📈 My Daily IWM Cash-Secured Put Strategy: How I Consistently Scrap $10–30 a Day
Over the past few weeks, I’ve been running a simple but disciplined options strategy on IWM (iShares Russell 2000 ETF) — selling cash-secured puts (CSPs) to collect premium income safely and steadily. It’s not a get-rich-quick plan, but a slow, mechanical way to grow my account while staying protected with defined risk.
Currently, IWM trades around $252, and I’ve sold a 246 strike put expiring on December 31, 2025, collecting about $3.00 in premium per share. That’s $300 per contract, giving me a nice buffer and peace of mind that my position is safe unless the market drops more than 2–3%.
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💡 Why I Chose IWM
IWM tracks the Russell 2000 index, representing small-cap U.S. companies. These stocks are more volatile than large caps, meaning IWM options usually carry higher implied volatility (IV) — and therefore higher premiums.
That volatility works in my favor as an options seller. Even with a conservative strike far out-of-the-money, I can still collect a meaningful premium. For example:
• IWM at $252
• Sell PUT 246 (about 2.4% below current price)
• Premium: ~$3.00
• Annualized yield: around 15–20%, depending on expiry and volatility
To me, that’s a fair tradeoff between safety and income.
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🧠 The Mindset Behind My Strategy
My approach is systematic, patient, and repeatable. I’m not trying to predict market direction — instead, I’m being the “house” in the options market, collecting small amounts of premium day by day.
Here’s how I think about it:
• 🎯 Defined risk: I’m always ready to buy 100 shares of IWM at my strike price if assigned.
• 💵 Cash-secured: I always keep enough cash aside to cover the purchase (no margin).
• 📉 Statistical edge: Most options expire worthless. As a seller, I profit from time decay (theta).
• 🕒 Consistency: My goal is $10–$30 profit daily on average, not hitting home runs.
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⚙️ How I Structure My Trades
Every few days, I sell 1 or 2 put options depending on IWM’s volatility and trend. My goal is to stay below key support levels and use weekly or biweekly expiries (2–3 weeks out).
Here’s my general setup:
Step Action Example
1️⃣ Identify support zone $245–$247 area
2️⃣ Choose strike $246 PUT
3️⃣ Sell for premium ~$3.00 per contract
4️⃣ Hold 3–5 days Watch for 30–50% profit
5️⃣ Buy back or roll Close at $1.50–$2.00 or roll forward
This keeps my exposure short-term and lets me adapt quickly if the market moves.
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📊 My Recent Trades
Here’s a quick recap from my activity log over the last two weeks:
• Dec 5–6: Sold 246 PUT at $3.20, bought back at $3.10 ✅ small gain
• Dec 8: Sold again at $2.95, bought back at $2.72 ✅ solid scalp
• Dec 10: Re-entered another $246 PUT at $2.72 💪 currently open
Most of these trades generate between $10 to $30 net per round, depending on entry and exit. It may sound small, but over time it adds up beautifully.
For example:
• $20/day × 20 trading days = $400/month
• Compounded over 12 months = $4,800/year — all while keeping my capital safe and earning interest on the side.
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🧩 Why I Call It “Scrapping”
I like to call this method “scrapping” because it’s like picking up small, consistent profits — not flashy, but reliable. Every trade is a calculated move to scrape small edges off the market without overexposing myself.
It’s also a mental exercise in discipline. Selling puts requires patience — I’m not chasing price action or reacting emotionally. Instead, I set my strikes, collect my premium, and let time decay do its work.
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🧮 My Safety Buffer Explained
Let’s break down my current IWM setup numerically:
• Current price: $252
• Strike price: $246
• Premium collected: $3.00
• Effective breakeven: $243 (246 – 3)
That means I’m protected down to $243, or about 3.6% below current levels. IWM would have to drop more than that before I even start to lose money.
If IWM stays above $246 by expiration, I keep the full $300.
If it dips below, I’m happy to own 100 shares of IWM at an effective cost of $243 — a fair entry given the ETF’s long-term uptrend.
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🔁 Rolling and Adjustments
If the market turns against me, I simply roll my position:
• Buy back the current short put.
• Sell a new one with a later expiration or lower strike.
This allows me to extend time and collect more premium, reducing my breakeven price further. Rolling is one of the biggest advantages of selling puts versus just buying stock — I control the timing and entry.
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💬 Emotional Control and Patience
Trading is as much about psychology as it is about numbers. Every time I sell a put, I remind myself:
“You’re being paid to wait.”
Instead of reacting to every market swing, I use time to my advantage. I let theta decay chip away at the option’s value daily.
Some days, I close early for a few dollars profit. Other days, I let it ride longer. The key is staying emotionless and following my plan.
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📚 The Power of Repetition
This approach doesn’t need prediction — it needs repetition. The more trades I execute within my safety rules, the more the probabilities work in my favor.
Even if I only make $10 on some trades, my focus is on consistency. Over 2–3 weeks, that becomes a pattern of compounding.
When you think of each trade as a “brick,” every week adds another layer to the wall of steady income.
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🏁 My End Goal
Over the next few months, I plan to:
1. Keep selling 1–2 puts per week on IWM 🧱
2. Maintain $10–30 average daily profit 🪙
3. Slowly scale up position size once my system proves consistent 📈
4. Reinvest premium profits into IWM shares for long-term compounding 🔁
If I can sustain this rhythm, I’ll build both confidence and capital at the same time — without chasing risky trades.
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🌟 Final Thoughts
Selling cash-secured puts is one of the most underrated, low-stress income strategies in the market. It lets me:
✅ Earn income consistently
✅ Control risk precisely
✅ Enter great ETFs at lower prices
✅ Build confidence in market structure
My IWM 246 put at $3 feels safe, steady, and profitable — and that’s exactly how I like it. I don’t need big swings or massive bets. Just small, consistent wins that add up.
Day by day, trade by trade, I’m turning market noise into income — one $20 scalp at a time. 💼💪
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