📬 In This Issue of The Option Premium: Debt, Downgrades, and Defined-Risk Trades

First of all, thank you. Your continued encouragement and kind words mean the world to me. I’m deeply grateful that so many of you are finding value in The Option Premium and using it to sharpen your options trading skills.

Over the next few weeks, I’ll be rolling out a brand-new series of YouTube videos covering strategies, setups, and walk-throughs — plus a few live webinars exclusively for paid subscribers. So stay tuned… there’s a lot of value coming your way.

As always, the best way to support what I’m building here is to share the website (pass the link along) with fellow traders. If each one of you who find value in my The Option Premium could send to one, two or three of your friends or just post in social media channels I would greatly appreciate it. Word of mouth is how I grow, how I keep the insights coming, and how I continue to deliver value.

Here’s what we’re unpacking this week inside The Option Premium:

📉 Market Snapshot & Commentary
A fiscal storm is brewing. We break down how tax bills, debt downgrades, and tariff threats pressured markets — and why volatility is making a comeback. We also lay out sector-specific opportunities for premium sellers as directional confidence fades.

📰 Weekly In-Depth Articles
Two power-packed reads: Learn how to ladder income using PMCCs and how to time your entries using breadth, RSI, and volatility. Both articles give real-world tactics to refine your edge and increase your consistency.

🎓 Options 101: The First Steps to Trading
Strike prices demystified. This week’s lesson explains what they are, why they matter, and how to choose the right one. Real setups using SPY, QQQ, and IWM bring it to life for newer traders building their foundation.

🧠 Mental Capital
Van Tharp’s most overlooked lesson is front and center: why position sizing is the strategy. We explore how risk per trade shapes performance, mindset, and longevity — and how to size smart across PMCCs, spreads, and CSPs.

📊 The Implied Truth
A data-driven guide to this week’s premium-selling setups. We highlight contrarian opportunities using RSI, IV Rank, and sentiment extremes — plus the one golden setup to watch when fear spikes and volatility pays.

📚 Educational Corner: Options Deep Dive
The Lazy Way Portfolio: A hands-off strategy using PMCCs and The Wheel across a diversified ETF model. Built for accounts from $25K to $250K, this approach balances structure and efficiency with realistic monthly income potential.

📉 Market Snapshot & Commentary

New Bill, Old Burden: Why Markets Pulled Back and What Traders Should Watch Now

Markets took a breather last week after a strong two-month rally. The S&P 500 fell 2.6%, the NASDAQ dropped 2.5%, and the Dow retreated 2.5%, driven by renewed concerns over U.S. fiscal policy and a resurgence of trade tensions. A trifecta of events—the House passing a major tax bill, Moody’s downgrading U.S. government debt, and fresh tariff threats—reignited investor focus on the national debt and long-term deficits. The result? Bond yields spiked, volatility crept higher, and directional confidence waned across key sectors.

The House-approved “One Big Beautiful Bill” extends many of the 2017 tax cuts and adds several new breaks aimed at boosting short-term growth—everything from tax relief on overtime and tips to a higher cap on SALT deductions. But the Congressional Budget Office estimates this bill could add nearly $3 trillion to the deficit over the next decade. Simultaneously, Moody’s downgraded U.S. debt, aligning with prior downgrades from S&P and Fitch, sparking a wave of headlines but minimal market impact—at least for now. While this doesn’t alter the U.S. Treasury’s role as the world’s safest collateral, it has pushed long-term yields higher, with the 30-year Treasury briefly topping 5% last week.

Meanwhile, the trade narrative is once again front and center. Late-week tariff threats—specifically 50% tariffs on EU goods and a 25% levy on Apple—reminded investors that the July and August tariff deadlines are fast approaching. These potential cliff events will coincide with ongoing debt-ceiling negotiations, creating a high-volatility setup that premium sellers should be watching closely.

💡 What This Means for Options Traders

• Volatility Is Returning: Rising rates, trade uncertainty, and deficit headlines are pressurizing equities. This elevates implied volatility, particularly in tech, industrials, and international ETFs. That’s premium-selling territory—if sized and structured correctly.

