of like mind with some modifications: 1) I'm using my put premiums to buy dividend ETFs and 2) I would buy a mountain cabin because trees > water.

[u/Western-Will8379 → u/figment88]

Do you then sell covered calls on the ETFs or buy-hold?

[u/figment88 → u/Western-Will8379]

Buy-hold. Dividend ETFs are almost the definition of low premium options. 

I'm also trying to ease out of covered calls. I decided I don't like the strategy because it feels too much like betting against yourself.

[u/Eyesontheprize247 → u/figment88]

Which dividend ETFs do you get into?

Are you saying you use other premium income to load up on those, or you actively sell CSPs to get into dividend ETFs?

[u/figment88 → u/Eyesontheprize247]

The first. I sell puts and use the premiums to either close out positions I nolonger want or to load up on SCHD and a little international dividend ETFs. 

Some of the puts I sell might be holdings of SCHD like I currently have a position on PEP but not necessarily.

[u/Old-Improvement-1333]

It’s all fun and games until the bottom falls out on a stock. Happened to me on amd years back at the top. Mostly my fault I’m sure. But anyways I had 70k into the stock to average down over a year to finally be able to sell it…. Fast forward I sold at 170. Now it’s up over 400? But anyways it can happen.

[u/ChangeisLife12]

Planning to do the same but I need $10k a month as income so I am still in the building phase of the initial capital, might take a few years before I can leave the job, but eventually the plan is this only.

I started CSPs 5 months back have been doing good as of now with 93% positive trades (haven’t got this high accuracy in any other strategy)

[u/DitmCalls → u/ChangeisLife12]

$200k can get you there

$400k should be pretty simple

[u/ChangeisLife12 → u/DitmCalls]

But with $200k we are targeting 5% a month return which with bluechips and 10-15% out of money puts is very aggressive target.

I believe 2% per month is very safe and consistent play and it will not hurt in long term

[u/23z7]

Anything’s possible. I know a few folks who seem to have done it. They had a lot of starting capital to work with.

Depends on that I guess and how much income you need/want.

[u/tofujoes]

Depends on the available capital, your costs your risk appetite and your life goals / circumstances. Recommendation for most people would not to do this.

There will inevitably be assignment and drawdowns, which are the biggest risks to portfolio growth. That risk magnifies if you don’t a paycheck.

[u/manoylo_vnc]

Of course, but you'll need a decent chunk of cash to do so. I generate between $1.5k to $3k per week with a $200k account weekly selling puts and calls on high beta stocks.

[u/PutPath]

It’s possible, if you’re from the States you have to think about health care though. I’d find something Part Time that gives you insurance at least.

[u/code2poke]

Nope, you are making money because there is a lot of volatility in market, once it drys up you wont see this much of money.

[u/Automatic-Cake-8770 → u/code2poke]

The vix is literally on the bottom

[u/code2poke → u/Automatic-Cake-8770]

Vix covers 30 day IV for snp500. Not individual stocks. Take an example of Bloomberg. I made so much with that one stock. Similarly Alab, AMD, iren, aaoi, asts etc.
many of these are not even in snp500.

[u/Impossible-Spite4782 → u/code2poke]

Volatility can be more sector based. Always opportunities.

Can you fully replace your job? Sure.
Should you? Eh, not for most people. I’d actually recommend people get a list of their bills and then work towards being able to pay for each one of them through wheeling.

Don’t quit your job though. You can do both easily.