Premium Selling Strategies for Reliable Weekly Returns
February 2026 • 11 min read
Most traders lose money. That's the uncomfortable truth. They chase big wins, swing for the fences, and end up on a rollercoaster of emotions and account balances. But it doesn't have to be that way.
Before we dive into strategies, let's talk about mindset. Income trading requires a fundamental shift in how you think about the market.
Stop trying to predict direction. Seriously. Nobody knows where the market is going tomorrow. Not the analysts on TV, not the algorithms, not you.
Instead, ask a different question: Where is the market unlikely to go?
This is the edge. While gamblers bet on outcomes, income traders bet on probabilities. And when you structure trades around high-probability outcomes, time and math work in your favor.
No assignment risk. When options expire, you receive or pay cash—never stock. This eliminates the complexity of managing share positions.
SPX options can only be exercised at expiration, not before. This means no early assignment surprises that can blow up your margin.
Section 1256 contracts get 60/40 tax treatment. Even if you hold for one minute, 60% of gains are taxed as long-term capital gains.
SPX now has options expiring every single day, giving you maximum flexibility for income strategies.
A credit spread involves selling an option and buying a further out-of-the-money option for protection. You collect premium upfront and keep it if the market stays away from your strikes.
Put Credit Spread (Bullish/Neutral) - Sell a put below current price, buy a put further below for protection. Profit if SPX stays above your sold strike.
Call Credit Spread (Bearish/Neutral) - Sell a call above current price, buy a call further above for protection. Profit if SPX stays below your sold strike.
An iron condor combines a put spread and a call spread, betting that price will stay within a range. This strategy works best in range-bound, low-volatility environments.
Let's do some quick math on what "consistent income" actually looks like:
These aren't fantasy numbers. They're achievable with proper position sizing, discipline, and a systematic approach. The key word is average. Some days you'll make more, some days you'll lose. The goal is positive expectancy over time.
See our trade results and methodology. We post all our trades—wins and losses.
Learn More →Disclaimer: Options trading involves significant risk. Past performance doesn't guarantee future results. This content is educational only, not financial advice.