HOOD is a stock the speaker really likes and holds while running a covered-call wheel strategy; he is modestly in the red on the shares with a 114 average cost but profiting on covered calls struck at 105 that are deep in the money, thanks to rolling over a longer period and collecting premium.

Let's look at Robinhood, for example. Okay, Robinhood is a stock I really like and that I've discussed a lot on this channel . I'm currently even slightly in the red on Robinhood.

My average cost is 114. So that's interesting. I'm in the red, but I'm making money on ' covered calls'. The interesting thing here is that my 'covered call' is at 105 , so it's in-the-money, and by a significant amount at that.

But again, we see the same story where I'm making a lot of profit on the option itself. And that is once again because I apply the 'wheel' strategy over a longer period and because I roll over, allowing me to collect a lot of premium by timing it well .

Okay? Well, I'm not a big fan of timing trades, but you know, timing is important, and when I look at technical analysis , if I can do my best with the timing, then you eventually catch a huge premium and, you know, even if it If the stock is 'in the money', and Robinhood is about 9 dollars 'in the money' here, I am still 9,000 dollars in the plus.

And I can actually grow much further because I am only 15% up with this option. The value of this option is another 50,000 dollars more. Well, I won't be able to get all of that because this option is already 'in the money' and, you know, there is some time decay and theta, but the more an option is 'in the money', the less time decay and theta there actually is.