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

• A Market caught in the middle

• Even if it is for the short-term, we apparently have a ceasefire

• Private Credit faces redemptions, but Goldman doesn’t blink

• The Nasdaq-100 monopoly is finally getting challenged

• We’re still really looking like rates will hold at the April meeting

• Apple drops on headlines, not necessarily fundamentals

Thought Throttle

There is a lot of noise out there on options, with most of it pointing traders and investors towards heavy speculation.

“Big predictions! Big moves! Big wins!”

I think that selling options has some catch-up to do. When done strategically and with intention, using theta can be a more grounded approach.

Here are some reasons (10 reasons) I like selling options and I think you could too.

1) It Generates Income Without Needing Execution

This is a big appeal, obviously. Everywhere you look you see “passive income” this, “passive income” that.

The fact that options (with work and within reason) can provide a relatively stable stream of income is incredibly valuable.

We’re getting paid for taking on obligations we’re already comfortable with.

2) We Don’t Have to Be Perfect on Direction

We don’t need to know exactly where the stock is going. We just need to know what we’d like to do with it at different price levels.

There’s a lot more room to be “less wrong” and still come out ahead.

3) We Can Define Our Entry and Exit Prices

This is one of the main draws of options.

We decide at what price the stock is a good buy, and at what price it’s a good sell.

Then we structure a trade accordingly.

4) It Complements Long-Term Investing (Not a Replacement)

Sell options or invest long-term? Yes.

Option selling, at its best, is geared toward the long-term and pairs perfectly with our investments.

We stack income on top of targeted capital appreciation. We don’t throw out fundamentals—quite the opposite.

5) We Get Paid to Wait (And we aren’t glued to a screen)

These trades aren’t guesses on a chart.

They’re positions on businesses. They’re tied to a fundamental outlook and thesis on a company.

Once placed, we are usually rewarded for our patience—not constant action.

6) It Favors Probabilities Over Predictions

We’re not trying to call the exact move.

We’re working with ranges, likelihoods, and positioning.

Mentally, this is far more sustainable than living with speculation-induced nightmares.

7) We Can Tailor Trades to Our Exact Intent

If a stock is at $100 and I’d buy at $90, but don’t think it’s going above $110—there’s a trade for that.

Instead of just waiting and hoping, we can structure a position that reflects exactly that view. There is a remarkable level of fluidity and flexibility.

8) It Works Even When Markets Stall

Markets don’t trend all the time.

They chop. They stall. They go nowhere.

And in those environments, we can still collect premium. It may be less, but so is the risk.

9) It Encourages Process Over Emotion

Since we are using theta, a lot of our edge comes from letting the trades play out.

Over time, we’re rewarded for process and patience, rather than emotional, reactive decision-making.

This discipline, like the returns, compounds.

10) It’s Genuinely Engaging (Yes, Fun)

Definitely not the case for everyone.

But if you’re reading this, there’s a good chance you enjoy this stuff at least a little.

There’s just something to it.

And yeah—making money doesn’t hurt either.

All in all…

None of these reasons make it easy, and certainly not risk-free.

But it does make it intentional.

At its core, selling options is about aligning trades with what we already want to do—buy good businesses at better prices, sell them at levels we’re comfortable with, and get paid along the way.

Simple, not easy.

Thanks for reading.

“Good-To-Know’s”

Every option has a limited lifespan. The more time it has, the more opportunity it has to make a meaningful move.

As time passes, that opportunity shrinks.

Less opportunity → less value.

This loss in value is known as theta decay, and it accelerates as expiration approaches.

For the option seller, this is good, since we sell first.

We collect the premium, and as time passes, the premium naturally erodes (all else equal).

This allows us to buy the option back for less (again, all else equal).

Quote(s) I Like

Trade Mechanics

Let’s look at an opportunity for a cash-secured put in Apple Inc. (AAPL).

For this example, there could be many reasons that we (theoretically) want to enter a cash-secured put.

Apple has elevated IV (88th percentile), it has taken a hit down to its 200-day moving average, which we may view as an overreaction, etc.

Whatever the reason, if we would like the opportunity to pick up 100 shares of AAPL in the ~$230s, this could be the trade for us.

The strike below represents roughly a ~25-delta put expiring May 15, 2026.

Selling the $240 May 15 put for about $5.25 in premium would open us to the possibility of buying 100 shares at, effectively, $234.75/share.

With shares currently trading near $253.50, that represents roughly a 2.24% return on risk over 38 days, and about a 7.4% discount from the current price if assigned.

If the stock remains above $240 through expiration, the option expires worthless and we hold on to the premium. If the stock falls below the strike, we’re assigned and obligated to buy at $240 (effectively $234.75).

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.

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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.