One worked example for the stock, distance and expiry you picked: the order, the cash, the odds and the worst case.
Earnings dates aren’t in the beta data yet. The models still allow for them: companies report about every 3 months, so each simulation includes an earnings-sized jump (based on this stock’s own biggest moves this year) as often as a report would fall before your expiry. Always check the actual report date in your broker before you trade.
Where the price could finish by expiry, and how often this setup made money in the model.
The curve shows how likely each price is at expiry: the higher the curve, the more likely. Red is where your trade would lose money.
The forecast blends three independent models, like an ensemble weather or solar forecast. Market: what option prices imply. Volatility: how much the stock has actually been moving lately. History: its real last 50 days, replayed in random order 12,000 times.
P10 / P50 / P90: 10%, 50% and 90% chance the price ends below that level. Results assume you hold to expiry; the 500-run simulator below applies the coach's take-profit and stop rules. "Touch" is roughly twice the chance of finishing past the strike.
Play the trade forward on past prices or a simulated path, day by day, and see what to do at each point.
Each run is a random market path with realistic jumps, moving at the stock's actual recent volatility. The coach's rules are applied every day: take profit at 50%, stop at 3× the credit, close the day before expiry.
Exactly what to select and click in a typical brokerage platform to open and later close this trade.
When you sell a call, you promise to sell your shares at the strike if the buyer asks. You get paid now. Use it on shares you own and would be happy to sell higher.
When you sell a put, you promise to buy shares at the strike if the buyer asks. You get paid now. Use it on stocks you'd be happy to own at a lower price.
This is how the option chain typically looks in brokerage platforms (for example NBDB, Questrade, Wealthsimple or Schwab; not affiliated). Prices here are model estimates for learning; your platform shows the live ones. You receive the bid when you sell and pay the ask when you buy; a limit at the mid usually fills.
How the example plan is managed, the words you'll see, and the important information about this tool.
Options in 60 seconds
The right to buy 100 shares at the strike. If you sell a call, you may have to sell your shares at the strike.
The right to sell 100 shares at the strike. If you sell a put, you may have to buy shares at the strike.
Income strategies are on the seller side: you are paid up front for taking on an obligation that only matters if the price crosses your strike before expiry.
Same $50 stock, 30 days to expiry, so you can compare them. Pick a trade:
Trade 1 of 4 · illustrative example
Earn premium on shares you already own, in exchange for agreeing to sell them at a set price.
01 / Build the position
Your holding
100 shares
Share price today: $50
Position value: $5,000
Sell to open
1 × $55 call
30 days · $1.25 premium per share
1 contract = 100 shares
Premium credit
$125
$1.25 × 100 shares
Before fees and taxes
The cash flow
02 / What can happen?
If the stock is at or below $55 at expiry
Call expires unexercised
You keep your shares and the $125.
The premium cushions only the first $1.25 per share of a dropIf the stock is above $55 and you're assigned
Shares are sold at $55
You receive $5,500 for the shares and keep the $125.
Effective sale price $56.25 · gains above $55 go to the buyerThe stock can still fall. If it drops from $50 to $40, your shares lose $1,000 and the $125 premium covers only part of that. Assignment can also happen before expiry.
Trade 2 of 4 · illustrative example
Get paid while you wait to buy a stock at a lower price than today.
01 / Build the position
Cash set aside
$4,500
Strike $45 × 100 shares
Stock price today: $50
Sell to open
1 × $45 put
30 days · $1.00 premium per share
1 contract = 100 shares
Premium credit
$100
$1.00 × 100 shares
Before fees and taxes
The cash flow
02 / What can happen?
If the stock is at or above $45 at expiry
Put expires unexercised
You keep the $100 and your $4,500 is released.
$100 earned on $4,500 held for 30 daysIf the stock is below $45 and you're assigned
You buy 100 shares at $45
Your $4,500 pays for the shares, and you keep the $100.
Effective cost $44 per share · you now own the stockThe stock can fall a long way. If it drops to $35 you still pay $45 a share: $4,500 for shares worth $3,500. After the $100 premium, that is a $900 loss on paper.
Trade 3 of 4 · illustrative example
Collect premium on a stock you expect to stay above a level, with a fixed worst case.
01 / Build the position
Sell to open
1 × $45 put
Collect $1.00 per share ($100)
The income leg
Buy to open
1 × $40 put
Pay $0.35 per share ($35)
Your protection leg
Net premium
$65
$100 in, $35 out
Before fees and taxes
The cash flow
02 / What can happen?
If the stock is at or above $45 at expiry
Both puts expire
You keep the $65 and the $435 is released.
Break-even at expiry: $44.35If the stock is at or below $40 at expiry
Maximum loss: $435
You lose the $500 width less the $65 collected. Your $40 put stops anything worse.
Between $40 and $45 the result is partialYou risk $435 to make $65. The chance of keeping the premium is usually high, but one full loss can wipe out several wins.
Trade 4 of 4 · illustrative example
Collect premium from two spreads at once, for a stock you expect to stay in a range.
01 / Build the position
Put side
$45 / $40 put spread
Net $0.65 per share
Collect $65
Call side
$55 / $60 call spread
Net $0.55 per share
Collect $55
Net premium
$120
$65 + $55
Before fees and taxes
The cash flow
02 / What can happen?
If the stock stays between $45 and $55
All four options expire
You keep the $120 and the $380 is released.
Break-evens at expiry: $43.80 and $56.20If the stock ends below $40 or above $60
Maximum loss: $380
One spread loses its full $500 width, less the $120 collected.
Only one side can lose at expiryA surprise can break the range. An earnings gap can push the stock through one side overnight. You risk $380 to make $120.
Hypothetical prices for education only. Standard 100-share contracts assumed. Fees, taxes, dividends and early assignment are not modelled.
Then, by expiry, one of three things happens:
The price never crosses your strike. You keep the whole premium, and the collateral is released.
The price crosses the strike. Through the clearing house, shares and cash change hands at the strike. You still keep the premium.
You “buy to close” the same option. You pay its current price; your result is the premium in minus the cost out.
Reads the range traders are pricing in from today's option prices.
Uses how much the stock has really moved lately, with room for rare big days.
Replays this stock's own daily moves from the past year, thousands of times.
Combines all three into the odds, the worst 1-in-20 case and the replay you see.
Earnings reports are built in. When a report could fall before expiry, the models add an overnight jump sized from that stock's biggest moves this year, as often as a report is likely. Big tech names can gap 5% to 10% or more after earnings.
Educational illustration, not investment advice. Options involve risk and are not suitable for every investor.
Broker names are mentioned only to describe common platform screens; Option Coach is not affiliated with any broker. Beta version, Oct 2026.
Free covers a set of tickers each week. Pro unlocks every stock and ETF.
Prices in US dollars. Sales tax, where it applies, is calculated at checkout.
Limited to the first 100 people
Pro unlocks all 500+ stocks and ETFs. Founding members pay $9 a month for their first year instead of $19, and can cancel any time.
Pre-orders open soon. Join the waitlist below to be first in line.
Two minutes of feedback shapes what we build next.
Pro preview
Enter your email and we'll send you a sign-in link. No password needed.