• Consider Risk-Defined Trades: With directional conviction softening, stick to iron condors, credit spreads, and diagonals in sectors showing volatility divergence (e.g., SMH, XBI, EFA). Use defined-risk structures to hedge against sharp two-way moves.

• Bond Proxy Trades: The bond market is talking. Use TLT or IEF for directional plays or calendar spreads if you expect yields to peak and reverse. Consider bull put spreads in high-quality bond proxies if you believe Fed easing remains on the horizon.

• Watch the Calendar: Tariff deadlines in July and August may serve as volatility catalysts. Build trades with expiration dates that anticipate—not trail—those events.

• Fiscal Fears = Sector Repricing: Defensive sectors like healthcare and financials may outperform. Look to bullish diagonals or conservative put spreads in these groups as a hedge against broad market weakness.

📊 Weekly Market Stats

🔹 Market Meter

🚨 Ready to Trade Smarter — with Real-Time Alerts and Real Results?

If you’re done second-guessing every trade and ready to follow a structured, proven approach, now’s the time to step inside.
Our premium services aren’t theory — they’re built around real portfolios I manage, complete with:

• 📈 Clear trade alerts (before the move, not after)

• 🧠 Weekly commentary with education you can actually use

• 💡 Strategies built for consistency, not prediction

• 🔁 Easy-to-follow systems for every level of trader

No fluff. No chasing. Just real-world trades designed to compound your edge, week after week.

💼 The Income Foundation – Just $9/month

Perfect for: Newer traders or anyone wanting consistent, low-stress income.
Built around The Wheel Strategy using cash-secured puts and covered calls, this service delivers hands-on trade alerts, a structured model portfolio, and step-by-step guidance — all for less than two cups of coffee a month.
✅ Simple to follow
✅ Great for accounts starting at $5K–$25K
✅ Weekly updates and real trades you can learn from

🔧 Wealth Without Shares – $49/month

Perfect for: Traders who want to unlock more with less capital.
We use capital-efficient strategies like Poor Man’s Covered Calls across five diversified portfolios. It’s ideal for traders looking to scale responsibly while keeping risk defined.
✅ Smart leverage through LEAPS and diagonals
✅ Real-time alerts and full trade breakdowns
✅ Perfect blend of passive setups and active tuning
💥 Three of our six positions are already up double digits — and we’re just getting started.

📊 The Implied Perspective – $129/month

Perfect for: Advanced traders who thrive on volatility — and want the data to back it up.
This is where strategy meets science. We sell premium using IV Rank, IV Percentile, RSI, and Expected Move — the same core indicators powering our Implied Truth research.
You’ll get access to:
✅ Premium-selling setups across 100+ hand-picked equities and 50 ETFs
✅ Iron condors, jade lizards, earnings plays, and more
✅ A research engine that finds edge where others guess

If you love our volatility dashboard, you’ll get the full expanded dataset — with real trades tied directly to what the numbers are telling us.

Whatever stage you're at, there's a portfolio and strategy here that fits.
Start with one, or bundle them all. You’ll get structure, education, and real-time execution — so you can stop guessing and start trading like you mean it.

— Andy

📰 Weekly In-Depth Articles 

🗓️ Tuesday, May 20th: How to Ladder Income Using Poor Man’s Covered Calls

🗓️ Thursday, May 22nd: Using Breadth, Volatility, and RSI to Time Premium Selling

🎓 Options 101: The First Steps to Trading

📚 New to Options? Learn How Strike Prices Work (And Why They Matter)

If you’ve ever been confused by the term strike price, you’re not alone. But understanding it is key to becoming a confident options trader.

In this week’s Options 101: The First Steps to Trading, we explain strike prices in plain English — what they are, how they affect your profits, and how to choose the right one for your trades.

✅ Easy-to-follow examples for calls and puts
✅ Tips on how to pick smart strike prices
✅ Real trade setups using SPY, QQQ, and IWM
✅ Common beginner mistakes to avoid

If you want to build a strong foundation in options trading, this guide is a must-read.

