📩 The Option Premium Weekly Issue - September 7, 2025

Big updates are coming for The Option Premium. I’m close to launching my YouTube channel now that I’ve found the right editing platform, and I’ll also be rolling out courses over the next few months, including live webinars. It takes time to build this right, but things are really starting to come together.

The testimonials lately have been incredible, and I want to thank those of you who’ve been with me from the start. Your pricing will stay the same for life, I promised early supporters an incredible value, and I intend to honor that.

This is a grassroots effort, and your support makes all the difference. If you haven’t already:

• 📺 Subscribe to my YouTube channel so you’ll get notified when the first videos go live.

• 👥 Join my private Facebook group or connect with me on X.

• 💌 If there are topics you’d like me to cover, whether in the newsletter, YouTube, or webinars, always feel free to email me directly.

Thanks again for being part of this journey. The foundation we’re building now is going to shape everything that comes next. I truly appreciate your ongoing support.

Andy

✉️ A Note to Subscribers

Since May 1st, the S&P 500 has gained about 12.1%. Not bad for four months. But our Wealth Without Shares portfolios have done nearly double that, compounding a +23.4% return in the same period.

If you had placed one contract in each of our nine Wealth Without Shares positions, it would have cost $21,910 to open. Today, those same trades are worth $27,030, a profit of $5,120 in just four months, or an annualized pace of nearly 70%.

The secret isn’t picking the next hot stock. It’s structure. By anchoring our trades in deep-in-the-money LEAPS and methodically selling premium through Poor Man’s Covered Calls, we’ve created a capital-efficient system that compounds regardless of headlines. Winners like Apple (+41.9%), Johnson & Johnson (+46.9%), and Chevron (+31.4%) stand out, but even slower names like Verizon and Coca-Cola quietly generate steady income.

That’s the power of Wealth Without Shares: stock-like returns, often more, at a fraction of the capital outlay. By replacing 100 shares of stock with a deep-in-the-money LEAPS contract, you cut the required capital by 65 to 85%. That efficiency means you can run multiple positions at once, diversify across sectors, and still free up cash for new opportunities, something traditional covered calls can’t match.

For traders who want a proven way to do more with less, Wealth Without Shares is built for you.

And if you’re newer to options, or want a simpler path to premium income, our sister service, The Income Foundation ($9/month), has gone 14-for-14 on closed trades since May, producing a 21.2% cumulative return, or $997 per contract, using the classic Wheel Strategy.

Testimonials this week: 

👉 Both services prove the same point: you don’t need to guess where the market is going. You just need the right structure.

📉 Market Snapshot and Commentary

It’s been a long time since the job market looked vulnerable. But this past week, we saw the first real cracks in what had been a sturdy labor backdrop. Job growth slowed to a crawl. The unemployment rate ticked up. And suddenly, the odds of the Federal Reserve cutting interest rates, not months from now, but in the very next meeting, surged to near certainty.

That shift in expectations brought Treasury yields lower, pushed rate-sensitive stocks higher, and gave options traders plenty to think about as we head into the seasonally tricky months of September and October.

Three Things That Matter for Options Traders This Week

1. Labor Market Loses Steam

The economy added just 22,000 jobs in August, far below the 75,000 expected, while the unemployment rate rose to 4.3%, its highest level this year. Job openings also fell below the number of unemployed for the first time since 2021.

➡️ Options angle: Softening labor data increases the odds of Fed action. Lower rates can inflate equity valuations, but also compress implied volatility. In premium-selling terms: good for directional strategies like PMCCs, trickier for short strangles or iron condors unless IV picks up.

2. The Fed’s Pivot Looks More Likely

Markets now assign a 100% probability that the Fed will cut rates at its September 17th meeting. There’s even a 12% chance they opt for a 0.50% cut instead of 0.25%. The 2-year Treasury yield, often the best proxy for Fed expectations, dropped to its lowest level of the year.

