Say Goodbye to “Roller Coaster”, Embrace “Money Printer”
If you’re a long-term stock investor, your mood must depend on K-line colors:
- 🔴 Drop: Can’t eat, anxious.
- 🟢 Rise: Don’t dare sell, afraid of missing out, anxious.
- ➡️ Sideways: Wasting time, anxious.
Notice? You’re always anxious. Because your returns completely depend on “stock price difference”.
But in the Silent Options community, we don’t really care about today’s stock price movements. Because our goal isn’t “catching that 10x stock”, but “building a 20%-30% annualized cash flow system”.
Today, I’ll introduce you to the option seller’s ultimate weapon — “The Wheel Strategy”.
Step 1: Want to Buy Stock? First Collect a “Waiting Fee” (CSP)
Suppose you want to buy 100 shares of Apple (AAPL), current price $150. Normal people buy directly at $150.
What do smart people do? They think: “Too expensive, I only want to buy if it drops to $140.” So, they sell a Put (put option) with strike price $140.
Then something magical happens:
- The broker immediately gives you a premium (say $200). This money goes straight into your pocket.
- If next Friday stock price doesn’t drop to $140: This $200 is free money. You didn’t get the stock, but you got paid.
- If next Friday stock price drops below $140: Perfect! You got the stock at your desired $140 low price, and you still have that $200 premium as cushion.
This is Cash Secured Put (CSP) — Buffett’s favorite “discounted stock buying method”.
Step 2: Holding Stock at a Loss? Then Collect “Rent” (CC)
Okay, now you have 100 shares of Apple. Normal people choose to “play dead,” praying it goes up.
What do smart people do? They treat these 100 shares as a “house” and rent it out. They sell a Call (call option) with strike price $160.
Then:
- The broker immediately gives you another premium (say $150).
- If next Friday stock price doesn’t reach $160: Stock is still yours, but you collected that $150 rent. Next week continue selling, continue collecting rent.
- If it surges above $160: Your stock gets sold at $160. You earned from the stock price rise, plus the rent.
This is Covered Call (CC) — the best retirement strategy for retail investors.
Step 3: Infinite Loop (The Infinite Loop)
See it?
- No stock: Sell Put to collect money, until you get assigned the stock.
- Have stock: Sell Call to collect rent, until the stock gets sold.
- After selling? Back to step 1, continue selling Put.
This is called The Wheel (Wheel Strategy).
This is a perfect closed loop. In this process, you don’t need to predict tomorrow’s movement, you just mechanically execute this cycle. As long as the US stock market stays open, this “money printer” can keep running.
Next Step: Build Your System Hands-On
By now, from Awakening 01’s “win rate”, to 02’s “risk control”, to 03’s “cash flow”. You’ve mastered all the theoretical foundations to become a “house”.
But “knowing” and “doing” are separated by ten thousand details:
- “Which stock should I use for Wheel?”
- “What strike price is suitable? Delta 0.3 or 0.2?”
- “What if earnings report crashes?”
Don’t worry. In the upcoming [Beginner Combat Course], we’ll leave theory and enter the real battlefield. I’ll open my trading software and teach you step-by-step to place your first sell order in life.
📝 Silent’s Note (Key Points)
- Don’t Want to Buy High: Using CSP (Sell Put) you can get assigned at your psychological price, plus collect money.
- Don’t Want to Hold Forever: Using CC (Sell Call) you can collect rent on holdings, lowering position cost.
- Spin It Up: Connect CSP and CC, and you have a “wheel strategy” you can play for life.
👉 Ready to Start Combat? Follow [Your Social Media/YouTube Channel], our video tutorials are coming soon. Or, click the link below to preview the beginner course outline.