Most people know one way to make money from a stock: buy it and hope the price goes up. Options add a second way: get paid now, while you wait for a price you like. Done carefully, that can mean a monthly income, and over the years, real long-term wealth.
Annual returns for four common investment types, over the last 10 years (2016-2026).
Inflation: US prices rose about 3.3% a year over the last 10 years, so $10,000 loses about $330 of buying power a year. At about 2.2%, savings fell behind.
Just to keep up with inflation, $10,000 needs to become about $13,836 in 10 years. Savings at about 2.2% reached only $12,431.
Example numbers to show how a monthly income adds up when you reinvest it, before taxes, fees and commissions. They are not a promise: some months lose money, and a bad year can cost you, just as it can a stock owner. A rental property also usually needs far more money to start (a deposit plus buying costs), and you cannot sell a small piece of it when you need cash. The last 10 years were strong for stocks and homes; over longer periods both have averaged less.
Sources: savings, 3-month US Treasury bill yield, 2016-2025 average (Federal Reserve) - most savings accounts paid this or less; rental property, home prices +6.3% a year (S&P Cotality Case-Shiller US index, July 2016 to July 2026) plus about 4% net rent (average gross rental yield 6.5% in 2025, less running costs); stocks, S&P 500 total return with dividends reinvested, 10 years to October 2026; inflation, US consumer prices 2016-2026.
Selling a put means getting paid to wait for a lower price.
A company you have researched and would happily own, if you can get it at a discount
If the stock is below $45 when the 35 days end, you buy 100 shares at $45
Yours to keep, no matter what happens to the stock price
You keep $4,500 aside in your account (100 × $45) in case you have to buy the shares. That is the "cash-secured" part. $120 on $4,500 is 2.7% in 35 days, or about 28% a year if you could repeat it all year.
This example pays more than the one above, where we used 1.5% a month. Most traders aim for about 1-2% a month, but results can be higher or lower.
If you own the shares*, you only make money if the price goes up. The put seller gets paid in three of these four. Example: a stock trading at $50 today, a $45 put sold for $1.20.
Same stock, same 35 days. What each one has made or lost by the end.
| Stock price at the end | $55 (up) | $50 (same) | $47 (a little down) | $40 (a lot down) |
|---|---|---|---|---|
| Buy 100 shares at $50costs $5,000 | +$500 | $0 | −$300 | −$1,000 |
| Sell the $45 put for $1.20$4,500 set aside | +$120 | +$120 | +$120 | −$380you own the shares at $43.80 |
The honest bit: if the stock shoots up, owning the shares wins, because the put only ever pays the $120. In every other case the put does better, and even in a big fall you lose less than the share buyer.
Stocks rarely move in a straight line. Over a single month, most of them drift sideways or a little up, and those are exactly the months a put seller gets paid. You do not need the stock to rise; you only need it not to fall a long way.
So only sell puts on companies you would be happy to own. Our 9 Wheel Trade Filters are built to find them.
The money for 100 shares stays in your account until the put ends. Size each trade to your account.
The most a put pays is its premium. You trade big wins for steadier, more frequent ones.