👉 Options Trading 101: Understanding Strike Prices 

💬 Got questions after reading? Leave a comment on the article page! That way, others can learn from the discussion, join in, and we can build a stronger community together.

We’ll be adding more articles to this series over the next few weeks — covering topics like how to choose your first strategy, how the Greeks work, and more — all in the same clear, plain-English style you expect from The Option Premium.

🧠 Mental Capital

Train not just your trading system, but your trading self.

🧠 Mental Capital: Why How Much You Risk Matters More Than What You Trade

New traders often ask: “What’s the best strategy?” But legendary trading coach Van Tharp had a different answer: 👉 It’s not about the system. It’s about your position size.

In this week’s Mental Capital, we break down why position sizing is the real key to success in options trading — especially for those just starting out.

✅ Learn what “position sizing” means (in plain English)
✅ Understand why trading the same size every time can backfire
✅ Discover how smart traders adjust risk based on the setup, not just the strategy
✅ See simple examples for selling puts, spreads, PMCCs, and more
✅ Protect your mental capital — so you don’t burn out after a few bad trades

If you’ve ever doubled down on a “sure thing”… or frozen after a losing streak… this article is for you.

🧠 Van Tharp’s Most Overlooked Lesson - Why Position Sizing Is the Strategy

📊 The Implied Truth: Weekly Table Overview

Welcome to the most anticipated section of The Option Premium — your weekly guide to navigating volatility and transforming uncertainty into opportunity. Here, we break down the data, spotlight the most actionable setups, and lay out a clear, structured framework for premium-selling strategies. If anything catches your eye — or if you want to workshop a trade idea — I'm always just a message away.

Each week, we scan the most liquid ETFs for the best setups based on implied volatility (IV), IV Rank, RSI extremes, and price action trends. The goal? Help premium sellers and options strategists position around probability, not prediction.

This Week's Premium Landscape – IV, RSI, and Real Opportunities

Welcome to this week’s data-driven breakdown for options traders. Every ETF below has been filtered through the most reliable combination of signals used by pro-level traders: RSI levels, IV Rank, IV Percentile, and Put/Call Ratios.

These indicators help us determine:

• Is price overextended or oversold?

• Are we being paid enough to sell options here?

• What’s the sentiment beneath the surface?

📚 Your Edge, Explained Simply

🔍 This Week's Top Trade Ideas

Built for high-probability setups using real data from the most liquid ETFs.

🟢 1. Overbought + High IV = Ideal for Call Credit Spreads or Covered Calls

These setups occur when an ETF is rallying too hard, and option premiums are inflated — time to lean contrarian.

✅ GLD – Gold ETF

• RSI(2): 84

• IV Rank: 58.1

• IVP: 87.9

• Why it matters: High momentum + expensive options = great candidate to fade strength.

• Trade Idea: Sell an OTM call credit spread (e.g. $315/$320, 30–45 DTE), or roll/hedge PMCCs if already long.

✅ URA – Uranium ETF

• RSI(14): 85.5

• IV Rank: 53.2

• IVP: 50.7

• Why it matters: Uranium just printed extreme RSI. Options pricing justifies selling premium.

• Trade Idea: Bear call spread 15–25 delta wide. Or consider short-term PMCC hedge.

✅ GDX – Gold Miners ETF

• RSI(2): 92

• IV Rank: 44.2

• IVP: 34.7

• Why it matters: One of the highest short-term RSIs on the board. While IV isn’t massive, it’s adequate.

• Trade Idea: Small-sized call vertical above recent highs. Add theta, reduce exposure.

🔴 2. Oversold + High IV = Put Spreads, PMCC Entries, Cash-Secured Puts

Here, fear is dominant, and we’re being paid a premium to step into weakness.

✅ SMH – Semiconductors

• RSI(2): 1.66

• IV Rank: 26.1

• IVP: 36.1

• Why it matters: Panic-level RSI. IV is borderline high — we’re almost there.

• Trade Idea: Bull put spread ($230/$220). If RSI bounces, theta will work fast.

