Most investors believe there's only one way to make money in the stock market: buy a stock, wait for it to go up, and sell it for a profit.
Options traders know there's another approach.
Instead of relying entirely on capital appreciation, many focus on generating recurring income by selling options premium.
The goal isn't to predict every market move perfectly. It's to consistently make sure the market probabilities are in your favor, manage risk, and repeat the process month after month.
In his latest video, Barchart options expert Rick Orford walks through a realistic roadmap for traders looking to build toward generating $1,000 per month in options income – even starting with a small account around $10,000.
More importantly, he explains why consistency, discipline, and risk management matter far more than chasing oversized returns.
Start With the Right Strategy
One of the biggest mistakes new options traders make is jumping straight into strategies that generate the largest premiums without understanding the risk behind them.
Rick instead focuses on defined-risk strategies that allow traders to survive long enough for probabilities to work in their favor.
His preferred starting point includes:
Both strategies generate income immediately through option premium while defining maximum risk before the trade is ever placed.
As buying power increases over time, traders can expand into:
Each strategy serves a different purpose, but the common goal remains the same: generate repeatable monthly income while controlling downside risk.
Your First Job Isn't Making Money. It's Staying in the Game.
Many traders obsess over how much premium they’re collecting.
Professional traders obsess over risk exposure.
Rick emphasizes that every position should begin with one simple question:
"What's my maximum possible loss?"
If a spread carries a maximum loss of $500, then that trade should be treated exactly like risking $500 – not the $100 or $150 in premium that you’re collecting up front.
As a general guideline, Rick recommends limiting risk on individual trades to roughly 5% of total account value, occasionally stretching toward 10% only when the position can be actively managed.
The objective isn't maximizing gains on one trade.
It's avoiding the one trade that can wipe out months of progress – or your whole account.
Finding High-Probability Trades With Barchart
A good strategy is only as good as the stocks behind it.
Rick demonstrates how he uses Barchart's Options Screeners to narrow thousands of opportunities into a manageable watchlist.
His workflow includes filtering for:
- 30–45 Days Until Expiration
- Weekly Options
- Large and Mega-Cap Stocks
- IV Rank Above 50
- Minimum Premium Requirements
- Defined Maximum Risk
From there, every trade receives another layer of analysis before any order is placed.
Using Barchart's tools, traders can review:
- Profit & Loss Charts
- Options Greeks
- Expected Move
- Technical Trend Analysis
- Earnings Calendar
- Trade Probability
The result is a process built around probabilities instead of opinions.
Don't Let One Earnings Report Ruin a Good Trade
One of the biggest lessons Rick shares is knowing when to leave money on the table.
Many traders hold positions until expiration in the hopes that they can squeeze out the final few drops of premium.
Instead, he prefers to close trades after capturing roughly 80% of the available premium whenever possible – especially if earnings are approaching.
Why?
Because the final 20% often carries the highest amount of risk.
Locking in profits early frees up capital, reduces overnight risk, and allows traders to move on to the next opportunity instead of gambling on one final expiration day.
Losing Trades Are Part of the Business
No strategy wins forever, and eventually, every options trader will have a position move against them.
The difference is how they respond.
Rather than panicking, Rick explains how traders can evaluate whether rolling the position makes sense.
Rolling isn't designed to help you avoid losses. It's best used to give a trade additional time to play out while improving probability – provided the original thesis still holds.
Sometimes closing the position is the right decision, and sometimes rolling creates a better opportunity.
Knowing the difference comes from following a process rather than reacting emotionally.
Build the Process First. Income Follows.
Generating monthly income with options isn't about finding that one perfect trade. It comes from building a system:
- Choose strategies appropriate for your account size.
- Use high-probability setups.
- Manage risk before thinking about reward.
- Review your performance.
- Repeat.
Whether your goal is generating supplemental income or eventually replacing part of your investment returns, consistency – not excitement – is what separates long-term traders from short-term gamblers.
Watch Rick Orford's full walkthrough to see the complete roadmap, then explore Barchart's Options Screeners and Profit & Loss charts to begin building your own repeatable options income process.
