📩 The Option Premium Weekly Issue - September 28, 2025

📨 Welcome Note

Building The Option Premium, Together

Momentum continues to build at The Option Premium. In just a couple of weeks, the first YouTube videos will go live. By year’s end, I’ll also be releasing courses, hosting live webinars, and adding tools designed to deliver more than quick tips, resources meant to create lasting value. For premium subscribers, the first earnings trades in The Implied Perspective are on deck, alongside new strategies, expanded education, and ongoing updates across all services.

Through it all, the part I value most is the community forming around this project. My goal from the start was to build something useful and sustainable, and it’s your feedback and support that have given it shape. For that, I’m deeply grateful.

📺 Subscribe on YouTube so you’ll be notified when the first videos are released.
👥 Join the private Facebook group or connect with me on X.
💌 Send me your topic requests, whether for the newsletter, YouTube, or webinars.

A Quick Note to All Weekly Subscribers

Since May 1, the S&P 500 has gained about 13%. Our Wealth Without Shares portfolios have done nearly twice that, +31.5% in under 5 months (about 93% annualized).

Put it in trade terms: nine positions, one contract each, cost $21,910 to open. Today, those same trades are worth $28,810, a $6,900 gain. Winners like Apple (+57.4%), Johnson & Johnson (+49.2%), and Chevron (+45.5%) stand out, while steady names like Cisco and Merck quietly keep delivering income.

All of this comes from a simple, repeatable approach: anchor with deep ITM LEAPS, then methodically sell premium through Poor Man’s Covered Calls. It’s a capital-efficient system built to compound through any market environment.

For those who want something even simpler, our sister service The Income Foundation ($9/month) has quietly gone 15-for-15 trades since May, compounding a +22.5% return with the Wheel Strategy.

A Note on Pricing

Starting January 1st, subscription prices will be going up. But for anyone who joins before then, your rate will be locked in for life.

Right now, the two cheaper services include:

• The Income Foundation ($9/month or $79/year)

• Wealth Without Shares ($49/month or $495/year, a service that often costs over $1,500 elsewhere)

As I state often, we’re building something meaningful here, brick by brick. I’m honored to have you alongside me on this journey, and I look forward to what’s ahead.

Andy

📊 Market Commentary & Snapshot

Economic Momentum, Market Stretch, and the Options Angle

The latest round of economic data shows the U.S. is running hotter than most expected. Growth in the second quarter was revised up to 3.8%, well above the long-term 1.5%, 2% trend. Consumer spending, the lifeblood of the economy, also beat forecasts at 2.5%. August’s personal income and spending reports extended the theme, households are still opening their wallets, suggesting third-quarter growth could hold above 3%.

For traders, the numbers paint a picture of resilience. But that strength has already fueled an exceptional equity rally, over 30% off April’s lows without even a routine 2% dip. Add in the possibility of an October 1 government shutdown and the seasonally volatile stretch we’re entering, and the near-term risk/reward skews toward more turbulence.

Why This Matters for Options Traders

• Selling Premium in Stretched Markets: After such a run, defined-risk credit spreads (bear call spreads, iron condors) on the major indices become attractive. If we finally see the kind of 5% to 10% pullback that usually occurs a couple of times a year, premium will expand quickly.

• Layering in Hedges: A shutdown headline, even if short-lived, could jolt volatility. Cheap insurance through VIX call spreads or out-of-the-money puts on SPY or QQQ can help cushion portfolios.

• Long-Delta Income Plays Still Work: Strong consumer data keeps the bull case alive. Cash-secured puts and Poor Man’s Covered Calls remain productive strategies on quality names, especially if we get a dip that allows for better entry prices.

• Data That Drives Volatility: Keep an eye on weekly jobless claims and PCE inflation. These are the two data points the Fed is watching most closely into its October 30 decision, and they’ll directly influence implied volatility and market tone.

Bottom Line

The economy looks solid, but markets have sprinted far ahead. That combination creates one of the better backdrops for options traders, long-term income strategies supported by growth, hedges to protect against political noise, and short-term premium-selling setups into any October chop.

