Like many people in my early 30s, I wanted to find ways to supplement my income without working extra hours. The idea of making money work for me rather than me working for money sounded appealing, but the risks of trading felt intimidating. After dabbling in stocks for years, I stumbled upon options trading—and to my surprise, when done carefully, it became a consistent and relatively safe way to generate extra income.
In this post, I’ll walk you through how I’ve approached safe options trading strategies, the lessons I learned, and how you, too, can use options to earn extra money while minimizing risks.
Options are financial contracts that give you the right, but not the obligation, to buy or sell a stock at a set price within a specific time. Unlike buying shares directly, options let you control larger amounts of stock with less capital.
There are two basic types:
At first glance, options can feel like gambling, but when used conservatively, they can serve as tools for income generation and protection.
Learn more: Investopedia – Options Basics
I’ll admit—I made mistakes early on. My first options trade was buying a cheap call on Tesla, hoping for a moonshot. It expired worthless. Then I bought puts on a tech stock before earnings, only to see the stock surge. I quickly realized that speculation wasn’t a strategy—it was gambling.
That’s when I started researching safe, income-based options strategies—the kind professionals use. I discovered three that changed everything:
Let’s break each down.
If you already own shares of a company, you can sell a covered call—agreeing to sell your stock at a higher price in exchange for an upfront premium.
For example, I owned 100 shares of Apple (AAPL) at $160. I sold a call option with a $175 strike price for $2 per share (or $200 total). If Apple stayed below $175 by expiration, I kept both my shares and the $200. If Apple rose above $175, I’d sell my shares at that higher price, still locking in profits.
This strategy is perfect for long-term investors looking to generate passive income without selling their core holdings.
Personal note: Writing covered calls on my Amazon (AMZN) shares brought in over $1,000 in premiums last year—money that helped fund a family vacation.
CBOE – Covered Call Strategy Overview
Another low-risk strategy is selling cash-secured puts. This means you agree to buy a stock at a lower price than today, and in exchange, you collect an upfront premium.
For instance, I wanted to buy Disney (DIS) but thought the stock was a little expensive at $105. Instead, I sold a put option with a $95 strike price and received $3 per share ($300 total). Two things could happen:
Essentially, I got paid to wait for the stock at my desired price.
Personal note: This approach helped me build my portfolio of dividend stocks without chasing market highs.
The Options Industry Council – Selling Puts
When I became more comfortable, I learned about iron condors—a strategy that profits from low volatility. It involves selling both a call spread and a put spread on the same stock or ETF.
Here’s how I used it: I set up an iron condor on the S&P 500 ETF (SPY). I bet that SPY would stay within a certain range over the next month. As long as it did, I pocketed the premiums from both sides.
This strategy requires more moving parts, but it can deliver steady, low-risk returns in flat or stable markets.
Tastytrade – Iron Condor Explained
(Note: I lost a lot of money in an iron condor during the ‘liberation day’ tariff-related market sell-off, so exercise caution.)
The biggest lesson I learned: Options are not risk-free. Even with safe strategies, there are risks of assignment, market swings, and lost premiums. Here’s how I manage risk:
Think of it like driving: options trading can be safe if you follow the rules of the road.
After shifting from speculative bets to safe strategies, I now generate $500–$1,000 per month in extra income from options. It’s not “get rich quick,” but it’s meaningful—helping cover groceries, trips, and even reinvestment into my portfolio.
The real win? Peace of mind. I’m no longer chasing meme stock rockets or stressing over market crashes. Instead, I use structured strategies to grow wealth gradually.
Options aren’t for everyone. They require discipline and a willingness to learn. But if you:
…then safe options trading could be a fantastic way to put your portfolio to work.
I started trading options out of curiosity, but what kept me going was the realization that small, consistent gains can add up to big financial changes over time. By focusing on safe strategies like covered calls, cash-secured puts, and iron condors, I turned options into a reliable side income stream—without the stress of day trading.
If you’re curious, start small. Try selling a covered call on stocks you already own or writing a cash-secured put on a stock you’d love to buy at a discount. Track your progress, and don’t be afraid to learn from mistakes.
Because at the end of the day, it’s not about gambling—it’s about using smart tools to build financial freedom.
The post Safe and Secure Options Trading for Earning Extra Money appeared first on One Cent At A Time.
In this post, I’ll walk you through how I’ve approached safe options trading strategies, the lessons I learned, and how you, too, can use options to earn extra money while minimizing risks.
What Is Options Trading?
