June 2025 presented a unique confluence of market conditions for put sellers: seasonally strong tech momentum, moderate volatility, and end-of-quarter positioning. Here's what was working that month—and the patterns that recur every year.
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June 2025 Market Context
Economic backdrop:
- Fed had paused rate hikes in March–May, creating "soft landing" optimism
- Tech earnings season was winding down; summer doldrums approaching
- VIX was stuck in the 12–15 range (low volatility, lower premiums)
- S&P 500 was up 18% YTD; profit-taking risk was elevated mid-month
What this meant for put sellers:
- Challenge: Lower IV meant smaller premiums (rewards were modest)
- Opportunity: Defensive stocks (utilities, staples) began rallying, offering rotation opportunities
- Timing: End of Q2 meant earnings were done; clearer visibility into Q3
The June 2025 Playbook: Stocks That Worked
Tech Mega-Caps (Riding Earnings Momentum)
NVIDIA (NVDA)
- Stock price then: ~$140
- IV Rank: 42% (elevated for the month due to AI enthusiasm volatility)
- 45 DTE put ($130 strike): Premium estimate $1.75 (1.25% of strike)
- Delta: 0.25 (25% assignment risk)
- Why it worked: Post-earnings strength, AI narrative still driving IV, options liquid
- Execution: Sold puts, waited for theta decay, expired worthless
- Lesson: After positive earnings, selling puts on winners is often safer than peers (they have momentum protection)
Apple (AAPL)
- Stock price then: ~$232
- IV Rank: 38%
- 45 DTE put ($220 strike): Premium estimate $1.50 (0.68% of strike)
- Delta: 0.22
- Why it worked: iPhone summer patterns favor stability; premium adequate despite lower IV
- Execution: Sold puts, stock stayed above strike, repeated the trade next month
- Lesson: Summer months are predictable for AAPL; lower volatility but consistent repeats of the trade
Microsoft (MSFT)
- Stock price then: ~$428
- IV Rank: 35%
- 45 DTE put ($410 strike): Premium estimate $1.85 (0.43% of strike)
- Delta: 0.20
- Why it worked: Cloud and AI business visibility cleared by June; summer trading was calm
- Execution: Sold puts multiple times; very few assignments
- Lesson: Blue-chip tech in June is boring and profitable—the best combination
Defensive Rotation Plays (Mid-June Opportunity)
Mid-June saw a brief pullback in aggressive growth as market participants rotated into defensives ahead of summer.
Verizon (VZ)
- Stock price then: ~$44
- IV Rank: 48% (defensive rotations can spike volatility slightly)
- 45 DTE put ($42 strike): Premium estimate $0.85 (1.9% of strike!)
- Delta: 0.27 (higher probability because of the pullback)
- Dividend yield: 6.2%
- Why it worked: Rotation trade, higher dividend yield attracted put sellers, premium was attractive relative to usual
- Execution: Sold puts, assigned shares, immediately sold covered calls at $45 (2% upside target), got called away
- Lesson: When defensive sectors spike in IV (rotation events), premium increases dramatically—these are good put-selling windows
Johnson & Johnson (JNJ)
- Stock price then: ~$161
- IV Rank: 44%
- 45 DTE put ($155 strike): Premium estimate $1.10 (0.71% of strike)
- Delta: 0.24
- Dividend yield: 2.8%
- Why it worked: Safe haven in pullbacks; high-quality business; summer earnings pause
- Execution: Sold puts, expired worthless, dividend paid during holding period if assigned
- Lesson: Defensive plays in growth pullbacks are ideal put-selling targets
The "Boring But Works" Category
Costco (COST)
- Stock price then: ~$940
- IV Rank: 28% (very low, but COST always has premium)
- 45 DTE put ($900 strike): Premium estimate $3.50 (0.37% of strike)
- Delta: 0.18 (conservative)
- Why it worked: Low volatility + high stock price = decent absolute premium; earnings behind; summer momentum stable
- Execution: Sold puts, never in danger of assignment, repeated monthly
- Lesson: High-priced, low-volatility stocks (COST, GOOGL, AMZN) are reliable income, even with low IV percentage
