Core Insights - The article discusses the challenges faced by traders with smaller accounts when using popular options strategies like covered calls and naked puts, primarily due to the risk of assignment and capital requirements [1][4]. Group 1: Challenges for Small Accounts - Smaller accounts may struggle with the capital-intensive nature of strategies like covered calls and naked puts, which require the obligation to buy or secure 100 shares of stock [4]. - The automatic nature of assignment when selling puts poses a significant risk for traders without sufficient capital [3]. Group 2: Alternative Strategies - Risk-defined credit spreads are recommended as a solution for small accounts to tap into income-generating strategies without massive capital requirements [2][5]. - Credit spreads allow traders to benefit from high implied volatility environments while defining their risk upfront and dramatically lowering capital requirements [5]. Group 3: Recommended Spreads - The article highlights two core credit spreads suitable for beginners: the Bear Call Spread, which is used when expecting the stock to stay below a certain level [6]. - This strategy involves selling a call option at a strike price aligned with expected price resistance and buying another call at a higher strike with the same expiration [6].