Options are financial contracts that give you the right, but not the obligation, to buy or sell a stock at a set price within a specific time. Unlike buying shares directly, options let you control larger amounts of stock with less capital.
There are two basic types:
Call options: The right to buy shares at a certain price.
Put options: The right to sell shares at a certain price.
At first glance, options can feel like gambling, but when used conservatively, they can serve as tools for income generation and protection.
My Turning Point: From Gambling to Strategy
I’ll admit—I made mistakes early on. My first options trade was buying a cheap call on Tesla, hoping for a moonshot. It expired worthless. Then I bought puts on a tech stock before earnings, only to see the stock surge. I quickly realized that speculation wasn’t a strategy—it was gambling.
That’s when I started researching safe, income-based options strategies—the kind professionals use. I discovered three that changed everything:
Covered Calls
Cash-Secured Puts
Iron Condors (for advanced stability)
Let’s break each down.
Covered Calls: Earn While You Hold
If you already own shares of a company, you can sell a covered call—agreeing to sell your stock at a higher price in exchange for an upfront premium.
For example, I owned 100 shares of Apple (AAPL) at $160. I sold a call option with a $175 strike price for $2 per share (or $200 total). If Apple stayed below $175 by expiration, I kept both my shares and the $200. If Apple rose above $175, I’d sell my shares at that higher price, still locking in profits.
This strategy is perfect for long-term investors looking to generate passive income without selling their core holdings.
Cash-Secured Puts: Getting Paid to Wait
Another low-risk strategy is selling cash-secured puts. This means you agree to buy a stock at a lower price than today, and in exchange, you collect an upfront premium.
For instance, I wanted to buy Disney (DIS) but thought the stock was a little expensive at $105. Instead, I sold a put option with a $95 strike price and received $3 per share ($300 total). Two things could happen:
If Disney stayed above $95, I kept the $300 without buying shares.
If Disney dropped to $95, I bought it at a discount, plus I still kept the $300 premium.
Essentially, I got paid to wait for the stock at my desired price.
Iron Condors: Advanced but Safe (?)
When I became more comfortable, I learned about iron condors—a strategy that profits from low volatility. It involves selling both a call spread and a put spread on the same stock or ETF.
Here’s how I used it: I set up an iron condor on the S&P 500 ETF (SPY). I bet that SPY would stay within a certain range over the next month. As long as it did, I pocketed the premiums from both sides.
This strategy requires more moving parts, but it can deliver steady, low-risk returns in flat or stable markets.
(Note: I lost a lot of money in an iron condor during the ‘liberation day’ tariff-related market sell-off, so exercise caution.)
Risk Management: The Secret to Longevity
The biggest lesson I learned: Options are not risk-free. Even with safe strategies, there are risks of assignment, market swings, and lost premiums. Here’s how I manage risk:
Never sell naked calls (unlimited risk).
Keep cash aside for cash-secured puts.
Trade liquid stocks/ETFs (SPY, QQQ, AAPL, MSFT) for tight spreads.
Use small position sizes (no more than 5% of portfolio in one trade).
Set stop-losses or adjust positions when markets move unexpectedly.
Think of it like driving: options trading can be safe if you follow the rules of the road.
My Results After 2 Years
After shifting from speculative bets to safe strategies, I now generate $500–$1,000 per month in extra income from options. It’s not “get rich quick,” but it’s meaningful—helping cover groceries, trips, and even reinvestment into my portfolio.
The real win? Peace of mind. I’m no longer chasing meme stock rockets or stressing over market crashes. Instead, I use structured strategies to grow wealth gradually.
Who Should Try Safe Options Trading?
Options aren’t for everyone. They require discipline and a willingness to learn. But if you:
Already invested in stocks
Want to generate a consistent income
Can handle a learning curve with patience
…then safe options trading could be a fantastic way to put your portfolio to work.
Final Thoughts
I started trading options out of curiosity, but what kept me going was the realization that small, consistent gains can add up to big financial changes over time. By focusing on safe strategies like covered calls, cash-secured puts, and iron condors, I turned options into a reliable side income stream—without the stress of day trading.
If you’re curious, start small. Try selling a covered call on stocks you already own or writing a cash-secured put on a stock you’d love to buy at a discount. Track your progress, and don’t be afraid to learn from mistakes.
Because at the end of the day, it’s not about gambling—it’s about using smart tools to build financial freedom.
The post Safe and Secure Options Trading for Earning Extra Money appeared first on One Cent At A Time.