You’ve covered the whole foundation: what an option is, why we sell rather than buy, the house rules, the Cash-Secured Put, sizing it safely, and how assignment turns into the Wheel. The last step is turning that knowledge into a calm, repeatable routine.
A simple weekly routine
- Review the handful of stocks and ETFs you’d genuinely own.
- Where one looks reasonably priced, check a 30–45 day Put around 0.20–0.30 delta.
- Confirm the cash is reserved and the size passes the "could I hold the assignment?" test.
- Sell it, set an alert at the strike, and move on with your week.
- Close winners early if you’ve captured most of the premium; if assigned, sell a Covered Call.
The pre-trade checklist
Run through this before every Cash-Secured Put. If any answer is "no," skip the trade.
- Do I want to own 100 shares of this stock at the strike?
- Have I reserved the full strike × 100 in cash?
- Is the strike a price I’d be happy to buy at?
- Is the premium worth the downside risk — not just attractive on its own?
- Is the bid-ask spread reasonable?
- Is there an earnings report or major event before expiration?
- What will I do if I’m assigned? If the stock drops sharply?
Coming soon: a one-page printable version of this checklist by email. For now, bookmark this lesson and run the list before every trade.
Where to go next
You’ve graduated the basics. When you’re ready to go deeper, the guides pick up where the course leaves off:
- How to choose a strike price — delta, probability and distance from price.
- The Greeks for option Sellers — delta, theta and vega in plain English.
- Reading an options chain — every column, explained.
- What happens when an option is assigned.
- Selling options through earnings — when the premium is and isn’t worth it.
And explore every tool on the calculators page, or find your starting strategy with the Strategy Finder.
Common beginner mistake
Jumping into advanced strategies too early. Spreads, condors and diagonals all add moving parts — and ways to lose. Get genuinely comfortable running Cash-Secured Puts and the Wheel first; the fancy stuff will still be there.
Key takeaways
- Turn the course into a routine: own-worthy stocks, a 30–45 day Put, reserved cash, calm management.
- Run the pre-trade checklist every time — a single "no" means skip the trade.
- Master the simple, defined trade before adding complexity; consistency is the edge.