My Option Trading Journey: From Curiosity to a Meaningful Stream of Income

If you had asked me back in 2016 what I thought about option trading, I probably would have shrugged and changed the subject. That was the first time I ever heard about options, but at the time, I didn’t think much of it. I was already comfortable with my investing strategy, which focused heavily on monthly dividend stocks. I liked the predictability, the steady income, and the simplicity. I wasn’t looking for anything complicated, and option trading sounded exactly like that—complicated.

So, like many things we don’t fully understand, I ignored it.

For years, option trading stayed somewhere in the back of my mind. I knew it existed, I knew people were making money from it, but it didn’t feel necessary for me to explore further. I was investing, my portfolio was growing, and dividends were doing their job. There was no real urgency to add something new.

That all changed in the second half of 2022.

Rediscovering Options in 2022

By 2022, the investing landscape felt very different. Markets were volatile, interest rates were rising, and social media was flooded with financial content. YouTube, in particular, was filled with videos about option trading—people talking about covered calls, cash-secured puts, premium collection, and “passive income” strategies. At first, I watched out of curiosity. Then curiosity turned into genuine interest.

I started wondering if I had dismissed option trading too quickly back in 2016.

The idea of generating income without selling my long-term investments was appealing. Even more appealing was the thought of getting paid to wait—either to sell shares at a price I was already comfortable with or to buy shares at a discount. That concept alone made me want to dig deeper.

So I did.

Learning, Confusion, and Information Overload

Once I decided to take option trading seriously, I dove in headfirst. I watched videos daily. I read articles, forum posts, and comments. Every free moment seemed to be filled with terms like “in the money,” “out of the money,” “at the money,” “buy to open,” “sell to close,” and “assignment risk.”

And honestly? None of it made sense at first.

No matter how many times someone explained it, the terminology felt overwhelming. I understood the idea behind options, but the execution felt intimidating. I remember thinking, “How do people do this without messing it up?” It seemed like one wrong click could cost thousands of dollars.

For a while, I questioned whether this was worth the effort. Dividend investing felt so much simpler in comparison. But something kept pulling me back. I think it was the realization that once you truly understand options, the mechanics don’t change. The learning curve is steep, but the rules are consistent.

The Breakthrough Moment

Eventually, I came across a video that changed everything.

It wasn’t flashy. There were no luxury cars, no screenshots of massive gains, and no promises of getting rich overnight. Instead, the creator broke down option trading in the simplest way possible, using real examples and plain language. For the first time, the concepts clicked.

I finally understood the difference between buying and selling options. I understood how premiums worked, how expiration dates mattered, and why people emphasized trading stocks you actually wanted to own. Most importantly, I felt confident enough to try it myself.

That confidence was a game changer.

My First Trades and the End of 2022

I started small. Very small.

My goal wasn’t to make a lot of money—it was to learn without blowing up my account. I focused on selling options, not buying them, and I stuck to well-known stocks that I was already comfortable holding long-term. If something went wrong, I wanted to be okay with the outcome.

By the end of 2022, I had made about $500 in premium collected.

To some people, $500 might not sound impressive. But to me, it was huge. That $500 represented understanding, discipline, and proof that this strategy could actually work. It wasn’t luck or a one-time trade—it was the result of a repeatable process.

That was when things started to look up.

Building Momentum in 2023

In 2023, I continued doing what worked. I didn’t chase risky trades or experiment with strategies I didn’t fully understand. I focused on consistency, position sizing, and risk management. Every trade had a purpose, and every stock I traded was one I was willing to own.

By the end of 2023, I had made over $4,000 in option premium.

This was a big psychological milestone for me. It showed that 2022 wasn’t a fluke. The income scaled as my confidence and experience grew. I also noticed that I was becoming more patient. I wasn’t forcing trades—I waited for good setups and acceptable risk.

Option trading was no longer something I was “trying.” It had become part of my investing routine.

Significant Growth in 2024

In 2024, everything accelerated.

I had a full year of experience under my belt, and I trusted my process. I understood assignment risk better, I knew when to roll positions, and I was much more comfortable managing trades as expiration approached.

That year, I made over $12,000, which was roughly three times what I earned in 2023.

This was the point where option trading stopped feeling like a side experiment and started feeling like a legitimate income stream. It wasn’t replacing my job, but it was meaningful. It could cover major expenses, increase savings, and provide flexibility that traditional investing alone couldn’t.

A Breakout Year in 2025

Then came 2025.

With even more experience, better discipline, and a refined strategy, I had my best year yet. I stayed consistent, avoided emotional decisions, and respected risk above all else.

By the end of 2025, I had made over $30,000 in option premium—about 2.5 times more than the year before.

What made this even more significant was the context: option trading accounted for roughly 20% of my total income in 2025. That’s not something that comes easily, especially from a strategy many people dismiss as too risky or too complicated.

The Most Important Lesson I Learned

Over the years, I’ve learned a lot about option trading, but one lesson stands above all others:

Only trade stocks that you want to own.

This rule has saved me countless times. When you trade options purely for premium on stocks you don’t believe in, you’re setting yourself up for stress and potential losses. If a trade goes against you and you’re assigned shares you don’t want, the premium you collected can quickly be overshadowed by losses.

Option trading is not just about making money—it’s about managing outcomes. When you trade stocks you genuinely want to own, assignment isn’t a disaster. It’s simply part of the process.

Is Option Trading Passive Income?

I do believe option trading can be a form of passive income, but with an important caveat: it’s semi-passive. You still need to monitor positions, manage risk, and stay disciplined. It’s not something you can completely ignore.

That said, compared to many other income streams, the effort-to-reward ratio can be very attractive once you know what you’re doing.

Looking Ahead to 2026 and Beyond

I don’t know what will happen in 2026. Markets change, volatility shifts, and nothing is guaranteed. But I do know this: I plan to continue option trading long-term.

It has proven itself as a reliable, scalable, and meaningful part of my financial life. When something contributes 20% of your income, it’s hard to ignore its value.

For anyone considering option trading, my advice is simple: take your time, start small, and invest responsibly. Learn the fundamentals, respect the risks, and never trade what you don’t understand.

Option trading isn’t a shortcut to wealth—but when done correctly, it can be a powerful tool in a long-term financial strategy.