00:00Hello, Casey Stubbs here. How's it going? Today we're going to talk about $20,000 a week with
00:06covered calls. Of course, the market has risk. Make sure you understand that nothing in the
00:12market is guaranteed, but this is a great cash flow strategy and you can, yes, I will show you
00:18how to make $20,000 a week. Let's get started. So first thing, what is a covered call? Well,
00:26very simple. It's simple against the stock that you own to collect a premium. Well, let's see about
00:32how that works. Well, let's move my face. All right. You own one of Apple stock. Everybody loves
00:40Apple. I don't love Apple products, but it's okay. I just don't want to buy anything. Apple don't hate
00:47me. It's just no preference. All right. Next you own a hundred shares. I'd be that. Then you sell
00:54a call to collect a premium. You can easily and collect money each week. Boom, boom, boom. Do it
01:0252 weeks. Weekly paycheck. All the people that work for me, I pay them every week and they can get
01:10an
01:10additional paycheck if they do calls. It's really nice. You make a job, you work at a job and you
01:16have an extra. It's like getting two paychecks. Wow. Who would have thought? So here's the, there are
01:22some risks involved. Remember I said that on the front end, there's risks. So risk is that if the
01:27price moves up and it goes past your strice on the call, you can lose that call. Now, if that's
01:35a little bit hated and you don't understand what that means, don't worry. I'm going to explain it
01:39later. The other risk is that price moves down. Well, Oh wait, are you telling me the price moves
01:46down? I'm at a risk. And if it moves up, it's risky. Yes. Worry. So if it moves up, you're
01:52going
01:52to make money. And if it moves down money, ultimately it works great. If this goes sideways,
01:59we can collect, but if you, if you go, if it goes down, you're going to make a little bit
02:04less. And if it goes up, you're going to make a little bit less. If it goes sideways, you make
02:08the most money for the most part, you're going to make money no matter what using this strategy.
02:14Okay. Now action steps. Well, first step one to buy the shares. Step number two, sell the call.
02:24Step number three is repeat the process every week. Now you can do this monthly if you buy monthly
02:30options, but you can also do this weekly, which is going to make you more money. So we're going to
02:38do it weekly unless we just have so much money that we don't want to spend the week that it's
02:43going
02:43to take to do this process. And so my favorite type of strategy. So right now, let's go form.
02:53And so let's, I'm going to pull the platform up here and let's do that.
03:01We're going to pull the platform up. All right. Platform is good. This is right
03:08here. This is Webull. Uh, this is the platform that I am. And if you want to get some free
03:14stocks, just check the description and it's a Webull. You'll get free stocks from and I get
03:22some free shares as well. You get free shares. I get free shares. We're all a win-win situation.
03:27All right. So let's go ahead and go through here. So we're going to go step one. Step one
03:33is we're going to buy the stock. And so you'll know we have Amazon and you're going to see the
03:39chart. This is a chart on a daily timeframe. And I like to look at the charts to make my
03:44decisions
03:44here. So point down. And so I think that this is going to go down. And so where do I
03:48think it's
03:49going to be next? Well, I think it's going to be lower than this. Now, can I be right and
03:53wrong?
03:53Yes. Yes, I can. So I'm going to just put it right in at $99. That's the strike. I think
03:59it's going
04:00to be like 95 next week. Okay. So if it goes, I get to keep all of the premium and
04:07the shares,
04:08but we're going to do is we're going to buy the share. So let's do that first. We're going to
04:12buy
04:122000 shares. We just bought it, right? We bought 2000 shares of stock. Why 2000? Well, because I
04:20said in the title, how to make 20,000, 8,000 shares in order to do that. Okay. So now
04:27that we're
04:28going to, we're going to buy, we're going to sell the call. And so today I wanted to do
04:3399. Yes, I did. So we're going to do 99. So we're going to put her in at 99. Now,
04:40what
04:40that means is that 20, 20 contracts. Why? Because I have 2000 shares, 2000 shares, 20 contracts
04:51in options. One contract is 100 shares. So I know if on camera, but, uh, two, 20 contracts
05:04is 2000 shares. If each is a hundred double check my math. Okay. All right. Now, so now
05:12we're going to sell the 20 shares and we get to collect $2 and 24 cents, right? So we're going
05:17to collect $2 and we're going to estimate it. So 224 at 20 is $4,480. And remember I said
05:25$20 a week or a month. And so I hope I said month and not week. In a month, you
05:31got to make
05:32roughly 4,600 a week. So we're here. We're close. So now we go ahead and place that order
05:38and, uh, to place the order. And we just, it said selling wasn't allowed that we do it.
