Options Trading for Passive Income

In our fast-pacing world, time is money. We all have our set ways to generate a daily stream of income for a livelihood. While our source of livelihood consumes the majority of our time, commitment, and energy, a few extra bucks on the side never hurt. Options trading is a great source of passive income for investors and beginners in the trading world. 

On one hand, Active trading deems our entire attention, options trading serves to earn passive income without constant indulgence. Let’s move on to a few strategies of options trading that we can use as a source of passive income.

 

Covered Calls

The most basic technique for options trading is the covered call. It involves minimum risk and consistent gains without having to invest your energy on a daily basis to maintain your portfolio.

When a person buys a few stocks in his/her name, they can further go ahead and sell the calls against the stock they bought. One option comprises 100 shares; hence, it is advised to buy stocks in multiples of hundreds if you want to sell multiple calls. Based on the number of stocks you buy; you can sell calls for a premium (which will be your difference between the value of the stock at the time of buying and selling) with a strike price that is slightly higher than the price you anticipate for these shares at option expiration. Your profit per option will be one hundred (the number of shares per option) multiplied by the premium of the call.

Image Credit: www.investopedia.com

 

This strategy involves minimal risk as you will always at least make a profit on the premium value of your call. Whereas, there is a slight setback to the covered call strategy in cases where the price of the stock dramatically rises. In this scenario, the buyer will exercise the options and you will end up making less profit on the premium value as compared to the value of the stock if you sold it in the open market.

Covered calls require limited attention as the most you need to do is monitor the value of the stock on a daily basis without investing too much energy. They are free of stock price fluctuation-related risks. Another great benefit of the covered call strategy as a source of passive income is its flexibility. If the buyer does not exercise his calls before the expiration date, you still own the share of the stock which is resalable in the open market as new calls and you can generate additional passive income with no additional effort on your hand.

 

Selling Put Options

If you’re an active investor who is looking for a side hustle via options trading, you can arrange to buy new stocks in the future at a lower price by selling put options. CEO of Berkshire Hathaway, Warren Buffet is well-renowned to make huge gains out of selling put options. While this strategy bears out of a desire to buy shares in the future, let’s take a deeper look at its utility in options trading for a passive income.

Selling put options is a light-hearted options trading strategy that can be utilized to generate a good amount of passive income. Make sure to choose the stock you want to purchase and set the strike price of the option equal to the price you are looking forward to buying the stock for. Once you do that, you only need to sell a put option for the stock.

Image Credit: www.investopedia.com

 

This will not only help you to generate income through the premium at which you sold the put option but also allows you time till the buyer chooses to exercise the stock. As soon as the buyer exercises the option, you need to buy the new stocks you chose to purchase in the first place to have both the premium made by selling the put option and the additional stocks bought with limited effort. 

Another added advantage of this technique is that you can still keep the premium even if the put option remains not exercised at expiration. It also allows you to sell new put options for an additional premium without any additional input to generate a passive income. 

 

The Bottom Line

While covered calls and selling put options serve as safe option trading techniques to generate a passive income. We can also look at Iron Condors and defined risk spreads to determine how we can sell time to make a monthly passive income. These techniques are a little more complicated and would require pre-learning before diving with full force into options trading with them. 

Selling and buying options provide an excellent opportunity for people with tight schedules to sell yearly or bi-yearly on calls and maintain an influx of cashflow with no extra hard work and downside risk.

To further ease out your job with options trading, we suggest you use MarketXLS templates for your portfolio management which will provide you with extended excel functionalities to fetch real-time options data into your excel sheet.

We have specific templates created just to cater to the covered call and selling put option strategies.

Head to the website for more info on the various screeners and templates we have with us at MarketXLS: https://marketxls.com/

Refer to this link, for a demo session with MarketXLS: https://calendly.com/marketxls-sales/marketxls-demo-clone

Also, find the Pricing link attached: https://marketxls.com/pricing

 

References

https://tradeveda.com/

www.investopedia.com

 

 

