My 2025 options trading notes reflect a year of refining my strategy to match my temperament. I discovered that I hate losing—it triggers emotions that lead to revenge trading. By adjusting my strategies to avoid “closing at a loss,” I found a much more sustainable rhythm.
| Strategy | No of Trades | Income |
| Credit Spread | 34 | 6,431.45 |
| Sell Cash Secured Put | 33 | 3,617.15 |
| Sell Covered Call | 62 | 13,241.77 |
| Buy Call | 16 | 23,862.21 |
| Sell Poor Man Covered Call | 36 | 3,427.36 |
| Total | 183 | 50,579.94 |
Table of Content
Credit Spreads: Overcoming the Fear of Loss
I started the year following a strict 45-60 DTE strategy, closing at 21 DTE regardless of the outcome. While mathematically sound, I found it emotionally draining to realize losses. This led me to my “Cash-Secured Credit Spread” modification.
The Rule: I only enter spreads on stocks I am willing to own. If the trade goes against me, I don’t close for a loss. I accept assignment. If assigned early, I sell the long leg for a massive profit to offset the cost basis.
TSLA Case Study:
Trade: 50DTE Put Spread ($365/$350)
Short Put Assigned early. Long Put closed for $9,579.85 profit.
Outcome: Owned 100 TSLA shares at $365.
- Trade: 50DTE put credit spread, strikes $365/$350
- Premium collected: $465
- SHORT put assigned 1 week early
- LONG put closed for $9,579.85 profit
- Total premium: $465 + $9,579.85 = $10,044.85
- Outcome: Owned 100 TSLA shares at $365 per share. With TSLA at $440 by year-end, I have an additional $7,500 unrealized profit.
Selling Cash Secured Puts
My strategy for selling puts is to only trade stocks of great companies that I really want to own and that are undervalued. This is important because closing a losing trade is not an exit. I will wait for assignment.
The underlying share price should not be more than $60 because I have limited capital. Any expiration date is possible, but I lean towards 30 to 37 days. Exit is only expiration or assignment. I refuse to close at a loss. If the stock price drops, I take the assignment and put the shares to work in a Covered Call strategy.
- Selection: Great companies, undervalued, price < $60.
- Assignments: 5 total (3x INTC, 2x SOFI).
I did roll some of my put options if I can get a decent credit at a lower price. I typically roll out to the next 30DTE.
Selling Covered Calls (SC)
I usually use covered calls on stocks that I do not intend to keep long term.
I like to sell call options with 30 days to expiration. The strike price must be above my purchase price and above the current trading price. I will exit with 50% profit or hold till expiration especially if the price is a safe distance from the strike price. Again, I will rather a stock be called away. I will not close a losing trade.
I roll covered calls quite frequently. When the price touches the strike price, I like to roll the option further out at the same strike or higher if I can get a good credit.
Buying LEAP Calls (BC)
This was my most profitable segment ($23,862). LEAPs suit my style because they allow time to work in my favor, especially when I’m still refining my technical entry points.
The trick is identifying fundamentally good companies with good growth potential. I used to choose the longest expiry. Now I tend to choose the one before it. It allows me to roll the LEAP out if the price gap up. It is important to roll or close when there are 90 to 180 DTE left.
I have not found a way to eliminate 100% loss for this strategy. The best I could do is to choose a strike price where intrinsic value is higher than extrinsic value. If you want to know the science behind it, watch this video: https://youtu.be/XGXVPId_0vM
Google LEAP Trade:
- Trade: 606DTE LEAP call, strike $130.00
- Underlying price: $164.55
- Premium paid: $5, 190.00
- Intrinsic value: 3,654.00 Extrinsic value: $1,605
- Implied volatility: 34.25%
- Sold for $14,180 after 164 days
- Profit: $14,180-$5,190 = $8,990.00
LEAP calls do require some patience.
Poor Man’s Covered Calls (PMCC)
I use my LEAP positions to generate “rent” while waiting for the underlying stock to grow. By selling shorter-term calls (PMCC) against my LEAPs, I collected over $3,400 in 2025.
If the LEAP is profitable, the strike price can be set above the market price. If the LEAP is not profitable, I will use the option price calculator to find a strike price where the LEAP is breakeven or profitable. It takes a bit of work to calculate the strike price and so I seldom do this when the LEAP calls are not profitable yet. I always try to choose an expiry week with the highest IV. Moomoo displays this data prominently at the Option Expiration Dates.
The last column on the right appears on the list of expiration dates of before the option chains. I use the percentage as a guide to pick dates. The higher the better.
Exits could be:
- Close with 50% profit
- Hold till expiration if the market price is a safe distance below the strike price.
- Roll to a higher strike price for a reasonable profit.
The weakness of this strategy is that the PMCC caps the profitability of the LEAP call. There is room for improvement for this strategy.
Final Thoughts & 2026 Goals
2025 taught me that all tools have strengths and weaknesses. It is up to me to leverage the ones that suit my personality. My goal for 2026 is to double these returns and master bear market strategies. My ultimate target? For my trading income to match my salary.
Disclaimer: This post is a personal journal and not financial advice. Trading options involves significant risk.
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