Generate Passive Income by Selling Stock Options - Inactive Investments

Generate passive income selling stock options on companies you own or want to own. This passive investment strategy for accredited investors can give you an extra ‘dividend’ each week or month on company shares already in your portfolio, or by making a promise to buy shares of a company you want to own at the price you want to own it. For a primer on stock option contracts, read Introduction to Stock Options below.

Introduction to Stock Options

This introduction to stock options includes definitions, the general idea of how stock option contracts work, and examples of a Put Option contract and a Call Option contract.

Using Stock Option Contracts as a Passive Income Sidehustle

Earnings calls will increase the premium on option contracts. Capture that to increase your return selling option contracts as a passive income sidehustle.

How to Sell a Put Option Contract for Passive Income

Sell put option contracts for passive income

After the earnings call this week I am continuing to sell put option contracts as a passive income strategy for an accredited investor.

Weekly Options Trade to Generate Passive Income – 11-02-23

Upcoming dividends can increase the return when selling weekly options contract to generate passive income

Here is how I used the upcoming dividend to increase the return of my weekly options trade to generate passive income.

Sell Put Options to Collect a Dividend for Passive Income 11-08-23

Use put options to get shares of a company to collect a dividend as passive income

Here is how I used the upcoming dividend to increase the return of my weekly options trade to generate passive income.

Work from Anywhere Passive Income Trade – 11-21-23

A work from anywhere passive income trade can factor in the expert fund managers who are buying the company, upcoming dividends and charts.

What to do When a Put Option Gets Assigned – 12-01-23

Option Chain for weekly put option trade for passive income

What to do when a put option gets assigned. I can sell a call at the strike the shares were assigned, sell another put at a lower strike, or b oth.

What’s a Good Return on a Passive Income Investment – 12-11-23

A good annualized return on a passive income investment over 20%

What’s a good annualized return on a passive income investment? This example shows a 27%+ annualized return on a passive income investment.

How to Roll a Call Option Contract- 12-15-23

How to roll a call option contract that is in the money

How to roll a call option contract for passive income when it goes in the money so the shares do not get called away.

Roll an In The Money Call Option – 12-21-23

Roll an In The Money call option as a weekly options trade for passive income

Roll an In The Money call option contract as a weekly options trade for passive income.

Roll a Put Option t o Avoid Assignment – 01-05-24

How to roll a put option contract to avoid assignment

Roll a put option contract to avoid assignment when the option contract goes In The Money.

Selling Puts on a Market Down Day – 01-16-24

OXY Option Chain - selling puts for passive income

Selling puts on a market down day can yield more premium than the same strike and distance on a market up day.

Reduced Cost Basis per Share Calculator

Here is the tool we use to figure our reduced cost basis per share after selling puts and calls to generate passive income.

Selling Options for Weekly Income 2-2-24

Selling options for weekly income as a passive income strategy for accredited investors

Selling options for weekly income is a passive income strategy for accredited investors.

Sell Put Options Through Earnings 2-9-24

Sell put options through earnings for extra premium that can reduce your cost basis per share

Selling put options through the earnings call will generate more premium than normal. It can enhance the return on a weekly options trade for passive income.

Scalable Sidehustle for Accredited Investors 2-23-24

Scalable sidehustle for accredited investors

Using a strangle option strategy is a scalable sidehustle for accredited investors that can work from anywhere.

Earn Passive Income with a Strangle Option 3-08-24

Earn passive income with a strangle option

This strategy for setting up weekly strangle options can earn passive income on a weekly basis.

Options Called Away – 03-22-24

When a covered call goes in the money we can have our options called away or roll the covered call to a higher strike price so we can keep the shares.

Why We Watch Bill Ackman – 04-05-24

Watching Hedge Fund Manager Bill Ackman’s trades can point us to a handful of quality companies and when to buy them.

When to Enter a Position in a Company-04-29-24

We decide when to enter a position based on several factors including including market dominance, leadership strength, and valuation.

