Inside My First Options Trades of 2026: $2,517 in Income, Step by Step
“Stock options are risky.”
That’s what most people think.
But risk isn’t the enemy. Misunderstanding is.
Every financial instrument is just a tool.
Use it carelessly, and it can destroy years of hard-earned savings.
Use it correctly, and it can quietly compound wealth in the background.
For the past few years, I’ve been using stock options as income tools—not lottery tickets.
The goal isn’t excitement. It’s consistency.
The Results
Over the last 3 years, I’ve generated an average 12–13% annual return on capital set aside for options, using the simplest strategies available:
- Cash-secured (covered) puts
- Covered calls
In the first week of 2026 alone, this approach generated $2,517 in income.
Here’s the exact breakdown 👇
| Transaction Date | Expiry / Close Date | Call / Put | Symbol | No. of Contracts | Strike | Stock Price at Day of Trade | Premium Paid | Annualized Return |
|---|---|---|---|---|---|---|---|---|
| 2026-01-05 | 2026-Feb-6 | Put | META | 1 | 600.0 | $658.79 | $825 | 17.11% |
| 2026-01-05 | 2026-Feb-20 | Put | MSCI | 1 | 530.0 | $577.60 | $680 | 10.79% |
| 2026-01-05 | 2026-Feb-6 | Put | NVDA | 3 | 170.0 | $188.12 | $558 | 13.37% |
| 2026-01-05 | 2026-Feb-20 | Put | OZK | 2 | 45.0 | $47.09 | $257 | 25.84% |
| 2026-01-05 | 2026-Feb-6 | Call | SHOP | 1 | 187.5 | $166.21 | $197 | 11.24% |
| Total | $2,517 |
The 4 Principles I Never Break
This strategy works because it’s boringly disciplined.
Every trade must pass all four rules:
- Only sell puts on stocks I’m happy to own for 3–5 years
- Only sell at strike prices I’d be glad to pay
- Always stay fully covered(cash for puts, shares for calls)
- Only take trades with annualized returns above my target rate
All five trades above followed these rules—no exceptions.
A Walkthrough: The META Short Put
Let’s break down one trade to make this concrete.
1. Business quality
Meta is a global advertising giant with a rock-solid balance sheet, commanding ~20% of global digital ad market share.
I’m not worried about Meta disappearing in the next 3–5 years. In fact, it’s already part of my long-term portfolio.
2. Valuation discipline
My fair value estimate for Meta is around $600.
If the stock drops to that level, I’d be happy to buy more. That’s why I chose the $600 strike.
3. Capital safety
To sell this put, I set aside $600 × 100 = $60,000 in cash.
If assigned, I can comfortably buy the shares—no leverage, no stress.
4. Getting paid to wait
For committing that $60,000 until Feb 6, 2026, I received $825 in premium.
That’s a 17.11% annualized return for waiting for the stocks to come to my target purchase price!
The same logic applies to the other four trades.
Simple. Boring. Effective.
This strategy is stupidly simple.
The process is boring.
And yet, over the past two years, it has generated hundreds of thousands of dollars in additional income—quietly boosting my stock portfolio while I sleep.
No hype.
No predictions.
Just disciplined execution.
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See you on the other side.