➡️ Options angle: Falling yields can boost stocks like homebuilders, banks, and small caps. But don’t chase. Let volatility return, look for overbought conditions, and scale into higher-probability trades with a margin of safety.

3. September Volatility is No Myth

Seasonality matters, not as a timing tool, but as context. Since 1950, September is the worst month on average for the S&P 500. With the market up more than 25% from April lows, even a minor labor wobble could spark a repricing.

➡️ Options angle: Time to tighten up. Reduce sizing. Consider rolling out iron condors or initiating PMCCs at conservative strikes. Use RSI and IV Rank to guide trade selection, extremes will emerge more quickly if volatility returns.

Weekly Market Stats

Looking Ahead: Eyes on Inflation

The labor data may be softening, but inflation hasn’t yet rolled over. CPI and PPI are due next week, and any surprises could alter the Fed’s path. Markets expect core CPI to stay sticky at 3.1%, and PPI inflation to remain elevated. But if services inflation begins to ease, especially in rent, that could give the Fed even more cover to cut.

➡️ Options angle: Inflation data = volatility event. Keep expiration dates staggered, focus on setups where the expected move overshoots historical volatility, and keep a list of stocks with both high IV Rank and favorable RSI readings. The edge is in preparation, not prediction.

Final Take

This week wasn’t dramatic, but it was directional. We got confirmation that the labor market is cooling. We saw the bond market react accordingly. And we heard from FedWatch tools that markets now believe the easing cycle is about to begin.

For investors, that’s a mixed bag. For options traders? It’s an opportunity.

If you're long delta through PMCCs or cash-secured puts, you’re likely in the sweet spot, just be mindful of overbought RSI signals and consider trimming or rolling as you go. If you're selling premium, don't force it, IV remains compressed, and you’ll want to see higher levels or directional catalysts before scaling up.

The next few weeks could be a grind. But grind periods are where consistent traders make their money, not by guessing, but by positioning.

And that's exactly what we’re doing across The Option Premium portfolios.

📰 Weekly In-Depth Articles 

🗓️ Tuesday, September 2nd - The Hidden Correlations: Why Your Options Portfolio Isn’t as Diversified as You Think

🗓️ Thursday, September 4th - Eight Practical Ways to Hedge Your Poor Man’s Covered Calls

🎓 Options 101: The First Steps to Trading

The Basics of Vertical Spreads (Bull Put and Bear Call Spreads)

This week’s Options 101 article introduces one of the most practical tools in a professional trader’s playbook: the vertical spread. By pairing two options of the same type and expiration but with different strikes, traders can cap risk while still stacking probabilities in their favor.

We break down the two core versions:

• Bull Put Spread – a bullish-to-neutral trade that collects income if the stock stays above the short strike.

• Bear Call Spread – a bearish-to-neutral trade that profits if the stock stays below the short strike.

Both strategies define maximum profit and maximum loss upfront, making them safer and more repeatable than selling naked options. They also serve as the foundation for advanced income trades like iron condors and credit spreads.

Takeaway: Vertical spreads let you trade like a professional insurer, collecting premium, controlling risk, and focusing on steady, repeatable returns.

👉 Read this week’s Options 101 article to learn how vertical spreads can strengthen your options toolkit.

🧠 Mental Capital

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

The Cost of Certainty

Some of the most damaging losses in trading never show up on your P&L. They come from the hidden tax of chasing certainty, burning energy, patience, and focus in an endless effort to explain the market before acting.

Markets don’t reward explanations. They reward probability, structure, and discipline. Over-explaining a trade drains mental capital in three ways: decision fatigue, missed timing, and emotional fragility. The harder you try to be certain, the less capable you become of executing when the odds are finally in your favor.

The truth? Clarity usually comes after risk is taken. The process, not the narrative, is what matters: use IV as your compass, position sizing as your shock absorber, and the law of large numbers as your lifeline.

