WMT is a core long-term holding he will not sell, one whose strength carried his portfolio through the AI downturn. He expects WMT at or above 115 by March 2027 and rolled covered calls from a 110 to a 115 strike for a 35-cent debit, though the position is not guaranteed.

and I'll show you, I have over a million dollars in stocks like Google, Amazon, and Walmart—I make hundreds of dollars, even millions of dollars, and I don't want to sell because as soon as I sell, I'll have to pay taxes. Huge taxes.

Things went against me in Walmart. I love Walmart, but as you can see here, I have a covered buy position at $110, and I'm $23,000 down on this particular position. So, this is Walmart stock.

It's currently trading at $116 per share. I've made $489,000 I have a dollar from Walmart. I'm up 62% on the stock.

I've been doing very well with options, but I'm currently in a weak position because Walmart was actually a stabilization stock in my portfolio, which means it's a huge position.

I strongly believe in ... and during this AI market downturn , Walmart's stock rose . So, my portfolio outperformed everyone watching my YouTube videos. Everyone who invested in AI stocks lost money , while mine rose because my largest investment is Walmart. I made a profit while everyone else lost.

However, even though I made a profit, my Walmart covered call option has become profitable, with its price exceeding 110. Now, I have to decide what to do. Let's look at this options position.

As you can see, the price of the Walmart covered call option at 110 is currently $11 . $11 is a relatively large amount considering the number of contracts I hold.

How can I improve the situation? I don't want to sell my Walmart stock. Absolutely not , because I'd lose ... and pay too much in taxes. What I'm going to do is go trade and roll over this position.

Now, I'll show you that I can set up a new position and change the expiration date from January to March, for example. That adds two more months. I accidentally clicked on June.

March. That adds two more months too. If I roll over to 115, let's look at the calculations. I have to pay a debit, which is n't ideal, but look at this. I pay 35 cents, so a net debit of 35 cents.

It seems like a lot because I have a lot of contracts . However, for 35 cents, I can change the strike price from 110 to 115. So, basically, I make a profit of $5 and I pay 35 cents for it.

It doesn't take a genius to understand that 35 cents is a good return on investment if you roll over this position and get a net profit of $5, okay ? So, the profit I'm making here is between 35 cents and $5 Dollars, and since this option will still be profitable, right? Walmart's stock price is above 115.

As you know, this position is by no means guaranteed . Walmart's stock price could drop below 115 by the time I edit and post this video in the next 24 or 48 hours . That said, my current profit is $5, and if I believe Walmart's stock price will reach 115 or higher in March 2027, which I think it will, then it will be very tempting for me.

I've explained it to you, but I probably didn't go into detail about why I rolled over Walmart stock , for example . I told you the profit is $5, then I pay 35 cents. But what exactly happens?

Well, first, I add extra time. Extra time is better because it means the value of the option will increase. So, the more Extending your option for a longer period means you'll receive a profit.

This doesn't necessarily mean you'll receive credit, it simply means you'll receive a profit. There's extra time for this option, so you'll receive a larger profit. So, you're extending it to a later expiration date.

This is the most important equation for extending options. In fact, if you only extend the option to a later expiration date, you don't change the strike price. You'll be in a better position, right?

Next is a better strike price, so I wanted to raise the price of Walmart stock from 110 to 115, because it's simply a better strike price. I'd rather get rid of Walmart at 115 than at 110.

Very simple calculations . Then, if possible, I'd like to make a profit. The extension example I showed you was a debit, and the debit amount was very small, right? It was a very small debit for a huge bonus, which is why I was comfortable accepting it.