Options trading often rewards patience, discipline, and the ability to recognize value at key levels. One recent example for me came with Global X Nasdaq 100 Covered Call ETF (QYLD). The ETF had pulled back to the $16 range, which I identified as a strong area of support. This presented the perfect setup for selling a two-month LEAP put—a strategy that not only gives me a buffer against further declines but also allows me to earn steady cash flow through premiums, dividends, and interest income.
By selling the $16 put, I positioned myself in a win-win situation. If QYLD remains above $16, I simply keep the premium received from the trade. If it falls slightly, I still benefit from the 4–5% downside buffer built into my entry. That cushion allows me to ride out short-term volatility without fear, knowing that even if I’m assigned, I’ll be acquiring shares at a discount. To me, this is the essence of trading conservatively with options—using time and probability to my advantage.
What makes this trade even more appealing is the way I can reinvest the collected premium. Instead of letting cash sit idle, I place it in a money market account that pays daily interest. This means every dollar collected continues working for me, compounding returns quietly in the background. It may sound simple, but this extra layer of efficiency is what separates disciplined traders from casual speculators.
Another unique benefit of using QYLD in this strategy is its consistent monthly dividend of around $0.16 per share. Even if I eventually get assigned the shares, I know I will begin collecting that dividend income immediately. This creates an additional income stream that works hand-in-hand with the premium from the sold put. The combination of option premium, dividend yield, and money market interest creates a triple-income strategy that compounds over time. In an era where most investors are chasing quick wins, this structured approach allows me to steadily accumulate wealth while limiting risk.
There’s also the psychological comfort of trading an ETF like QYLD. Unlike individual stocks that can face sudden collapses from earnings disappointments or company-specific news, QYLD is tied to the Nasdaq 100 index and built on a covered call strategy. This structure makes it more predictable and, in my opinion, a safer candidate for selling puts. It’s not about trying to capture lightning in a bottle but rather about generating reliable cash flow with defined risk.
In the end, my decision to sell a two-month LEAP put at QYLD’s $16 support was about more than just the $55 premium I collected. It was about layering multiple streams of return: premium income today, interest from cash tomorrow, and potential dividend income if assigned in the future. That’s why I view this strategy not just as an options trade, but as a disciplined wealth-building framework. For me, this is the power of combining income generation with strategic timing—and it’s why I keep coming back to selling puts at strong support levels@TigerStars @TigerEvents @Daily_Discussion @Wrtd @Daily_Discussion
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