Strategies for small trading accounts to create income
The two main strategies I generally teach regarding options are to (1) sell naked puts on stock you like anyway at strike prices you wouldn't mind buying the stock at and (2) sell covered calls on stocks you already have.
A third strategy that can give a trader a higher probability of success is to trade credit spreads. A put credit spread is to sell at a strike lower than where the stock is trading while simultaneousluy buying a contract one strike lower. A call credit spread is to sell at a strike higher than where the stock is trading while simultaneousluy buying a contract one strike higher.
A trader can sell both a put credit spread and a call credit spread (also known as an iron condor). The advantage of this is (1) being able to produce premium income on smaller accounts (can start with as little as a couple hundred dollars, (2) being able to produce income with a more defined risk, and (3) be able to produce income on a more consistent basis in up, down, and sideways markets.