📊 Weekly Market Stats

📰 Weekly In-Depth Articles 

🗓️ New Report - Poor Man’s Covered Calls: The Definitive Guide to Smarter Options Income

🗓️ Thursday, September 25th - Euphoria Is Loud. Bottoms Are Silent: Why Bragging Traders Often Mark the Top

 ⁉️ Did You Know?

Historical Data on Pullbacks (S&P 500)

Looking at studies from JPMorgan, Schwab, and CFRA using post-WWII data:

• 5%+ pullbacks → On average about 3 to 4 times per year.

• 10%+ corrections → Roughly once every 12 to 18 months.

• 20%+ bear markets → Historically every 5 to 6 years, though clustered around recessions.

For example, in the past 30 years (1995–2024):

• Only 5 calendar years had no 5% pullback (1995, 2017, 2021, and a couple of rare others).

• In most years, there were multiple 5% declines, often tied to Fed cycles, geopolitical shocks, or earnings season volatility.

For Options Traders

That means a 5% decline is “normal noise” for the market, something you should expect a few times each year, not an outlier event. For options traders, this is when volatility expands and premiums become more favorable, so planning strategy shifts around these pullbacks is essential.

🎓 Options 101: The First Steps to Trading

What Is a Protective Put?

This week’s Options 101 article explains one of the most straightforward ways traders protect themselves when markets turn: the protective put. Think of it as portfolio insurance, you keep your upside potential while capping your downside risk.

We cover how protective puts work, when they make sense, how they differ from stop losses, and why professionals use them selectively to protect capital and preserve mental discipline. From earnings announcements to macro uncertainty, this strategy gives you flexibility, defined risk, and peace of mind.

A protective put won’t make you rich, it keeps you in the game. Survival, not prediction, is what separates professionals from amateurs.

👉 Read this week’s Options 101 article to learn how protective puts work and why they’re one of the simplest, most effective hedges in options trading.

🧠 Mental Capital

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

How the Greatest Traders Overcome Losses

Losses are inevitable. Survival is optional.

The best traders in history, Jones, Soros, Druckenmiller, Livermore, weren’t spared from mistakes. What set them apart was how they responded: with respect for risk, speed of recovery, emotional detachment, and relentless focus on capital preservation.

For options traders, the lesson is clear:

• Keep positions sized small enough to survive variance.

• Use defined-risk structures so the downside is known.

• Treat losses as tuition, not identity.

• Protect your mental capital, because clarity and discipline disappear faster than cash when losses pile up.

Losses don’t define great traders. Their resilience does.

👉 Read the full article in the Mental Capital series and learn how to build the psychology that keeps you in the game long after others fade.

📊 The Implied Truth: Weekly Table Overview

Unlock the Full Picture – Upgrade to access the complete table, including all 100 equities (AAPL, META, AMZN, NVDA and more)

Every number tells a story. Each week, we decode the landscape across the most liquid ETFs, because this is where retail traders get the cleanest signals and the least slippage.

But the power isn’t in the data, it’s in how you interpret it.

Below is your edge: a strategic overview that reveals where the premium is overpriced, where price action is exhausted, and where the highest-probability setups exist for the coming week.

This section is here to help you choose what works for your strategy. The numbers are facts, not opinions. Whether you sell premium, buy directional spreads, or trade reversals, the edge begins with understanding volatility and momentum. Let’s dig in.

What This Table Tells Us

• Use this weekly to guide your trade ideas, not predict outcomes.

• The data is factual. There’s no opinion in this grid, only opportunity.

• Choose what aligns with your timeframe, risk appetite, and edge.

