5 Best Stocks To Generate Options Income

10% Credit Spreads
3 min readFeb 5, 2024

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Curious about boosting your options trading game and uncovering the best stocks for generating consistent options income? Today, I’m excited to share some valuable insights on finding the best stocks to generate consistent options income.

Options trading can be a lucrative venture, but it’s essential to choose the right stocks. In this article, we’ll explore three key factors that can significantly impact your options trading success: volume, open interest, and bid-ask spread. Plus, I’ll unveil my top five stocks that I consistently trade using options.

Understanding the Three Key Factors

Before diving into specific stocks, let’s understand the three crucial factors that can make or break your options trading strategy.

  1. Volume: Volume is the total number of options contracts traded in a single day. Higher volume indicates liquidity, making it easier for traders to enter and exit positions. Look for stocks with consistently high daily options trading volumes, as this ensures a more efficient and timely execution of trades.
  2. Open Interest: Open interest represents the total number of options contracts currently outstanding. It reflects the number of contracts created and sold. A higher open interest suggests a more active market, providing traders with better liquidity and potential counterparties. When choosing stocks for options trading, aim for those with substantial open interest.
  3. Bid-Ask Spread: The bid-ask spread is the difference between the highest price a buyer is willing to pay (bid) and the lowest price a seller is asking for (ask). A narrow bid-ask spread is favorable for traders, as it minimizes transaction costs. Opt for stocks with tight bid-ask spreads, ensuring you don’t incur significant losses when entering or exiting positions.

Top Five Stocks for Options Income

Now, let’s take a closer look at my top five stocks that consistently meet the criteria for generating options income:

  1. SPY (SPDR S&P 500 ETF Trust):
  • Volume: High, ranging in the thousands.
  • Open Interest: Substantial, ensuring market activity.
  • Bid-Ask Spread: Tight, facilitating cost-effective trades.

2. QQQ (Invesco QQQ Trust):

  • Volume: High, providing ample liquidity.
  • Open Interest: Solid, indicating an active options market.
  • Bid-Ask Spread: Low, minimizing transaction costs.

3. DIA (SPDR Dow Jones Industrial Average ETF Trust):

  • Volume: Decent, especially for an ETF.
  • Open Interest: Solid, offering good market depth.
  • Bid-Ask Spread: Reasonable, ensuring cost-efficient trades.

4. AAPL (Apple Inc.):

  • Volume: High, reflecting strong market interest.
  • Open Interest: Substantial, indicating an active options market.
  • Bid-Ask Spread: Tight, making it easy to execute trades.

5. AMZN (Amazon.com Inc.):

  • Volume: High, showcasing robust market activity.
  • Open Interest: Significant, ensuring ample liquidity.
  • Bid-Ask Spread: Manageable, allowing for cost-effective trades.

Mastering Options Income

When it comes to generating consistent options income, choosing the right stocks is paramount. By focusing on volume, open interest, and bid-ask spread, you can enhance your trading experience and increase the likelihood of success. Keep these factors in mind as you explore the world of options trading, and remember to adapt your strategy based on the unique characteristics of each stock.

If you want to trade options profitably with a 86%+ win rate and consistently generate monthly income, then join the 10% Credit Spreads program!

Thanks for reading 🙂
Austin Bouley
CEO & Chief Strategy Officer

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10% Credit Spreads

I help people who work-full time or have a family make 10% a month using credit spreads! If you don't make money with my alerts and strategies, I refund you :)