Everyone's utility is different, some people become monks after all and voluntarily live in a cell. It's just that this question presupposes that the person is both young and has made over $800K. I'd maintain that the kind of person who fits that demographic isn't the kind of person happy to hole up in Thunder Bay in a 1 bedroom apartment and remain single with no kids for the rest of their life, although I'm sure there are exceptions. That said, even assuming you can get two or three times the risk free rate without significantly more risk is naive at best.
Ok but the guy, the threadstarter said he has WORKING CAPITAL of $800K, i.e. $800K to INVEST in weekly options, NOT making $800K a year. He's asking if with an investment capital of $800K writing weekly options and possibly holding onto the underlying whether he can make a living out of it. That was the original question. This is an option discussion thread NOT an income discussion one.
And besides, the income figures that I quoted in my previous post is NOT living in Thunder Bay; it's living in Metropolitan cities like Toronto, Montreal, Vancouver and etc., renting or with a mortgage. But since this thread is about options, this is just an FYI.
If you have working capital of $800K you presumably earned it unless you inherited it or won the lottery? Anyway, you're right, my point isn't about what income is or isn't reasonable. My point is that anyone who thinks they can get significantly greater than risk free returns without the accompanying risk is hopelessly naive. Especially when they think they're going to do it with a strategy that assumes the entire option buying industry systematically misprices options and will continue to do so for the foreseeable future.
If you plan on doing this with 800K Cash I would stick to SPY, that is what I do. The way it should be structured a liquid cash account to cover 3-4 years of expenses + an emergency fund contingency, then your cash flow generating portfolio where you put a percentage of the cash generated into your living expense cash account and have your mortgage already paid for. The cash buffer is to provide piece of mind and the equivalent of a shock absorber. It all requires carefully planning but it can be done and you can live a comfortable life "off the grid"