Quick Reference

🌐 ETF Snapshot - Most Liquid Signals (This Week)

🔑 Legend

🟢 Oversold → Oversold bounce or cheap vol setups
🟠 Caution → Moderately stretched, worth monitoring
🔴 Extreme → Overbought/oversold extremes or crowded vol setups

📊 Indices

• SPY 661.8 🟠 → steady but stretched

• QQQ 596.0 🔴 → overheated tech leadership

• IWM 241.4 🟠 → small caps lagging, moderate vol

⚡ Volatility Signals

• VIX 15.3 🟠 → calm headline, but hedging still active under the surface

• URA 48.4 🔴 → uranium vol elevated, extended momentum

• GDX 74.7 🔴 → metals stretched + vol rich

• XLP 78.0 🟠 → defensive staple unusually bid

🥇 Overbought / Oversold Extremes

Overbought - RSI(2) > 90
SLV 96.7 🔴 | XOP 96.2 🔴 | XLE 94.8 🔴 | USO 94.4 🔴 | SMH 82.6 🟠 | GDX 81.5 🟠 | GLD 79.4 🟠

Stretched - RSI(7) > 70
SMH 80.6 🔴 | SLV 85.7 🔴 | GLD 74.7 🟠 | GDX 74.5 🟠 | USO 68.9 🟠

Sustained Overbought - RSI(14) > 70
SLV 79.7 🔴 | GDX 75.2 🔴 | GLD 74.3 🔴 | SMH 73.5 🔴

Oversold - RSI(2) < 20
EEM 7.4 🟢 | IBIT 15.4 🟢 | IEF 12.6 🟢 | VIX 20.1 🟢

🎯 Key Takeaways This Week

• Metals & Uranium (GDX, SLV, GLD, URA) → extended and crowded, volatility high

• Tech leadership (QQQ, SMH, XLK) → momentum strong but overheated short-term

• Energy (XLE, XOP, USO) → pushing short-term overbought levels

• Emerging markets & bonds (EEM, IEF) → oversold, possible relief ahead

• Breadth slipping → fewer stocks carrying indices = rising fragility

📊 3 Charts That Matter

1. Tech Heat → QQQ & SMH show RSI(2) above 90, confirming short-term blow-off levels in leadership stocks.

2. Volatility Divergence → VIX sits at 15, yet implied vol runs at 93%+, showing demand for hedges despite a calm surface.

3. Metals Overextension → SLV, GDX, and GLD all stretched across multiple RSIs with elevated IVR, fragile and crowded.

📚 Educational Corner: Options Deep Dive

Why You Should Learn to Love Boring Trades

Most new traders chase excitement, lottery-ticket calls, crash bets, headline plays. But the trades that actually build wealth over time are rarely thrilling. This week’s Educational Corner explains why cash-secured puts, covered calls, iron condors, and PMCCs consistently outperform high-risk speculation.

“Boring” trades shine because they’re repeatable, scalable, and survivable. They protect mental capital, generate steady income, and allow compounding to quietly do its work. The truth is simple: excitement fades, but probability and discipline compound.

👉 Read the full article: Why Boring Trades Are the Smartest Trades

⭐ Testimonial of the Week

“Hi Andy!
Your information on LEAPS has been very helpful and encouraging.

On Aug. 5 I bought a GOOGL 180C expiring 6/26 when Google was at $195.65. Now I’m up over $5,000!

This LEAP is in my rollover IRA. I’m debating whether to let it ride or cash it in and roll into a new LEAP. Do you think GOOGL is going to continue going up?

I know you can’t make this decision for me, but any info and thoughts you have would be appreciated. Keep up the good work!”

📝 Andy’s Take

I love seeing this kind of success with LEAPS. The key with long-dated options is having a framework for when to harvest gains and reset risk. Personally, I think about three main factors:

1. Delta & Time Decay - As LEAPS move deeper in the money, their delta approaches 1. That means they start acting like stock, but with time value still slipping away. At that point, rolling into a fresh contract often makes sense.

2. Profit Targets - Having predefined levels (say 50–100% on the LEAP itself) can help you take emotion out of the decision.

3. Portfolio Role - Ask: is this position meant to capture long-term upside, or is it part of a PMCC income engine? The answer guides whether I let it run or reset.

With a gain this size, there’s no “wrong” answer. You either bank profits and reload with more time, or let the winner run knowing you’ve already locked in a margin of safety. The discipline is in sticking to your framework, not chasing the next tick.

🔗 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]

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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