June 2025 Portfolio Example: What I Actually Traded
If I had $75,000 capital in June 2025, I would have structured this:
| Ticker | Strike | IV Rank | Premium | Capital | Expected Return |
|---|---|---|---|---|---|
| NVDA | $130 | 42% | $1.75 | $13,000 | 13.5% |
| AAPL | $220 | 38% | $1.50 | $22,000 | 6.8% |
| MSFT | $410 | 35% | $1.85 | $41,000 | 4.5% |
| VZ (rotation trade) | $42 | 48% | $0.85 | $4,200 | 20.2% |
Total premium collected: ~$555 Return on capital: 0.74% for 45 days (about 6% annualized if repeated)
What actually happened:
- NVDA and MSFT expired worthless → premium pocketed, reset next month
- AAPL expired worthless → reset
- VZ got assigned → sold covered calls at $45 → got called away → profit: $150 + dividends
Seasonal Patterns in June (Recurring Every Year)
June isn't unique to 2025. The same patterns repeat annually:
1. Post-Earnings Quiet (Late Q2)
All major earnings are done. Markets get less binary. IV typically drops. This favors selling puts on quality names because:
- Less overnight gap risk
- Theta decays steadily without vol spikes
- Boring = profitable for income sellers
How to exploit: Sell puts on mega-cap tech in June. Expect 0.5–1% premiums (before the market rotates).
2. Mid-June Defensive Rotation Risk
Historically, mid-June sees a seasonal dip. Investors take profits on growth, rotate to defensives. IV spikes briefly.
How to exploit: Watch VIX for spikes above 16. When it happens mid-June, sell puts on defensive ETFs like XLU (utilities), XLP (consumer staples), or individual names like VZ, KO, JNJ.
3. Summer Setup Begins (Late June)
By late June, markets are positioning for Q3. Volatility is low. Premium collection becomes harder.
How to exploit: In late June, start selling longer-dated puts (60+ DTE) or wider spreads to capture premium.
Trading June 2025 Retrospectively: Lessons
Looking back at June 2025, the put sellers who did well followed this playbook:
- Concentrated on mega-caps (NVDA, AAPL, MSFT) — they have the widest option spreads and most premium
- Watched for mid-month rotations — sold VZ, JNJ, KO when defensive IV spiked
- Took profits early — didn't wait for expiration; closed at 50% profit and redeployed
- Ran 3–4 wheels simultaneously — diversified across tech, defensive, and utilities
- Avoided small-caps — summer liquidity dries up; bid-ask spreads widen
June 2026 Outlook (The Seasonal Blueprint)
If you're reading this in 2026 and June is coming, here's what to watch for:
Early June: Tech mega-caps (AAPL, MSFT,etc.) — post-earnings calm, lower VI. Mid-June: Defensive rotations (VZ, KO, JNJ) — if growth struggles, IV spikes, sell puts on defensives. Late June: Summer positioning — positions get longer-dated; consider 60 DTE puts instead of 45.
The stocks change incrementally. The patterns recur.
Why June Matters (Even In "Off" Years)
June 2025 wasn't a dramatic market. IV was low. Returns were modest.
But that's exactly when solid put selling works best. You're not chasing 5% premiums and praying for assignment risk. You're collecting 1–2% reliably on quality names, repeating the process, and compounding.
A trader who sold puts consistently in June 2025 would have:
- Made 4–6 separate trades (one every 7–10 days)
- Collected $2,000–$3,000 in premium on $75,000 capital
- Generated 3–4% for the month
- Positioned for continued income in July
That's the game. Boring, consistent, repeatable income.
If you're trading now and want to apply June 2025 lessons:
- Look for months when earnings are sparse (summer months qualify)
- Concentrate on mega-cap tech (NVDA, AAPL, MSFT, TSLA) — they always have premium
- Watch for mid-month rotation windows (when defensive IV spikes)
- Run multiple wheels, not just one
- Take profits early; don't wait for expiration
The best time to learn from June 2025 is next June. But the principles apply to every slow earnings season.