Category 7
Options-based income
You sell someone the right to buy or sell at a set price, and keep the premium.
Everything in this category is paid the same way, so what separates one page from the next is the wrapper rather than where the money comes from: how much it takes to start, how quickly you could turn it back into cash, who does the work, how it is taxed, and how it fails. The line on each card says whether the income keeps arriving once it is set up or whether somebody has to keep working for it. If the mechanism itself is new to you, the course spends a whole lesson on it and is a shorter way in than any single page here.
Covered Calls
You own at least 100 shares of a stock and sell someone the right to buy them from you at a fixed strike price; the buyer's premium is credited to your account immediately.
Read →Cash-Secured Puts
You set aside cash to buy 100 shares at a chosen price and sell someone the right to make you buy them there, keeping the premium whether or not that happens.
Read →Put-Write Strategies
A rules-based programme of repeatedly selling index puts against a Treasury-bill collateral pool, so the income is a volatility risk premium stacked on top of a cash yield.
Read →Covered-Call Funds
A fund holds a stock portfolio and systematically sells call options against it, then passes the premium through as a monthly or weekly distribution.
Read →Option-Income Closed-End Funds
A closed-end fund with a fixed share count runs an option-writing programme and pays a managed monthly distribution, while its shares trade at a discount or premium to the assets behind them.
Read →Credit Spreads
You sell one option and buy a cheaper, further-out-of-the-money option in the same expiration, keeping the net credit and capping the worst case at the distance between the strikes.
Read →Iron Condors
Two credit spreads at once — one above the market, one below — so you collect premium from both sides and profit if the underlying goes nowhere.
Read →Collar Strategies
You own the stock, sell a call above the market and use the premium to buy a protective put below it, fencing the position between a floor and a ceiling.
Read →