From zero to systematic options income — bite-sized concepts explained plainly
Every options contract has an expiry date. As time passes, the option loses value —
this erosion is called theta decay.
When you sell an option, you collect this time value upfront as cash.
The option then decays in your favour as each day passes.
Think of it like being the insurance company — you collect the premium,
and time works for you, not against you.
A bull put spread has two legs:
SELL a put option at a higher strike (collect premium)
BUY a put option at a lower strike (pay small premium as insurance)
The difference is your credit — cash in your account immediately.
Your maximum loss is capped at the spread width minus credit received.
Your risk is defined from the start.
SPX (S&P 500 Index) options are the most liquid in the world.
✅ Cash settled — no shares ever assigned
✅ 60/40 tax treatment (US traders)
✅ Weekly expiries — income every single week
✅ Tight bid-ask spreads — better fills
✅ Open Interest 40M+ contracts
We sell puts at 5 delta — meaning the market
assigns only a 5% probability of the option expiring in the money.
Put differently: we win approximately 95% of weeks
if we follow the system consistently.
The occasional loss is managed by our stop loss and Thursday close rules —
so no single bad week can wipe out months of gains.