To The Moon

Over the past year, my trading style has evolved into something that fits my personality, my risk tolerance, and my lifestyle goals. Instead of chasing big wins or predicting market direction, I focus on consistent, repeatable income. My objective is simple: generate daily cash flow of around $30 to $100 by selling cash-secured put options on highly liquid ETFs—primarily IBIT and IWM—with very short durations ranging from 2 days to 7 days.

This approach allows me to earn income frequently, manage risk tightly, and sleep well at night. It also integrates perfectly with my broader financial plan, where idle cash sits safely in money market funds earning about 3.9% annually, helping to cover daily expenses and forming part of my long-term plan for 2026 and beyond.

This article documents exactly how I do it, why I chose this method, and how it fits into my overall financial framework.

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What Is a Cash-Secured Put Option?

A cash-secured put is one of the most conservative option-selling strategies available.

When I sell a put option, I am agreeing to buy 100 shares of an underlying asset at a predetermined price (the strike price) if the option is exercised. The key word here is secured. Before placing the trade, I already set aside enough cash to buy the shares.

For example:

• If I sell a $46 IBIT put, I reserve $4,600 in cash.

• That cash is locked and cannot be used elsewhere.

• In exchange, I receive an option premium upfront.

There are only two outcomes:

1. The option expires worthless → I keep the premium.

2. I get assigned → I buy the shares at a price I already find attractive.

This structure removes leverage risk, prevents margin calls, and ensures that every trade is intentional. I am never forced into a position I did not already plan for.

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Why I Focus on IBIT and IWM

IBIT – iShares Bitcoin Trust ETF

IBIT is volatile, liquid, and trades heavy option volume. Volatility is not something I fear—it is something I monetize. High volatility increases option premiums, which is exactly what benefits an option seller like me.

I do not sell puts blindly. I sell puts at prices where I am comfortable owning IBIT. If assignment happens, I am holding an ETF backed by Bitcoin exposure at a discounted entry.

IWM – Russell 2000 ETF

IWM represents small-cap U.S. stocks and is one of the most actively traded ETFs in the market. Its options are:

• Tight spreads

• High liquidity

• Predictable price behavior in short timeframes

IWM is ideal for 2- to 5-day trades, especially during range-bound market conditions.

Together, IBIT and IWM provide diversification:

• IBIT captures crypto-driven volatility

• IWM captures equity market movement

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Why I Only Trade 2 to 7 Day Contracts

Time is the option seller’s best friend.

Short-dated options decay fast. This decay, known as theta, accelerates as expiration approaches. By focusing on contracts between 2 and 7 days, I benefit from rapid time decay without exposing myself to long-term uncertainty.

Key advantages:

• Faster premium collection

• Less exposure to macro events

• Higher annualized returns

• Ability to adjust weekly or even every few days

Instead of waiting months, I let time work for me every single week.

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How the $30 to $100 Daily Income Is Generated

I do not target a specific dollar amount per trade. I target high probability trades and allow the income to compound naturally.

A typical setup looks like this:

• Sell 1 cash-secured put

• Premium collected: $15 to $50

• Duration: 2 to 7 days

By repeating this process multiple times per week, the income adds up:

• One small premium daily → ~$30

• Two or three short-dated trades → $50–$100 days

Some days I do nothing. Some days I close early and redeploy capital. The flexibility is what keeps risk under control.

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Example: IBIT Cash-Secured Put Trade

Let’s take a real-world structure similar to what appears in my portfolio.

• IBIT trading around $49–$50

• I sell a $46 put expiring in 7 days

• Premium collected: ~$0.21 ($21)

That $21 on $4,600 of capital might look small at first glance. But when repeated:

• Weekly return ≈ 0.4%

• Monthly ≈ 1.6%

• Annualized ≈ 20%+ (excluding compounding)

And this does not include the 3.9% yield from money market funds holding the cash.

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Risk Management: The Core of My Strategy

Risk control matters more than profit.

Here is how I manage it:

• I never sell puts at prices I wouldn’t buy

• I avoid earnings weeks and major economic events

• I size trades conservatively

• I diversify across expiries and underlyings

Assignment is not failure. Assignment is simply moving from cash to shares at a planned price.

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What Happens If I Get Assigned?

If assignment occurs:

• I own the shares at a discount

• The premium collected reduces my cost basis

• I can then sell covered calls to generate more income

This creates a wheel-like strategy, but I do not force the wheel. I let it happen organically.

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Why I Keep Cash in Money Market Funds

Idle cash is not dead money.

All reserved capital for cash-secured puts sits in money market funds yielding around 3.9% annually. This does three things:

1. Generates passive income even while waiting

2. Preserves capital

3. Covers part of my daily living expenses

This dual-income structure—option premiums + money market yield—creates stability.

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Covering Daily Expenses and Planning for 2026

My trading income is not about lifestyle inflation. It is about sustainability.

Daily option income helps cover:

• Food

• Utilities

• Subscriptions

• Small discretionary spending

Money market interest adds another layer of predictability.

This structure forms the backbone of my 2026 financial plan, where I prioritize:

• Capital preservation

• Consistent income

• Flexibility over aggressiveness

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Why I Avoid Chasing Big Wins

Big wins come with big drawdowns.

My goal is not to beat the market in one year. My goal is to extract income from market inefficiency repeatedly. Selling short-dated options allows me to do exactly that.

Consistency compounds faster than speculation.

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The Psychological Advantage

Selling options aligns with how markets actually behave:

• Most options expire worthless

• Markets spend more time ranging than trending

• Volatility is often overpriced

This gives me a statistical edge rather than an emotional one.

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Final Thoughts

This strategy is not glamorous. It does not produce screenshots of massive overnight gains. What it does produce is reliable cash flow, controlled risk, and peace of mind.

By selling cash-secured put options on IBIT and IWM, using 2- to 7-day expirations, and parking capital in money market funds earning ~3.9%, I have built a system that supports both my present lifestyle and my future plans.

As I move into 2026, this framework remains my foundation—simple, disciplined, and repeatable.

@Daily_Discussion @Shernice軒嬣 2000 @TigerStars @MillionaireTiger @TigerEvents @LawrenceSG @ZhukovHatesPepsi @TigerClub