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Options Strategies for Income

Generate consistent income using conservative options strategies.

StockLrn Team
10 min read
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Beyond Buy and Hold

Options can generate income from stocks you already own or would like to own.

Covered Calls

Sell call options against shares you own. Collect premium in exchange for capping your upside. Best for stocks you're willing to sell at a higher price.

Cash-Secured Puts

Sell puts on stocks you'd like to buy at a lower price. You collect premium whether or not you end up buying the shares.

The Wheel Strategy

Combine puts and covered calls in a cycle: sell puts until assigned, then sell covered calls until shares are called away. Repeat.

Risk Management

Only use strategies on quality stocks you'd be happy to own long-term. Keep position sizes reasonable relative to your portfolio.