Market Movements

^{*Weekly Return is calculated as market open of the previous Wednesday, to market close this Tuesday (yesterday); Current Level is Tuesday’s (yesterday’s) close.}

Weekly Rollout

• The Market is up, with Thanksgiving right around the corner

• Last week, it was a 50-50; Now, Fed rate cut predictions sit at about 85-15

• X reveals where accounts are based, and some people aren’t happy

• The crypto crash sets its sights on President DJT

• Eli Lilly becomes the first healthcare stock to hit $1 trillion market cap

• Michael Burry is so sure of an AI bubble, he started a newsletter about it

• Trump signs his government AI initiative, Genesis Mission

• Home sellers are taking their homes off the market…quickly

“Good-To-Know’s”

If we owned 30 different tech stocks, we might have diversified away the company-specific risk, but not the sector-specific risk. If Apple were to go bankrupt (lol), we still own Meta, Nvidia, Google, and others—but if the entire tech industry takes a hit, it hurts all of our investments.

This diversification is similarly important when we are using options. Not only is it a good idea to mix trades across sectors, companies, etc., but we also want to diversify across lines of volatility, expiration, etc. Instead of visualizing it as trading different stocks and options, visualize it as trading different risks. Diversification should be intentional, not just variety for the sake of variety.

Quote(s) I Like

Thought Throttle

So many people ask, “How can I become a millionaire doing X?”

But I don’t think that’s really the question. There’s always something underneath.

I want to be a millionaire… “so that I never have to work again,” or “so that I can buy what I want,” or even, “so that I can be financially free.”

The truth is, the goal is rarely the million. It’s what the million represents. Freedom, security, autonomy. But this doesn’t just come from hitting a number, but from building powerful habits that compound.

For most people, that simply looks like setting money aside and regularly contributing to retirement accounts. In that process, consistency matters far more than chasing short-term outperformance. Ironically, consistency is the way you maximize returns.

Options selling works the same way. It’s not about outsized wins, but repeatable ones. Selling time, managing risk, and letting the math do its job.

Historically, the stock market returns about 10% to 12% per year. If we take this as the base, let's see how drastically our accounts are affected by slight increases in return through small, but consistent boosts through selling options.

We can compare the base return to the base plus an additional .5% per month from the premiums, along with a scenario where we make an additional 1% per month from premiums.

Let’s Have a Look…

Even small bumps in monthly performance create huge separations over time. The base 10% return grows steadily, but adding 0.5% per month quintuples (5x) the 30-year outcome. If you can manage to add 1% per month, the $10,000 becomes over $4.6 million.

And the divergence shows up fast. At year five, the lines just start to separate. By year ten, they’re far apart. By year twenty and thirty, they’re not even close.

And the takeaway isn’t to chase big returns. It’s that small, steady edges, applied consistently, create outcomes most people don’t think are possible.

So, When Would We Become Millionaires?

Assuming just the base/passive return of 10%, we would become a millionaire by year 49. Yes, there is no doubt that this is a long time, but this assumes no additional investments.

Then, we have the scenario where we’re able to make a 0.5% return per month using options. We would hit our goal in year 30. This cuts down our TTM (Time-to-Millions) by almost 20 years. Massive.

Finally, there is the scenario where we could consistently make 1% per month from options. This would make us a millionaire in year 22. Another 8 years off.

Remember…

It never feels fast while you’re going through the motions (especially early on), but disciplined compounding remains the most dependable route to seven figures. The time will pass anyway, so how will you use it?

Also, it is worth mentioning that as your account grows, these returns won’t stay perfectly linear. A 1–2% month on a small account is a very different game than a 1–2% month on a six-figure account. A bigger ship is harder to steer. Your percentage return may taper, but the dollar return grows.

And that’s why the whole game eventually becomes less about chasing returns and more about staying consistent enough to let compounding keep doing its work.

Eventually, there is a mindset shift from “How do I become a millionaire?” to “How long can I stay disciplined enough to become one?”

Most people do not lose because of the strategy. They lose because they quit the compounding too early.

Stick with it. Onward and Upward.

Trade Mechanics

AMD. If we were bullish, here’s what we could do.

1) A long-dated LEAP call, 2) a collar that protects downside while capping upside, and 3) a cash-secured put.

AMD is currently trading around $206.13. Let’s see how they stack up side-by-side:

The LEAP call is by far the most leveraged play. We’re putting up $7,605 for the potential returns of 100 shares for a little over a year, with no upside cap. The trade-off is the breakeven. AMD needs to push past $231.05 by December 2026 to justify the cost.

The collar takes the opposite approach. We buy 100 shares outright and use options to build a buffer. The long put at $192.50 creates a defined floor, while the short call at $225 caps how much we can make.

Our max loss happens at or below $192.50, which is when the put begins counterbalancing the losses on the shares. For this protection, we forgo anything above $225.

The cash-secured put is probably the route you’ve heard us, Theta Throttle, mention most. Selling the $190 put brings in $945 in premium, reducing our effective entry to $180.55. If AMD stays above $190, we pocket the premium.

If it drops below, we’re assigned 100 shares at a substantial discount. This super-simple, income-first approach works well if we want to own AMD but prefer to get paid to wait.

In Summary…

All three trades express a bullish outlook, but the temperament they require is different. And as always, if we can’t confidently explain the risk, reward, and breakeven to someone with zero options experience, we probably don’t understand it well enough to size it properly.

This is for educational purposes only—not a trade recommendation. Remember to always do your own due diligence and consult a financial advisor before making investment decisions.

To All Theta Throttle Subscribers…

One of the hardest parts of putting together each edition of Theta Throttle is deciding what to write about. Seriously—if there’s a topic you’re curious about or something you want me to dive into, just reply to this email. There’s a very good chance it’ll become its own edition. Let’s build.

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Disclaimer

The information provided in this newsletter is sourced from reliable channels; however, we cannot guarantee its accuracy. The opinions expressed in this newsletter are solely those of the editorial team, contributors, or third-party sources and may change without prior notice. These views do not necessarily reflect those of the firm as a whole. The content may become outdated, and there is no obligation to update it.

This newsletter is for informational purposes only and does not constitute personal investment advice. It is not intended to address your specific financial situation and should not be construed as legal, financial, tax, or accounting advice, or as a recommendation to buy, sell, or hold any securities. No recommendation is made regarding the suitability of any investment for a particular individual or group. Past performance is not indicative of future results.

Options come with inherent risks. We strongly advise you to consult with a financial advisor before making any investment decisions, including determining whether any proposed investment aligns with your personal financial needs.