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Strategies Guide

Here’s a short guide and checklist for the 6 strategies, designed with real-life retirement goals in mind—income generation, capital preservation, and low stress.

1. Covered Calls

When to Use:

  • You own 100+ shares of a stock you’re willing to hold
  • You want monthly income without selling the stock
  • You think the stock will stay flat or rise slightly

Why it works for Retirees:

  • Generates steady income
  • Adds a “paycheck” to long-term holdings
  • Low risk if you’re holding quality stocks

Quick Tip: Use on dividend-paying stocks for double income potential.

2. Cash-Secured Puts

When to Use:

  • You want to buy a stock at a lower price
  • You’re okay owning the stock if assigned
  • You want income while waiting for the stock to dip

Why it works for Retirees:

  • Provides income while staying conservative
  • Allows you to “name your price” for stocks
  • Completely backed by cash = lower stress

Quick Tip: Choose strike prices below the current market for extra safety.

3. Diagonal Call Spreads

When to Use:

  • You want a mix of income and upside potential
  • You’re okay managing a position monthly
  • You want to lower capital requirements

Why it works for Retirees:

  • Less money at risk than owning stock
  • Generates income while holding a long-term bullish outlook
  • Flexible and customizable

Quick Tip: Think of it as a “rent-and-hold” strategy.

4. Credit Spreads (Vertical Spreads)

When to Use:

  • You have a directional view (bullish or bearish)
  • You want limited risk and a fixed income target
  • You want defined outcomes

Why it works for Retirees:

  • Built-in risk management
  • Easy to understand income potential and max loss
  • Can be used in IRAs

Quick Tip: Use far out-of-the-money strikes for higher probability.

5. Iron Condors

When to Use:

  • You expect a stock or index to stay in a range
  • You want to generate income from low-volatility markets
  • You prefer small, steady profits

Why it works for Retirees:

  • Doesn’t require picking direction
  • Defined risk, defined reward
  • Can be adjusted or closed early

Quick Tip: Ideal for ETFs like SPY or QQQ in sideways markets.

6. Protective Puts (or Collars)

When to Use:

  • You want to protect a stock position from downside
  • You’re nervous about market volatility
  • You want to sleep better

Why it works for Retirees:

  • Acts like insurance on your investments
  • You stay invested without fear of a big drop
  • Collars add income too (by selling a call)

Quick Tip: Use after large gains or during earnings season for added safety.

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