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Insights/Money, Mindset & Performance/Options Trading

Last updated: July 28, 2026•32 entries

Encyclopedia

Options Trading

Every field-tested playbook, breakdown, and receipt Fat Wallet Sales has published on options trading. Deep dives, video walkthroughs, and tactical scripts - updated as we run new experiments.

Articles

32

Video walkthroughs

32

Read time

155 min

Latest entry

Options Trading

Options Trading Risk Management Rules for Every Trader

Implement rigorous risk management in options trading by strictly adhering to position sizing rules, setting clear stop-losses and profit targets, and diversifying your portfolio to protect capital and ensure long-term sustainability.

Jul 28, 2026•8 min read•▶ Video included

All entries

Covered Calls on a Small Account - Realistic Monthly Returns

Covered calls on a small account mean owning 100+ shares and selling call options for premium. Focus on affordable, stable stocks to generate realistic, consistent monthly income while understanding the inherent risks and opportunity costs.

3 min▶Read →

The Wheel Strategy: Income-Generating Options Trading for 2026

The Wheel Strategy for options trading generates consistent income by systematically selling cash-secured puts, acquiring desired stocks at a discount, and then selling covered calls against those shares to collect further premiums.

3 min▶Read →

Options Trading For Beginners: The 3 Strategies That Print Cash

Options trading for beginners doesn't have to be complex or high-risk. Master covered calls to generate income from stocks you own, use cash-secured puts to earn premiums while waiting to buy desired stocks at a discount, and deploy iron co

7 min▶Read →

Why Most Options Traders Blow Up Accounts in Year One

Most options traders blow up their accounts in year one due to a combination of excessive leverage, a lack of understanding of options fundamentals like the Greeks, and poor risk management. Avoiding these common mistakes requires disciplin

3 min▶Read →

Why Most Options Traders Blow Up Accounts in Year One

Most new options traders fail within a year due to over-leveraging, poor risk management, and a fundamental misunderstanding of options Greeks and market dynamics, leading to account blow-ups.

3 min▶Read →

Why Options Traders Blow Up Accounts in Year One

Most options traders fail within their first year due to over-leveraging, poor risk management, and emotional decisions driven by FOMO and unrealistic expectations. Success requires strict discipline, understanding implied volatility, respo

6 min▶Read →

Options Trading Risk Management Rules for Every Trader

Implement rigorous options trading risk management: cap risk at 1% of capital per trade, maintain strict position limits, and use unbreakable stop-losses. Prioritize capital preservation over chasing outsized gains to survive market volatil

6 min▶Read →

Covered Calls on a Small Account - Realistic Monthly Returns

Covered calls are a known strategy to generate income by selling options on 100 shares of a stock you own. For small accounts, realistic monthly returns are modest, demanding careful stock selection and continuous risk management to avoid c

3 min▶Read →

Covered Calls on a Small Account: Realistic Monthly Returns

Covered calls on a small account focus on collecting consistent premium from owning 100 shares and selling call options, aiming for realistic 1-3% monthly returns rather than hype. It's a disciplined strategy for income generation, requirin

3 min▶Read →

Options Trading For Beginners: 3 Strategies That Generate Income

Options trading for beginners doesn't have to be complex. Focus on three income-generating strategies: covered calls for stocks you own, cash-secured puts for stocks you want to buy, and iron condors for sideways markets. These strategies p

7 min▶Read →

The Wheel Strategy: Income Trading Options in 2026

Flashcard review of Wheel Strategy options.

3 min▶Read →

The Wheel Strategy in 2026: How Income Traders Print Cash Now

The wheel strategy is a powerful income-generating options playbook involving selling cash-secured puts and then covered calls. It leverages market volatility for consistent returns, requiring discipline and smart stock selection.

6 min▶Read →

Options Trading for Beginners: 3 Strategies That Pay

Beginners can leverage options trading with three core strategies: covered calls to generate income on owned stock, cash-secured puts to acquire stock at a discount, and credit spreads for defined-risk, defined-profit plays. These aren't ga

5 min▶Read →

Covered Calls on a Small Account: Realistic Monthly Returns

Covered calls on a small account focus on generating modest monthly income through conservative options strategies, requiring ownership of 100 shares per contract and careful stock selection to manage risk and maximize consistent premiums.