✅ KRE – Regional Banks

• RSI(2): 0.94

• IV Rank: 27.5

• IVP: 14.4

• Why it matters: Extreme short-term selling, but IV is too low for naked puts.

• Trade Idea: Conservative play is a micro-bull put spread. More aggressive? Start a deep ITM PMCC.

✅ XLK – Tech Sector

• RSI(2): 2.62

• IV Rank: 26.3

• IVP: 40.3

• Why it matters: This is the dip. Volatility is decent. Great for income layering.

• Trade Idea: Short puts or put spread on weakness. Start new PMCC base if long-term bullish.

🟡 3. Neutral RSI + Elevated IV = Iron Condors and Income Layers

When price is stable but options are still expensive, this is prime real estate for non-directional premium selling.

✅ SPY – S&P 500 ETF

• RSI(14): 56

• IV Rank: 27.7

• IVP: 39.9

• Why it matters: Neutral chart. Premium just high enough for iron condors.

• Trade Idea: $560/$580 call and $540/$520 put iron condor. Manage at 50% profit or 21 DTE.

✅ QQQ – Nasdaq 100

• RSI(14): 60

• IV Rank: 27.7

• IVP: 39.0

• Why it matters: No clear directional edge. Let time do the work.

• Trade Idea: Iron condor or neutral PMCC structure. Don’t chase deltas.

✅ XLF – Financials

• RSI(14): 52.6

• IV Rank: 27.8

• IVP: 33.8

• Why it matters: Perfectly neutral setup. IV is acceptable. A textbook income week.

• Trade Idea: Iron condor with narrower wings (10-point width). Or straddle with stop loss.

🧭 Bonus Watchlist: Sentiment Surprises

🗺️ Final Market Outlook

• Implied volatility remains moderate — strong enough to sell, not enough to panic.

• Momentum is mixed across sectors. Some strength (GLD, URA), some weakness (SMH, KRE), and a lot of neutral setups.

• The best traders this week? They’ll focus on defined-risk, time-based strategies, and price extremes.

📌 Key Tip: When RSI(2) is below 5 and IV Rank is above 30, you’re being paid to bet against fear. That’s the golden setup. You don’t need 10 trades. You need 2–3 good ones.

🧩 Wrap-Up

This is a “set-up week,” not a “swing-for-the-fences week.” Use the data. Trust your framework. Trade small. Trade smart. Let edge compound.

👉 If you enjoy this weekly breakdown, consider forwarding it to a fellow trader. It’s one of the best ways to grow The Option Premium community.

📩 If you found this helpful, forward it to another trader.
Your support helps grow this community — and the quality of insights we can provide every week.

📊 Quick Reference: The Implied Truth Table

Use this to spot volatility trends, premium opportunities, and momentum shifts at a glance. 🚀

📚 Educational Corner: Options Deep Dive

🎓 Topic of the Week: 💤 Build a Lazy Income Portfolio With Options (No Day Trading Required)

Want to grow your account without watching the market all day? This week’s Option Premium guide shows you exactly how to build a “Lazy Way” portfolio using two simple, proven strategies: Poor Man’s Covered Calls (PMCC) and The Wheel Strategy.

✅ Easy-to-follow breakdowns of each strategy
✅ Pros and cons explained clearly
✅ A ready-to-use ETF portfolio (great for $25K–$250K accounts)
✅ Estimated monthly income + capital allocation example
✅ Built-in structure for low-stress, consistent trading

If you're tired of chasing trades and want to trade smarter, not harder, this article is your blueprint.

👉 Building a Lazy Way Portfolio With Options

🔗 Let’s Stay Connected

Have questions, feedback, or just want to say hello? I’d love to hear from you.
📩 Email me anytime at [email protected]

📘 Join the conversation on Facebook.
📺 Subscribe to the YouTube channel.

Thanks again for reading. I hope you found today’s insights valuable and worth your time.

Trade Smart. Trade Thoughtfully.
Andy Crowder
Founder | Editor-in-Chief | Chief Options Strategist
The Option Premium