Verelq News |
29.03.2024

شرط بندی پرسپولیس شرط بندی استقلال شرط بندی روی تراکتورسازی تبریز شرط بندی روی سپاهان شرط بندی رئال مادرید بارسلونا شرط بندی شرط بندی psg سایت شرط بندی جام جهانی شرط بندی جام جهانی 2026 سایت شرط بندی جام جهانی 2026 بازی انفجار رایگان سایت انفجار ضریب بالا بهترین سایت شرط بندی فارسی شرط بندی بدون فیلتر شرط بندی بازی رولت شرط بندی پوکر شرط بندی مونتی شرط بندی سنگ کاغذ قیچی شرط بندی بلک جک کرش رویال بت پاسور شرط شرط بندی تخته نرد آنلاین انفجار 2 بت شرط بندی بازی اسلات شرط بندی بازی پوپ سایت سامان بت ریور پوکر 2024 سایت 4030bet ورود به بازی انفجار دنس بت شرط بندی انفجار دنس آموزش بازی پوکر سایت شرط بندی 123 بهترین شرط بندی بهترین سایت شرط بندی انفجار اپلیکیشن بازی انفجار دانلود بازی انفجار انفجار بازی ربات بازی انفجار کازینو آنلاین ایرانی انفجار پولساز ورود به بازی انفجار بازی انفجار با شارژ 10 تومن سایت bet betyek وان ایکس برو آدرس سایت بت یک سایت دوست دختر اونلی فنز فارسی پیدا کردن دوست دختر ورود به ریور پوکر پدرام مختاری پویان مختاری نازنین همدانی مونتیگو داوود هزینه بیوگرافی آیسان اسلامی بیوگرافی دنیا جهانبخت سایت رسمی حسین تهی بیوگرافی کوروش وانتونز سایت آرتا وانتونز رها وانتونز بیوگرافی ربکا قادری سحر قریشی بیوگرافی تتلو بیوگرافی مهدی طارمی الناز شاکردوست سایت عادل فردوسی پور بیوگرافی نیلی افشار بیوگرافی محمدرضا گلزار سایت armin2afm بیوگرافی شادمهر عقیلی بیوگرافی سردارآزمون بیوگرافی علیرضا بیرانوند بیوگرافی رامین رضاییان وریا غفوری بیوگرافی علی دایی بیوگرافی پوریا پوتک مدگل سایت حصین بیوگرافی صدف طاهریان فرشاد سایلنت بیوگرافی آریا کئوکسر بیوگرافی sogang بیوگرافی میا پلیز بیوگرافی مهراد هیدن سایت رسمی سهراب ام جی بیوگرافی علیرضا جی جی بیوگرافی بهزاد لیتو اشکان فدایی بیوگرافی رضا پیشرو بیوگرافی گلشیفته بیوگرافی هیپ هاپولوژیست بیوگرافی سارن بیوگرافی آدام مرادی بیوگرافی محمد هلاکویی بیوگرافی علی حسنی سایت رسمی علی حسنی بیوگرافی ساسی خواننده بیوگرافی ابی باربد معصومی حسینی فایننس بیوگرافی امیرحسین نام آور بیوگرافی امین فردین بیوگرافی فرزاد وجیهی سایت سیب بت سایت jetbet آدرس جدید بت فوروارد وان ایکس بت سایت abt90 بازی انفجار سایت شرط بندی فاز بت بهترین سایت شرط بندی انفجار ورود به آلپاری آلپاری فارکس آدرس بروکر آلپاری بدون فیلتر ثبت نام در بروکر آلپاری فارسی صرافی کوکوین ربات فارکس بهترین سایت تتر

bandar alexistogel

alexistogel toto online

alexistogel livedraw hongkong

login alexistogel

alexistogel agen slot

Alexistogel Toto Macau

alexistogel

alexistogel macau

Alexistogel macau

alexistogel terpercaya

bandar togel hongkong

alexistogel slot online

Togel Hongkong

toto macau online

bandar toto macau

alexis togel macau

alexistogel slot

alexistogel gacor

alexistogel online

slot alexistogel

alexistogel slot

link alexistogel

bandar alexistogel

alexistogel link

alexistogel online

situs alexistogel

alexistogel toto

alexistogel casino

slot alexistogel

alexistogel bandar togel

link alternatif alexistogel

alexistogel bandar slot

alexistogel login

rtp alexistogel

alexistogel toto macau

alexistogel slot

alexistogel online

alexistogel daftar

alexistogel slot

alexistogel link alternatif

alexistogel bandar gacor

alexistogel terpercaya

Alexistogel Login

alexistogel

alexistogel slot dana

alexistogel bandar togel

alexistogel situs

alexistogel rtp

alexistogel slot

alexistogel daftar

alexistogel

alexistogel slot

alexistogel

alexistogel

alexistogel gacor

link alternatif alexistogel

alexistogel

alexistogel slot

alexistogel

alexistogel

Slot Online Alexistogel

link alternatif alexistogel

Alexistogel Login

slot online gacor

Hoki88 Slot Online

slot online gacor

slot online

slot online dana

slot gampang menang

slot88 online

bandar togel macau

bandar toto macau

togel sydney

Agen Slot Gacor

RTP Slot Online

slot online

Slot Online Gacor

slot gacor pg soft

situs slot online

bandar slot gacor

slot online resmi

bandar togel online

RTP LIVE

Bandar Toto Macau

Situs Slot Gacor

bandarbola855 resmi

bandarbola855 gacor

bandarbola855 slot

link bandarbola855

bandarbola855 bola slot

bandarbola855 rtp

bandarbola855 slot online

bandarbola855 link

bandarbola855 bandar

bandarbola855 slot terpercaya

bandarbola855

bandarbola855 slot

bandarbola855 terpercaya

bandarbola855 online

slot bandarbola855

bandarbola855 slot

bandarbola855 daftar

bandarbola855 link

bandarbola855

bandarbola855

bandarbola855

bandarbola855 slot

bandarbola855

iosbet

iosbet

link iosbet

slot online iosbet

iosbet link login

slot iosbet

iosbet gacor

iosbet slot

iosbet

slot iosbet

agen iosbet

bandar iosbet

iosbet

iosbet link

bandar iosbet gacor

liatogel

bandar liatogel

login liatogel

live draw hk liatogel

liatogel slot online gacor

liatogel totomacau

liatogel link

slot gacor

daftar slot online

bandar slot dana

slot ovo

slot gopay