How To LITERALLY Sell Options on ROBINHOOD for Weekly Income

Summary

In this video, Zeke explains how to generate passive income by selling put options on Robinhood. He shares his personal experience, outlining the steps of his strategy using technical analysis, specifically Bollinger Bands, to predict stock movements. Zeke emphasizes the safety of selling options, particularly cash-secured puts, as a way to earn consistent returns. He also introduces the concept of the wheel strategy, which involves selling covered calls and managing risk. Zeke offers guidance on the process, tools, and resources for those looking to learn how to sell options effectively, including access to his Patreon community.

Takeaways

• 😀 Start selling put options on Robinhood to generate passive income by using the safer side of options trading (selling, not buying).
• 😀 In 2025, the speaker started taking options trading seriously, focusing on creating passive income through strategies like selling covered calls and cash-secured puts.
• 😀 The speaker has earned $11,567 in the first two and a half months of 2025, showcasing the profitability of this strategy.
• 😀 The Wheel Strategy is introduced, which involves selling cash-secured puts, then selling covered calls, followed by poor man covered calls.
• 😀 Technical analysis is crucial for determining the right time to sell options, with Bollinger Bands being one of the key indicators used to predict price movement.
• 😀 When selling cash-secured puts, the best time is when the stock is near the bottom of the Bollinger Band, as it tends to revert back to the middle or top.
• 😀 To sell put options on Robinhood, choose a strike price below the current stock price, ensuring the collateral is covered.
• 😀 Selling a put option involves committing to buy 100 shares of stock at a predetermined price if the option is exercised, but earning a premium upfront.
• 😀 The delta of an option is important; a delta around 0.3 or under is ideal for a high win rate, which is approximately 70-75%.
• 😀 Consistent selling of options with high implied volatility can lead to significant gains. Monthly returns can range from 5.7% to 8.86%, depending on the chosen strike prices and delta.
• 😀 Over time, compounding these returns can lead to exponential growth, with the speaker projecting monthly earnings of over $7,000 within three years with consistent reinvestment.

Q & A

What is the primary focus of the video?

The video focuses on teaching viewers how to sell put options on Robinhood as a way to generate passive income, explaining the process, strategies, and tools involved.

Why did the creator start taking options trading seriously in 2025?

The creator decided to take options trading seriously in 2025 because they gained the necessary skills and knowledge, and saw options as a safer way to generate passive income, particularly through selling put options.

What is the 'Wheel Strategy' mentioned in the video?

The 'Wheel Strategy' is an options trading method where the investor sells cash-secured puts, buys the underlying stock if assigned, and then sells covered calls on those stocks to generate income.

What is a cash-secured put, and how does it work?

A cash-secured put is a strategy where an investor sells a put option, agreeing to buy 100 shares of a stock at a specific price if the option is exercised. In return, the seller receives a premium. The cash used to buy the shares is set aside as collateral.

What indicators are used for technical analysis in Robinhood according to the video?

The video recommends using Bollinger Bands for technical analysis. The creator adjusts the settings to use a 30-period simple moving average (SMA) with a standard deviation of 2.

Why does the creator prefer selling puts when Robinhood is near the bottom of the Bollinger Bands?

The creator prefers selling puts when Robinhood is near the bottom of the Bollinger Bands because the price tends to revert back towards the middle or top of the bands, increasing the likelihood of the put being profitable.

How does the creator calculate potential profits from selling put options?

The creator calculates potential profits by looking at the premium received from selling a put option. For example, if the premium is 92 cents for a $41.50 strike price, the profit is $92, assuming the stock does not fall below the strike price.

What is the significance of the 'delta' in options trading?

The delta measures the sensitivity of an option’s price to changes in the price of the underlying asset. A lower delta, such as 0.3 or lower, indicates a safer trade with a higher probability of success, while a higher delta increases the risk.

What monthly return can someone expect by selling cash-secured puts with a delta of 0.3?

By selling cash-secured puts with a delta of 0.3, the creator estimates an average monthly return of 8.86%, which would result in around $1,000 in passive income after one year from a $4,200 investment.

What are the potential long-term benefits of selling put options according to the creator's calculations?

According to the creator's calculations, selling put options can lead to significant portfolio growth over time, with the potential to generate over $7,000 in monthly income after three years from an initial $4,200 investment, assuming the strategy is consistently applied and reinvested.