Theta
Time decay. Your paycheck.
Each day the option you sold loses a little value. That lost value is your profit.
Sell 30–45 days out
Field notes
Enough to screen a trade.
Short version of the book. Enough to run the scanner. Buy the book for sizing, rolling, and the full recipes.
Delta
Rough odds it finishes in the money.
A 0.30-delta option behaves like it has about a 30% chance of finishing in the money. This is the main dial.
0.20–0.30 for income
Vega
Is today a good day to sell?
Fear fattens premiums. Sell when volatility is up, not when it is asleep.
Sell when vol is elevated
Four animals
Two tame, two wild. This app never recommends the wild pair.
| Trade | Behind it | Worst case | Use it when |
|---|---|---|---|
Covered Call Tame | 100 shares you already own | You miss extra upside (capped gains) | You own shares and want rent |
Cash-Secured Put Tame | Cash set aside to buy the shares | Forced to buy a stock that keeps falling | You want to own it cheaper |
Naked Call Wild | Nothing but margin and hope | Theoretically unlimited loss | Almost never. Use a spread. |
Naked Put Wild | Margin, not full cash | Large, leveraged loss if the stock craters | Only if experienced and funded |
Chapter 1
House, not gambler
Buy an option and you pay for a chance. Sell one and someone pays you. That cash is the paycheck. You earn it by taking the rare, violent move. This scanner asks if the tape is paying you enough today. The book is the full argument.
Chapter 2
Two tame, two wild
Four ways to sell a single option. Covered calls and cash-secured puts are the two we use. Naked calls and naked puts are not. This app will never recommend the wild pair.
Chapter 3
Cash-secured put
Promise to buy 100 shares at a lower price, and set the cash aside. Keep the premium if the stock stays up. Buy the shares you already wanted if it falls. Only sell a strike you would be happy to own. Broad index funds first.
Chapter 4
Covered call
Own 100 shares. Sell someone the right to buy them. Keep the rent if the stock stays below the strike. Shares leave at a price you already liked if it rips. Sell at or above cost basis so assignment is a gain, not a locked-in loss.
Chapter 5
The wheel
The put gets you in. The call gets you out. Loop them and you collect in both directions. On a broad index, a calm month might pay about half a percent to one percent of the cash tied up. Anyone promising two to five percent a month, safely, is selling a course. High premium always equals high risk.
Chapter 11
Staying alive
Most blow-ups are sizing failures. Size for a 30% drop tomorrow. Take 50% profit and reset. Roll only for a credit. The rest of the survival chapter is in the book.