05:45So we place the order, we get the 4,000 that money will automatically be put out. And again,
05:51you can only do this if you own the shares. So let me explain a little bit. So since I
05:56bought
05:57the 99 strike, I bought the 99 strike. That means if price goes lower, I get a clear percent
06:04of the premium. If price goes up to 99, I'll get to collect the premium, but I'll have to
06:11sell my stock because I sold it at an option to sell at 99. So that means I bought my
06:18stock
06:19today with, I bought it at 9870. I'm going to suck at $99. So what does that mean? That
06:26means I'll make 30 cents per share of the 2000. And so we got 2000 shares and we're going to
06:33times that by 0.30. All right. We just made six. So I made the 4,000 on the premium
06:41and 600
06:42on the shares. Okay. So that's good, right? That's good. Now, if it goes down, let's say
06:48it goes down to 95. I don't have to sell the shares. I keep it. And then I sell them
06:53again
06:53next week. So as long as I hold this, I can always sell the shares. So, so here's what I
07:00said
07:01was risk goes down. If price goes down, then my shares are worth less money. So when you
07:11buy a stock, that it's a stock you believe in, because if it keeps going down forever,
07:15you're going to leave those shares. Now, however, though, if we do this for weekly and I make,
07:21you know, 5,000 a week, 5,000 times 52, that's 260,000. So it covers the care. So even
07:30if Amazon goes to zero, I could make 560,000. Now, obviously as the stock goes down, I can
07:39less on the premium. So let's say Amazon continues to drop each week. My means will be less because
07:46you can't sell options on a stock to nowhere. But again, that's why we use a good stock.
07:52The chances of Amazon going to zero, not so much. Do you buy Amazon? Anyone? I mean, I don't know
08:00about you, but I spend a lot of money with those guys. So, uh, yeah, probably not going to happen.
08:06So you want to pick a company that, and that's why I picked Amazon. All right. So now let's drop
08:12that out all the way, drop that. And let's go back to some more stuff on my slideshow. All right,
08:19more slideshow stuff. So there's another one called preferred calls. Now, uh, this is a thing that I call
08:28the smart man. I don't know why it's the poor man. Or when I told my brother, he's like, well,
08:33why don't they call it the poor man soon to be rich man? And so basically the point says that
08:38instead
08:39of buying the stock, we're just going to buy the calls. We're going to buy deep in the money calls
08:46and sell our options against those calls. So let's pull the platform back up. So I buy some calls and
08:53we're going to buy them way, way out there extended. So we're going to buy them out. Tell a thousand
09:00days in the future. Okay. And they're a little more expensive, right? But it's $26. Okay. $26. Now
09:08I'm going to buy, not sell, buy 20 contracts, the big two zero. And what's on that? $56,000.
09:18So how much did we spend on the 2000 shares? We spent 197,000. So I count by 20 shares,
09:2720 calls
09:28for $56,000. Do you guys, the math difference there, right? So I'm saving some money here. 197
09:39minus 56,000. Boom. I'm saving $104,000. So what does that mean? Well, that means that I could
09:47actually buy a lot more or use that money for something else. That's why I call it the smart
09:52man. Why if you don't have to, right? And if these calls go up, if those in the next X
10:00amount
10:00of thousand days, well, then you're going to do fine. If it down, then you'll lose money
10:04on the calls. But again, how long will it take us to make the 60, 50, not too long. So
10:09we bought
10:1020 and now we can sell, right? And we could buy them a little deeper in the money if we
10:16want,
10:16which I recommend. You could buy them 85 and it's going to cost a little more. How much
10:23more? Okay. How much is it going to cost? 73,000. A measly 73,000. Okay. So now that we
10:31got
10:31that going, we got the calls. Now we're going to go back to our weeklies and now we can sell
10:36every week against those 20 that we own, right? So I can sell, okay, every week, I can sell
10:43the 20 every single week. Okay. Place the order. How much? 4,500. So I can buy 500, $5,000
10:52a
10:53week selling against those offers. Okay. And so again, it's pretty good deal because if
11:00we do 5,000 and we times that, uh, by 52 weeks, okay, I'm going to 60,000. So my
11:07ROI is going
11:08to be much greater using what they call strategy. It's a great strategy. So either one, let me
11:14know of it. Uh, and you know, give me some comments. So it takes less capital, but you get
11:20a greater ROI. Okay. And so that's it for that. Now I want, you know, one other thing, don't
11:26forget, you can get the free stocks with Webull, but you can read about this in great detail
11:31on my website. Uh, I have, um, I have written a lot about this on my website. The link will
11:42be in the description or tail. You can ask questions either at the end of this video or
11:46at the end of the article. I just hope that that helps. Let me know if you have any comments,
11:52feedback, whatever it is, we're here for you. Thank you.
Comments