Sell a Cash Secured Put for Passive Income – 05-21-24

Generate passive income by selling a cash secured put. Learn how to trade options with this passive income strategy.

Put Option Expires Worthless – 06-10-24

When a put option expires worthless we keep the premium and do not buy the shares. This simple options trade shows an example.

Routine Options Trade – 06-21-24

This routine options trade can generate passive income on a weekly basis using Warren Buffett’s investment strategy.

Put Expired Worthless – 07-03-24

Generate passive income selling stock options. Our put expired worthless. Now we’ll sell another cash secured put option for passive income.

Income Generation Options Trade – 07-15-24

Gain insights on this income generation options trade with this wheel trade example. This effective strategy can increase your earnings potential.

Earn Passive Income in a Small Town Selling Stock Options – 07-26-24

Discover how to earn passive income in a small town using options. Learn to minimize risk with effective wheel trading strategies.

Why Tranches are Important – 08-02-24

Learn why tranches are important in options trading. Discover how tranches help manage risk and improve investment returns.

Weekly Options Trade – 08-16-24

How we maximized returns with our weekly options trade on OXY using a strangle option strategy and the coming dividend.

Options Trade for Cash Flow- 08-23-24

Learn how we used an options trade for cash flow to reduce our cost basis per share while waiting to collect a dividend.

How We Used an Option Strangle to Open a Position- 08-30-24

Here is how we used an option strangle to open a position in a company while reducing our cost basis per share.

Options Trading Basics – 09-16-24

Key factors in options trading basics include the annualized return of the capital we risk on the trade and cost basis per share.

Wheel Option Trade – 09-20-24

This explanation of a wheel option strategy uses a put and a call to build equity in the shares of a company without selling shares.

Options Trading Tutorial – 10-02-24

This options trading tutorial shows how we used a put option to reduce the cost basis of shares we already own .

Use a Short Strangle to Reduce Cost Basis – 10-11-24

See how we use a short strangle to reduce cost basis per share. The option premium on both sides of the trade quickly reduces our cost basis.

Options Trading Strategy – 10-25-24

This options trading strategy helps earn passive income by promising to buy a company we want to buy at the price we want to buy it.

Generate Passive Income from Home – 11-12-24

Here is how we used stock options to generate passive income from home without buying more shares of a company.

Put Option Contracts for Passive Income

Why I sold put option contracts for a passive income strategy as an accredited investor

Why I sold put option contracts on BAC for a passive income strategy as an accredited investor.

Pick a Put for Passive Profit

Pick a put using trend lines with support and resistance.

Here are steps to pick a put that is likely to be profitable when I sell puts for passive income.

How to Roll a Put Option for Passive Income – 10-27-23

Roll an option contract to generate passive income selling stock options

When an option contract goes in the money I can roll the contract to a different strike on a different date to avoid assignment.

How to Close a Weekly Options Trade Early at a Profit – 11-06-23

Close a weekly options trade early at a profit

When the trading price of an option contract goes my way I can close the stock option contract early at a profit to capture most of the gain and free up the capital for another passive investment.

Sell Put Option Contracts for Double the Premium – 11-16-23

Use upcoming dividends to sell put option contracts for double the premium

My weekly options trade to generate passive income includes using the upcoming dividend to sell put option contracts for double the premium.

Weekly Passive Income Trade – 11-30-23

Stock option chain for a weekly passive income trade

This weekly passive income trade is a scalable side hustle investment strategy so I can work from anywhere.

Weekly Options Trade for Passive Income – 12-08-23

This weekly options trade for passive income is a passive investment strategy for accredited investors to use options premium for income.

Weekly Options Trade for Passive Income on OXY – 12-12-23

This weekly options trade for passive income is a passive income strategy for accredited investors who want to work from anywhere.

Another Weekly Options Trade for Passive Income on OXY – 12-19-23

Option Chain to use a weekly option trade for passive income

This put option contract is a weekly option trade strategy to help accredited investors generate passive income.

Sell a Put as a Weekly Options Trade – 01-02-24

Sell a put as a weekly options trade for passive income

Sell a put option contract as a weekly options trade for passive income.

