To The Moon

🐾 options Collar – How I Earned Steady Income with Just $1,650 and 100 Shares

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📜 The Beginning – Why I Chose QYLD

I didn’t stumble into QYLD by accident—it was a deliberate choice. QYLD is a Global X Nasdaq 100 Covered Call ETF, designed to generate consistent income by selling covered calls on the Nasdaq 100. What caught my eye wasn’t just its stability, but its mouthwatering dividend yield, which hands

 me $0.1653 per share every month like clockwork.

With 100 shares at about $16.80 each, my starting capital was only around $1,650. To most people, that sounds like small potatoes, but my plan wasn’t about gambling—it was about squeezing the most juice from every dollar by combining dividend income with options premium.

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💼 My Dual-Options Setup – Selling a Call & Selling a Put

Once my 100 shares were in hand, I executed what’s known in options circles as a “collar” variation—but with a twist. Instead of buying protective puts, I sold a put to collect even more premium.

Here’s the breakdown:

1. Sell a Covered Call (CC)

• Strike Price: $16.66

• Expiry: August 15, 2025 (4 days away when I placed it)

• Premium Collected: $0.28 per share → $28 total.

• Purpose: Earn immediate income by agreeing to sell my shares at $16.66 if called away.

2. Sell a Cash-Secured Put (CSP)

• Strike Price: $17.00

• Expiry: September 19, 2025

• Premium Collected: $0.29 per share → $29 total.

• Purpose: Earn income by agreeing to buy another 100 shares at $17 if the market dips.

By doing both, I essentially got paid twice—once for agreeing to potentially sell, and once for agreeing to potentially buy. This is a way to profit regardless of short-term market direction.

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💰 How the Money Stacks Up

• Covered Call Premium: $28

• Cash-Secured Put Premium: $29

• Monthly Dividend on 100 shares: $0.1653 × 100 = $16.53

Just from these three income streams, in one cycle, I’m looking at:

📈 $28 + $29 + $16.53 = $73.53

Now, if you annualize that with conservative assumptions, the numbers start to sparkle:

• Even if I only repeat this process 10 times a year (allowing for some rollovers and adjustments), that’s $735.30/year on a $1,650 investment.

• That’s a yield of about 44.6% annually—without needing the stock to skyrocket.

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🛡 Risk Management – Why My Risk is Low

The beauty of using QYLD for this strategy is its built-in dividend cushion and relatively low volatility compared to individual tech stocks. Here’s why my risk is well-contained:

1. Dividend Cushion

Every month, that $16.53 dividend offsets any temporary paper loss from the share price drifting down. Over time, it’s like getting paid rent on my capital.

2. Covered Call Safety

The covered call caps my upside beyond $16.66, but it also means I’ve already taken in cash upfront, lowering my breakeven.

3. Cash-Secured Put Safety

If the put gets assigned at $17, I’m happy to own more QYLD because it will give me double the dividends—and the premiums I collect lower my effective cost.

4. Slow Mover

QYLD isn’t a wild meme stock—it’s an ETF that moves gradually. That makes short-term options safer to sell without getting blown out by sudden $5 gaps.

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🔄 Possible Outcomes – How I Win Either Way

• Scenario 1 – Stock Rises Above $17

My put expires worthless (I keep $29), my covered call might get exercised (I sell at $16.66), and I still keep my $28 plus the dividend. I can then rebuy and reset the trade.

• Scenario 2 – Stock Stays Flat

Both options expire worthless, I pocket $57 in premiums, plus $16.53 in dividends, and I keep my shares. That’s the ideal “slow and steady” income play.

• Scenario 3 – Stock Falls Below $16.66

My covered call expires worthless (I keep $28), my put might get assigned, giving me another 100 shares at $17. I’d then sell covered calls on both positions while collecting double the dividends—my cash flow grows.

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🏠 Why This Works on Small Capital

Most people think you need tens of thousands to run an options-income strategy, but ETFs like QYLD make it possible with just 100 shares (~$1,650). This works because:

• Low share price → affordable to get 100 shares.

• High dividend yield → monthly cash flow.

• Liquid options chain → tight bid-ask spreads, easy to sell premium.

• Range-bound nature → works well for short calls and puts.

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✨ The Millionaire’s Mindset

When I run this strategy, I’m not chasing jackpots. I’m building predictable income. It’s like owning a small rental property that pays rent every month plus giving me the option to sell or buy more property at pre-agreed prices.

The secret is to keep capital working all the time. Every day that passes, I’m earning time decay (theta) from both the call and the put, while dividends roll in like clockwork. My returns compound not because the stock is skyrocketing, but because I’m stacking income streams—three ways at once.

This is how a disciplined trader turns $1,650 into a steady money machine without taking on reckless risk. In the long run, that’s what turns small accounts into big ones.

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$Global X Nasdaq 100 Covered Call ETF(QYLD)$  

@Wrtd @CaptainTiger @TigerStars @MillionaireTiger @Daily_Discussion