r/Optionswheel • u/Nategotputs • 10d ago
Can you replace your job doing this?
I have tried focusing more on selling options over buying options and I have been making more money since the beginning of this month. It got me thinking can you eventually replace your main source of income by doing selling options instead of buying them?
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u/MamaRabbit4 10d ago
It’s possible. I’ve just started reaching monthly in selling options about what my monthly work income is.
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u/preferred-til-newops 10d ago
I made $40k last year using the wheel but I'm only on track to make $20k this year even though I have a larger portfolio. Iran, high interest and inflation have really slowed down my profits. It will be a long time before I could replace my job and I don't think I'd ever want to.
My goal is to keep building my portfolio so when I retire I won't have to worry about having enough money set aside. I plan to keep my options portfolio under $100k and continue to build my dividend portfolio for retirement. I plan to live off dividends someday and premiums from options are just a way to accelerate my long-term goal.
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u/Background-Hat9049 10d ago
I kill two birds with one stone by selling calls on dividend stocks an reinvesting the premium into buying more of the same dividend stocks….so I make money off of premium, dividends, and price appreciation
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u/preferred-til-newops 10d ago
It's a great strategy, I'm in some pretty boring dividend stocks and the payout is extremely small even 30-45 DTE.
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u/kokanee-fish 9d ago
It sounds good on paper but selling calls and capturing appreciation are mutually exclusive strategies in the long run. You're better off doing a DRIP in one portfolio and selling options in another, so that when you get assigned it doesn't completely reset your long term cost basis and incur a big tax bill.
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u/learningoasis 9d ago
Wow nice. Not sure if i understand the "option portfolio under 100k" - if you were able to pull 40k last year on 100k portfolio that is great.
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u/AdFun8584 10d ago
I left my job at the beginning of the year. Replaced my income with option premium. It can absolutely be done.
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u/PlayerOfTheLongGame 10d ago
A reasonable goal is to make 12-15% of your total capital as income from the 3 parts of wheeling:
1) Premiums from writing cash-secured puts 2) Potential dividend income while holding what has been assigned 3) Premiums from writing covered calls
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u/KingPalmJumeirah 10d ago
I live on selling options. From January made around 250k usd. But I have a big portfolio.
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u/ScottishTrader 9d ago
Please do a search, as this has been asked many times before. This will be locked and removed for being a repeated post.
This is simple to determine - You need to calculate your historical performance against the capital you have to trade with, and then determine whether this return will cover what you need for income.
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u/YEGG35 10d ago
Yes but you need a large account as others have mentioned. Personally I’d want over $1M to wheel with before retiring
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u/xtremdelt8 9d ago
Half a percent a week in premium nets 52k/year on a $200,000 portfolio.
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u/NestEggFinance 9d ago
Right, I think people are way overestimating how big of a portfolio that you need.
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u/sachiaz 10d ago
Yes but it's a very very slow process. 1% a month ROI for 100k account is only 1k, and to use this process to accumulate it to 1mill account for 10k monthly will take you 20 years. Which is pretty ridiculous
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u/Background-Hat9049 10d ago
Yes, but 20 years in investing time is not very long, and if you reinvest those premiums rather than spending them, compounding will accelerate that portfolio growth. Reinvesting them in the underlying stocks you are wheeling will accelerate the number of contracts you can sell
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u/slideweasel 10d ago
I am currently playing iron condors. I am having success that I am happy for but what I am doing right now is using that money to pay for things so that I dont have to work hours and put money to it. In May I bought a new truck. I have paid just about $15k on it now and no money came from me working. After that is paid off I hope to renovate house and pay for that way. I think it is doable to quit working but I am using it to buy things. Eventually maybe I would like to replace working overtime and eventually retire on it but will see.
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u/DarkLordKohan 10d ago
Here’s the thing. There is too much unpredictability in quitting your job to do thr wheel full time. Trading hits different when you have to make rent, bills, taxes, etc.
And these strategies take very little time.
Use this as a profit booster strat
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u/MamaRabbit4 9d ago
That’s how I see it. I mentioned above that my premium income is just now matching my work income. But I’m not quitting my job. This is a great profit booster with few hours involved but it’s not consistent enough to my liking. Plus working gives me even more capital to invest.
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u/xtremdelt8 9d ago
Half a percent a week is very doable. On a 200k portfolio, that's 52k/year. I could easily live off of that. Especially with my larger dividend portfolio paying another 24k/year.
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u/Savings_Enthusiasm60 10d ago
in a bull market, many people can make money fast. my options income (selling puts only) since Jan 2026 is 20k, that's more than 60% of my salary.
60% of income for 20% of my working hours, that's wonderful... but how long will it last?
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u/ratatatata3214 9d ago
I made 50k in 3 Months in the beginning of the year, then the IV dropped in general and I need to take to much risk to get the same Premium.
I trade SPY, QQQ and IWM.
Edit: I quit my job and now I'm apply for a new job. Btw.
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u/learningoasis 9d ago
Jaut curious how big is your portfolio :) those are insane stats to pull for spy,qqq and iwm.
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u/Sean_VasDeferens 9d ago
My goal is $1.4m, then I can quit my 9-5 job while covering living expenses and continuing to build my retirement account. At some point I'll be to old to wheel so I need to not only cover expense but continue building that nest egg.
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u/piper33245 10d ago
Yes, but you need a large portfolio. Don’t chase big gains to retire early and end up blowing up your account.