Google is a nice stock he does not want to sell, so he would roll the in-the-money 310 call up rather than lose the shares; he does not think Google will be at $360 by the November 20 expiration, so the out-of-the-money 360 call should keep eroding and that premium becomes his profit.

two major positions I hold are Amazon, Google, and Walmart. This is something, specifically Walmart, that isn't sexy.

And then I have a Google covered call, with which I'm up $11,800 .

And a large portion of that comes from my larger, safer positions, such as Google, Amazon, and Walmart. Of course, these stocks still carry some risk and they still fluctuate.

Amazon, Google, amazing, right?

Right, I want to look at my Google position to show you a current covered call I have open on Google. Google is currently trading at $340 per share. My average purchase price is $316.

When I sold a put option on Google, my average purchase price went up, okay? Not down, because I sold a put option that much lay higher. So my average costs for Google were, you know, around 240.

Now it's over 300 because I had sold a lot of put options, I was allocated, and so now I'm selling covered calls. You can see that I'm selling two different covered calls. One is a 360 call option and the other is currently in-the-money. It's pretty deep in-the-money at 310.

First of all, Google was below 310. Now, this option is in-the-money. As I approach the expiration date of November 20, I will probably roll this option up to a higher strike price.

I am going to roll this option up because I do n't want to lose my Google shares. I am $101,000 in the plus with Google.

So I don't want to sell Google. The 360 covered call here is out-of-the-money. To be honest, I'm not too worried about that. I think Google is a nice stock, but I don't think we will be at 360 on November 20.

So this option will probably continue to decline and erode in value, and you know, all that lost money is my profit.

And you can see here that I have a value of $51,000. Let's be clear, part of this $51,000 value is a LEAPS option that I bought on Google and I am slightly in the red on this option so far, but to be transparent, $5,300 of the $51,000 is determined by this LEAPS option.

To start with my largest current position in my portfolio: Google stock. I currently have 3,000 shares. I am up $118,000. And I have been applying the 'wheel strategy' to Google for quite some time.

I have a lot of call options here, because I have already been allocated a significant number of Google shares . I have already made a huge amount of money from, you know, the Google allocations.

I have been writing puts for months. Now I have a million dollars worth of Google stock.

And the only thing I really do is write covered calls. I have the 360 covered call, which is an out-of-the-money covered call. I have a 310, which is in-the-money. So part of my ' wheel strategy' is in-the-money.

You can see here that 10 contracts are in-the-money for 20 November. And then there are another 20 contracts that are out-of-the-money for November 20th.

When I execute the wheel strategy, I sometimes do it on a single block of stocks, and then I have, you know, a different price for those stocks, right? So, for example, I roll 10 contracts here .

That part of the wheel strategy is ' in the money'. And then I have some newer stocks that I was recently assigned, and those are still 'out-of-the-money'. So, that is my Google position.

We will talk a bit more about 'rolling' later in this course and how we can help that position. Or honestly, I can cover it now so that I don't hold anything back and give you this information as soon as possible.

So, take a look at this . You see that Google at 310 now ? Let me go to this option. Google is currently trading at $345 per share, right?

This is simply the wheel strategy because I sold puts to enter. Now I am selling covered calls to exit. go. But, one of the secrets is that you don't always have to get out, right?

Because if I get out , I have a taxable event, and I try, you know, ideally to optimize my tax situation, right ? I'm not a tax advisor or financial advisor; I always seek advice from professionals, right?

But, look, Google 310 covered call, Google 345, I am $35 'in the money', and this position, interestingly enough, because I have used my roll strategy a lot, I am actually in the plus with this position.

So, interestingly, I am in the plus on the position despite being 'in the money'. Again, being 'in the money ' doesn't necessarily mean you are losing money, because if your position hits 'in the money' but you have received a significant amount of premium , then you can still have an overall profit on your position, even if it is 'in the money', right?

But here's the thing, I don't want to sell Google at 310, right? And besides, rolling can earn me even more money than I already have today.

So, let's I go to trade, and I go to 'roll position'. Okay, let me show you this . I can roll this position, I can close the Google 310 call option, and then I can open a totally different position .

So, let me go to 'select new position', okay? And then I'm going to change the expiration date, because the most important factor when rolling is adding more time. So, I'm going from November 20th to January 15th.

And this is part of what I call the ' dog strategy', a strategy I came up with myself in my Discord community, because many people asked me similar questions, such as: how do I roll?

How do I adjust? ... The dog strategy involves rolls between 30 and 90 days. So this is literally a 60-day roll, I think. We’ll see exactly what it is, but let’s start with 310 and I’ll show you the simplest roll ever .

Let’s take 320, for example, okay ? So here, okay, this isn’t ideal. I’ll show you what’s more ideal. So 56 days, right? But there is a debit here. A debit of 700. Let me go back to edit selection.

So yeah, 320 is n’t going to work for me, but let me see what happens if I do 315. So 315, okay, yeah, that’s better. Okay, so at 315 you see that my old position is 310, my new position is 315 , and I have a total credit of $ 2,980.

So I have a net credit here , which is fantastic. When I roll over, I want Ideally, a net credit, because a net credit is money coming in, while a debit is money going out. So I get $ 2,980 in total credit.

The time I add is only 56 days. Honestly, that is n't even that much time. And the current position goes from 310 to 315. Let me explain. When you go from 310 to 315, you think: "Well, Henry, this is still an ' in-the-money' option."

Correct. That is still the case. So we aren't entirely out of the woods yet. But look what is happening here. I receive total credit and raise my cost from 310 to 315. There is a huge benefit to this.

There is a huge benefit here, okay? So that is how I view rolling over, but sometimes I also roll for a debit. There are different situations. I wo n't go too deep into the details in this video for beginners , but let's move on to my other 'wheel' positions.