3 min▶Read →

Options Trading For Beginners: Three Strategies That Pay Big

Options trading for beginners teaches you to generate income or enhance portfolio returns using strategies like covered calls, cash-secured puts, and credit spreads. It's about calculated risk and probability, not get-rich-quick schemes, fo

3 min▶Read →

Covered Calls on a Small Account: Realistic Monthly Returns

Covered calls in a small account offer realistic monthly returns, typically 1-3%, by selling call options on 100 shares of stock you own. It's a consistent income strategy for disciplined traders, focusing on stable stocks and managing expe

7 min▶Read →

Why Most Options Traders Blow Up Accounts in Year One

Most options traders fail within their first year due to overleveraging, misunderstanding time decay (theta) and implied volatility, and succumbing to psychological biases like FOMO. Success requires strict risk management, a clear trading

6 min▶Read →

Covered Calls: Real Monthly Returns on a Small Options Account

Demystify covered calls for small accounts: Learn how to generate realistic monthly income by selling call options on existing stock holdings. Focus on disciplined stock selection, managing strike prices, and understanding key metrics to ma

3 min▶Read →

Covered Calls on a Small Account: Realistic Monthly Returns

Covered calls are a strategy to generate modest, consistent monthly income from your stockholdings by selling the right to buy your shares. For a small account, expect 0.5-1.5% monthly return on covered capital. It's about slow, steady gain

7 min▶Read →

Options Trading Risk Management Rules Tattoo on Your Arm

Implement non-negotiable options trading risk management rules like the 2% capital risk limit and strict stop-losses to protect your capital and ensure longevity in the market, understanding that discipline outweighs chasing profit.

3 min▶Read →

Covered Calls on a Small Account: Realistic Monthly Returns

Covered calls on a small account focus on generating consistent, modest cash flow by selling options against stock you own, capping upside for reliable premium. This low-risk strategy requires choosing stable, dividend-paying stocks and dis

3 min▶Read →

Why Most Options Traders Blow Up Their Account in Year One

Most options traders blow up their accounts in year one due to unchecked leverage, poor risk management, and emotional trading. Survive by mastering position sizing, implementing strict stop-losses, understanding options greeks, and maintai

7 min▶Read →

Covered Calls: Realistic Monthly Returns on a Small Account

Covered calls can offer modest monthly income for small accounts, but require owning 100 shares of a stable stock, imposing capital constraints. Expect realistic returns of 0.5-2% per month on your invested capital, focusing on low-volatili

7 min▶Read →

Options Trading Risk Rules: Tattoo These on Your Arm

Implement rigorous risk management in options trading by never risking more than 1% of your capital per trade and always using stop-loss orders. Prioritize position sizing over market prediction and avoid averaging down on losing positions

6 min▶Read →

Options Trading Risk Management Rules: What to Tattoo on Your Arm

Options trading demands strict risk management: never risk more than 1-2% of capital per trade, use hard stop losses, and diversify your portfolio. Discipline trumps speculation, ensuring long-term survival and profitability.

6 min▶Read →

Options Trading For Beginners: 3 Aggressive Strategies That Pay

Learn three core options trading strategies for beginners: covered calls, cash-secured puts, and credit spreads. These methods focus on generating consistent income and managing risk, demanding disciplined execution over speculative gamblin

6 min▶Read →

Options Trading Risk Management Rules: Tattoo These on Your Arm

Implement rigorous options trading risk management rules to preserve capital and survive market volatility. Focus on strict position sizing (1-2% max risk), non-negotiable stop losses, and understanding Greeks like time decay to avoid catas

6 min▶Read →

Covered Calls For Small Accounts: Realistic Monthly Returns

Covered calls offer a realistic path to consistent monthly income for small accounts by selling call options against owned shares. Focus on stable stocks, manage risk with position sizing, and aim for 1-3% monthly returns by choosing approp

3 min▶Read →

Options Trading For Beginners: Three Strategies That Actually Pay

Options trading for beginners involves cutting hype to focus on strategies that pay: covered calls for income on owned shares, cash-secured puts for discounted stock acquisition or premium, and credit spreads for defined risk. These strateg

7 min▶Read →

Covered Calls For Small Accounts: Realistic Monthly Returns

Covered calls can generate realistic monthly returns on a small account by selling options against stock you already own. It's an income-focused strategy, not for explosive growth, and requires understanding risk-reward for consistent cash

3 min▶Read →

Why Most Options Traders Blow Up Accounts in Their First Year

Most options traders fail within their first year due to a lack of fundamental understanding, unchecked greed, and abysmal risk management. This article breaks down common pitfalls, why education is key, and how disciplined execution could

3 min▶Read →

Complete Options Trading index

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