To The Moon

How I Achieved 17.87% This Year Using Covered Calls, Cash-Secured Puts, and Trading Ranges 📈💰$NVDA 20260109 180.0 CALL$ 

This year, I managed to achieve a 17.87% return by focusing on one core philosophy: letting the market pay me to wait.

Instead of chasing breakouts or predicting tops and bottoms, I relied on selling options, managing risk, and trading within clear price ranges. My main tools were covered calls, cash-secured puts, and range trading on strong stocks like Nvidia (NVDA).

This approach did not require perfect timing. It did not depend on predicting earnings surprises or macro headlines. Instead, it relied on probabilities, discipline, and consistency. Most importantly, it allowed me to generate income whether the market went up, sideways, or even slightly down.

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My Core Philosophy: Income First, Speculation Second 🧠

I do not trade options like lottery tickets. I do not buy short-dated calls hoping for explosive upside. My priority is income generation, not excitement.

Every trade I enter must answer three questions:

1. Am I comfortable owning this stock?

2. Am I being paid enough to take the risk?

3. Is the trade aligned with the stock’s trading range?

If any one of these answers is “no,” I do not take the trade.

This mindset is the foundation of how I was able to reach 17.87% returns with relatively controlled risk.

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Why Options Selling Works for Me 🔄

Options sellers benefit from one powerful edge: time decay (theta). Every day that passes, option value erodes. As an option seller, I position myself on the side where time works for me, not against me.

Instead of needing the stock to move aggressively in one direction, I benefit when:

• The stock moves slowly

• The stock moves sideways

• The stock moves within a range

This is where strong, liquid stocks like Nvidia (NVDA) become ideal candidates.

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Why I Chose Nvidia (NVDA) for Range Trading 🟩🟥

Nvidia is volatile, liquid, and heavily traded. That volatility inflates option premiums, which means higher income for sellers.

However, despite its long-term uptrend, NVDA often trades in defined ranges for weeks or even months. During these periods, price moves between support and resistance, creating perfect conditions for:

• Selling covered calls near resistance 📉

• Selling cash-secured puts near support 📈

I do not need NVDA to skyrocket. I just need it to respect its range.

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Understanding Covered Calls (In Simple Terms) 🧾

A covered call happens when:

• I own 100 shares of a stock

• I sell a call option against those shares

By doing this, I receive option premium upfront. That premium is mine immediately, regardless of what happens next.

Why I Sell Covered Calls

I sell covered calls because:

• They generate income

• They lower my cost basis

• They work best in sideways or mildly bullish markets

When I sell a covered call, I am saying:

“I am happy to sell my shares at this price, and I want to be paid while waiting.”

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Example: Covered Call on NVDA 📊

Let’s say I own NVDA shares and the stock is trading around $185–190.

I identify resistance near $190–200. Instead of hoping the stock breaks out, I sell a call option at that strike.

From the image above, I repeatedly sold and bought back NVDA calls such as:

• Selling NVDA 190 calls

• Buying them back cheaper as time passed

• Re-selling again when premiums refreshed

Each cycle generated small but consistent profits.

Even if the stock didn’t move much, time decay worked in my favor.

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Outcomes of a Covered Call

There are only three outcomes, and I am comfortable with all of them:

1. Option expires worthless

→ I keep the premium and my shares 💰

2. Option is bought back early

→ I lock in profit and resell another call 🔄

3. Shares get called away

→ I sell at my chosen price + keep premium 📈

There is no “bad” outcome if the trade is planned correctly.

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Understanding Cash-Secured Puts 🪙

A cash-secured put happens when:

• I sell a put option

• I keep enough cash to buy the shares if assigned

This strategy allows me to get paid to buy stocks at a discount.

Instead of placing a limit order and waiting for nothing, I sell a put and collect premium while waiting.

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Why I Use Cash-Secured Puts

I use cash-secured puts because:

• They generate income even if I am not assigned

• They allow me to enter stocks at lower prices

• They work best in sideways or slightly bearish markets

When I sell a put, I am saying:

“I want to buy this stock, but only at a lower price — and I want to be paid while waiting.”

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Example: Cash-Secured Puts on Strong Stocks 💵

If NVDA is trading at $190 and I see strong support at $175–180, I may sell a put at $180.

Two outcomes:

1. Put expires worthless

→ I keep the premium, no shares assigned 💰

2. Put gets assigned

→ I buy NVDA at an effective discount 📉

Once assigned, I can immediately switch to selling covered calls, creating a full income cycle.

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The Power of the Options Wheel 🔁

By combining cash-secured puts and covered calls, I effectively run a wheel strategy:

1. Sell cash-secured puts

2. Get assigned shares

3. Sell covered calls

4. Shares get called away

5. Repeat

This cycle continuously generates cash flow, which compounds over time.

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How Trading Ranges Improve My Win Rate 🎯

I do not sell options randomly. I sell them based on price structure.

For NVDA, I identify:

• Support zones → sell puts

• Resistance zones → sell calls

This ensures I am selling fear at support and selling greed at resistance.

Instead of fighting the market, I align with its natural behavior.

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Risk Management: Why I Survived Volatility 🛡️

The reason I achieved 17.87% is not because I took huge risks — it is because I controlled downside.

My risk rules include:

• No over-leveraging

• Selling options with reasonable time to expiry

• Avoiding earnings unless priced in

• Rolling positions instead of panicking

I focus on position management, not prediction.

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Why Consistency Beats Home Runs 🐢

Most of my profits came from small, repeatable trades.

• $100 here

• $200 there

• Collected again and again

I do not aim for 100% wins. I aim for steady income, month after month.

This approach allowed my account to compound naturally, reaching 17.87% for the year without relying on lucky trades.

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Final Thoughts: Letting Time and Probability Work 📆✨

Selling options taught me patience. It taught me discipline. Most importantly, it taught me that making money does not require excitement.

By using:

• Covered calls for income

• Cash-secured puts for entry

• Trading ranges for structure

• Stocks like Nvidia for liquidity

I built a strategy that works with the market, not against it.

I do not need to be right every time. I just need to be consistent.

And that consistency is how I achieved 17.87% this year — one premium at a time. 💪📊

$NVDA 20260116 190.0 CALL$ @Daily_Discussion @TigerStars @TigerEvents @TigerStars @Daily_Discussion