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3 Options Trades for $1,000 in Monthly Income

Selling naked puts for a standard monthly return

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A few years back, I decided to aim for a goal of generating about $1,000 per month in options income.

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Sure, that particular number was selected because it’s a nice, round number — but it’s one that I considered achievable based on the amount of risk I was willing to tolerate, and the capital available to execute trades should they occur.

Originally, my strategy centered around selling covered calls against a part of a few core positions. Then I realized a more efficient play was to sell naked puts against stocks I either held and felt were undervalued, stocks I was considering purchasing, or stocks that were good trading vehicles. That way, if the stock price was below the strike, the stock would be put to me, and I’d be happy to have it.

So here are three such stocks that I’ve used options on to help generate my monthly goal:

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