Why We’re Taking the Shares – 01-12-24

Recent Guru Trades of OXY

Why we’re taking the shares when our put option contract went In The Money.

Option Contract Annualized Return Calculator

This tool calculates the annual return of a short-term option contract.

Put Option Contract Expired Out of the Money – 1-26-24

Put option contract expired out of the money and reduced basis per share

Our put option contract expired out of the money, so we’ll sell the put again as a weekly option trade for passive income.

Sell Calls on a Market Up Day – 2-6-24

Sell calls on a market up day to reduce cost basis per share

We sell calls on a market up day to get more premium for our call option contracts. That extra premium will reduce our cost basis per share.

Sell a Strangle to Reduce Cost Basis – 2-16-2 4

We can sell a strangle to reduce our cost basis per share, which means we sell a put and call on the same company at diff erent strikes.

Roll One Leg of the Option Trade – 3-01-24

Roll one leg of the strangle option strategy

Roll one leg of the option trade when it goes in the money if we want to keep our shares to earn passive income collecting the dividend.

Produce Passive Income Selling Options – 3-15-24

Produce passive income selling options

Learn how to produce passive income selling stock options. Discover the potential earnings from selling put and call options.

Buy to Close an Option Contract – 04-05-24

Buy to close an option contract

Here are several factors we consider when we deciding if we should buy to close an option contract that we sold to open.

Sell a Strangle Option for Passive Income – 04-18-24

Sell to open a call option and a put option to generate passive income with a strangle option strategy.

Sell to Open a Put Option Contract – 05-17-24

Master the technique of selling to open a put option contract and gain insights into the strategy and risks of options trading.

Sell to Open a Put Option for Cash Flow – 05-31-24

Learn how to sell to open a put option contract for cash flow. This lucrative strategy can generate passive income through options trading.

Simple Options Trade – 06-14-24

This simple options trade strategy can generate passive income weekly by selling a cash secured put option contract.

Option Wheel Trade – 06-27-24

Learn how to optimize your option trading with the option wheel trade strategy. Generate passive income and potentially acquire shares of a company you like.

How We Opened a Position – 07-10-24

Learn how we opened a position and used options to reduce our costs basis and improve our potential profit.

Put Option Contract for Passive Income – 07-19-24

Learn how to generate passive income using put option contracts in the stock market. Minimize risk and maximize profits with this guide.

Easy Trade for Options Traders – 07-29-24

This easy trade for options traders has been generating a consistent annualized return over 20% and can be done by working remotely.

Easy Trade for Today – 08-09-24

This easy trade for today is selling a put and a call on the same company for passive income and to reduce our cost basis.

Wheel Trade – 08-19-24

Learn to execute a wheel trade to reduce your cost basis and generate income by selling cash secured puts and covered calls.

How We Find Good Companies to Trade – 08-27-24

We use the quarterly 13Fs to help us find good companies to trade by watching what the experts are buying and selling.

How We Get Shares to Collect the Dividend – 09-06-24

Learn how we used a put option to get shares to collect a dividend. Then we sold to open another put option to reduce our cost basis.

Example of a Profitable Wheel Option Trade – 09-19-24

This example of a profitable wheel option trade shows how to roll a call option and sell a put to generate cash flow from options premium.

Ratio Put to Reduce Cost Basis – 09-27-24

This example walks through how we used a ratio put to reduce our cost basis per share.

How to Roll a Call Option – 10-04-24

Here we walk through how to roll a call option contract that has gone in the money so we can reduce our cost basis per share.

Options Trading Article – 10-25-24

This options trading article shares a method for generating weekly cash flow using a cash secured put option contract.

Profitable Options Trade – 11-01-24

Here is how we rolled a cash secured put and sold to open two covered calls for our weekly profitable options trade.

Options Expired Worthless Out of the Money – 11-18-24

Our weekly options trades expired worthless out of the money last week. Here are the new option contracts we are selling for cash flow.

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