It has been an interesting year for my opitons trading portfolio. If you’ve been following my monthly updates, you’ll notice that my options trading income has stayed relatively flat for most of 2026. That is largely by design—I’ve shifted a significant portion of my focus and capital toward direct shares trading.
However, as my core holdings in certain counters have grown past the 100-share mark (specifically Palantir and Robinhood), a great opportunity has opened up to generate steady sideline income using options without letting go of my core positions.
In my latest setup, I’ve planned a strategy to capture close to USD$2,000 in premium over roughly a month by combining Covered Calls and OTM Puts.
SELL PUT Strategy explained here:
Introducing SOP Options Trading Strategy
Breakdown of the Current Positions
Looking at my trade tracker, here is how the numbers stack up across the three positions (with capital calculated based on the strike prices):
| Stock / Strategy | Action | Strike Price | Current Price | Expiration Date | Time Frame | Premium Collected | Capital Required (Strike-Based) |
| Palantir | SELL CALL | $150.00 | $132.00 | 14-Aug-26 | 39 days | $456 | $15,000 |
| Robinhood | SELL CALL | $135.00 | $100.05 | 14-Aug-26 | 39 days | $455 | $13,500 |
| AMD | SELL PUT | $370.00 | $556.39 | 21-Aug-26 | 36 days | $953 | $37,000 |
| Total | ~37-39 days | $1,864 | $65,500 |
1. Palantir Covered Call ($150 Strike)
- Capital Required (Strike-Based): 100 shares x strike price ($150.00) = $15,000.00.
- Premium Collected: $456.00 over 39 days.
- Return for the period: $456 / $15,000 = approx 3.04% (in ~39 days).
2. Robinhood Covered Call ($135 Strike)
- Capital Required (Strike-Based): 100 shares x strike price ($135.00) = $13,500.00.
- Premium Collected: $455.00 over 39 days.
- Return for the period: $455 / $13,500 = 3.37% (in ~39 days).
3. AMD OTM Put ($370 Strike)
- Cash-Secured Capital Required: Strike price ($370.00) x 100 shares = $37,000.00 cash collateral.
- Premium Collected: $953.00 over 36 days.
- Return for the period: $953 / $37,000 = 2.58% (in ~36 days).
Total Capital, Returns, and Annualized Projections
- Total Strike-Based Capital Deployed: $65,500.00 (combining the strike-based capital values for the covered calls and the cash backing the AMD put).
- Total Premium Collected: $1,864.00
- Average Time Frame: ~37 to 39 days (roughly 1.25 months).
- Cycle Return: Generating $1,864 on a $65,500 base yields an average return of about 2.85% per month.
What if we annualize this?
If market conditions remain stable and this exact strategy can be replicated month after month throughout the year:
- Simple Annualized Return: 2.85% x 12 months = 34.2% annualized.
(Note: Compounded return would look even higher, though consistency depends heavily on market volatility and stock direction).
Low Risk and High Probability of Success
Because I have built up a comfortable sized position in counters like Palantir and Robinhood over time, selling Covered Calls feels like a natural extension of my long-term holding strategy.
- Safety Margin: My strike prices ($150 for Palantir and $135 for Robinhood) are comfortably above my break-even thresholds and well above current market prices. This keeps my assignment risk very low and even if they do get assigned, I have no loss.
- AMD Cash-Secured Put: With AMD trading strongly around $556.39, my OTM put strike at $370 gives me a massive safety cushion of over 33.5% downside protection.
All three positions are currently performing exceptionally well. There is a very high probability that all of them will expire worthless by mid-August. If they do, I keep the full $1,864 premium as pure sideline income while retaining my underlying shares and cash.
If these stock prices stay sideway throughout the year and I can repeat this strategy over and over again, then I will get a pretty decent return for the year. It is another baby step towards recouping the huge losses I have accumulated previously in options trading.
Read more here:
I Was Margin Called, IBKR Liquidated ALL My Positions & Realised S$540k (USD400k) Worth Of Losses
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