Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTBarchart InsightsTue, August 4, 2026 at 10:09 PM GMT+2 4 min readPage of newspaper with words options trading by Vitalii Vodolazskyi via ShutterstockMost 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.More News from BarchartHuge, Unusual Trading in Marvell Technology Call Options - Investors Are Bullish on MRVL StockMeta Platforms Stock Could Be Signaling a Quick Pop Above $600Covered Call Screener Results for August 4thStop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now!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 StrategyOne 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.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info