If you can’t explain a trade in one sentence, if you need five signals instead of three, or if you’ve been analyzing for more than 20 minutes, you’re probably not protecting capital, you’re draining it.

👉 Read the full article at The Option Premium

📊 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

🌐 Macro Snapshot

Markets are finally showing signs of two-sided action after a long one-way rally. Breadth remains mixed with large caps holding up, but stress is visible under the surface. High put-call ratios in sectors like semis (SMH 581%) and retail (XRT 214%) suggest hedging activity is picking up. Meanwhile, defensive assets (IEF, TLT, GLD) are extended on RSI, hinting at near-term rebalancing pressures.

📊 Indices & Breadth

• SPY 647.21 - IV Rank 11.6, RSI(14) 58.9 → Neutral, steady grind higher.

• QQQ 576.06 - IV Rank 14.1, RSI(14) 57.2 → Tech extended but not extreme.

• IWM 237.77 - IV Rank 11.9, RSI(14) 66.6 → Small caps stretched, potential for mean reversion.

⚡ Volatility Signals

• VIX 15.22 - Impl Vol 92.5%, IV Rank 39.0, RSI(14) 47.2 → Low spot level but IV structure remains firm.

• HYG 80.87 - P/C 422%, Impl Vol 6.15%, RSI(14) 57.6 → Credit hedges flashing.

• IBIT 63.42 - Impl Vol 42.3%, IV Rank 21.2, RSI(14) 47.0 → Crypto volatility remains bid.

🥇 Metals & Commodities

• GLD 331.05 - Impl Vol 18.3%, IV Rank 31.4, RSI(14) 75.9 → Gold extremely overbought.

• SLV 37.21 - Impl Vol 27.2%, IV Rank 17.3, RSI(14) 68.9 → Silver also hot, momentum at risk.

• GDX 66.34 - Impl Vol 35.8%, IV Rank 38.1, RSI(14) 78.6 → Miners stretched, volatility supportive.

• USO 72.63 - Impl Vol 33.3%, IV Rank 22.5, RSI(14) 42.8 → Oil cooling after a run.

🌍 International & EM

• EEM 50.45 - Impl Vol 17.8%, IV Rank 10.9, RSI(14) 59.8 → Strong bounce, but IV subdued.

• EFA 91.79 - Impl Vol 17.1%, IV Rank 18.3, RSI(14) 55.8 → Europe steady, modest vol.

• FXI 38.90 - Impl Vol 24.3%, IV Rank 8.4, RSI(14) 54.8 → China still weak, hedges cheap.

🎯 Top 3 Opportunities This Week

1. GLD - Overbought across all RSI measures; IV still supportive of premium selling.

2. SMH - Put-call ratio 581% shows extreme hedging; IV Rank near zero creates a sharp skew.

3. XBI - RSI(14) 72.1 and IV Rank 12.9 → stretched biotech move with volatility pricing misaligned.

🚨 Key Risks Ahead

• Credit stress flashing in HYG with extreme P/C activity.

• Overbought signals in GLD, IWM, and TLT point to fragility in crowded trades.

• Volatility complacency - VIX remains low even as breadth weakens, leaving little margin for shocks.

📚 Educational Corner: Options Deep Dive

Managing a Losing Cash-Secured Put (CSP): A Professional Trader’s Guide

Anyone can enjoy the easy wins of cash-secured puts, but the real test comes when a trade turns against you. This week’s Educational Corner walks through a professional framework for handling losing CSPs, from rolling down and out, to taking assignment and transitioning into the Wheel, to covered strangles, and even knowing when to close and move on.

You’ll learn how to use probability, position sizing, and discipline to manage downside risk without letting one bad trade sink your portfolio. Along the way, we highlight the mental side of trading, why managing losses is as much about preserving mental capital as financial capital.

👉 Read the full article: Managing a Losing CSP Like a Professional Trader

🔗 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