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All right, independent investors, man, it's good to be back,

Today I want to talk about the simple idea of a covered call, but in more depth than ever before. By the time you finish reading this you will see the complete, and utter freedom that comes from placing this into your investment system. You understand where to find stocks to buy and sell covered calls on and you will understand the best covered call to sell for profit.

Here's what I would love for you to understand: I've talked about this before, how easily your income is replaced through the stock market when using just a covered call without tacking on the whole profit cycle system to it .

If you have any kind of chunky money, you can begin doing this at the next market open and start seeing benefits from a week from now! Good luck

Think of your gross monthly income.

I'm going to put down here $5,000 for simple math.

Now, 20 times that figure, so $100,000 for my example, whatever yours is; and then think about if you could earn 3 to 5% a month on that money. How much would you actually have to work after that?

I know you're thinking, "Well, yeah, that's all easy math, but how does that add up to having that income?" Well, if it took you ten years to build up a $100,000 figure, would it be worth it if you knew you could make 3-5% a month on that money? For the rest of your life.

I would say yes.

Once you get really good at this and you've got chunky money, 50, 60, 70 thousand, you don't have full retirement, but maybe you do 7 to 10%. One month you put back 5% of it into the growing income replacement account, but now you've got this extra right 3-5%!

This happens when you get so comfortable with this techinque you can start doing it more than once a month or doing the covered call on more expensive stocks.

Now you have your income plus a side large amount of money that can:

This is the power of the covered call.

What I like to do is find a stock that I know is a relatively well-known company, and it does have to fit your money criteria.

That is why I say so vehemently that you need about $10,000 to $15,000 to really do this well, because you have to be able to buy 100 shares of whatever stock you're selling covered calls with.

I will give you some examples of a few stocks that I've done covered calls with this year.

The idea here is that if you get called out, it's not a big deal, because it'll increase your profit, and you're not married to the stock.

If you do this on a stock that you really do want to keep, that is the biggest downside: you can get called out and have to sell your stock for the price that you chose to sell it for when you agreed to sell the call. That is the red flag for this strategy.

The easiest way to do it wrong is to buy a stock. Let's say it's at $30 and immediately sell the $25 calls, which enables you to get paid more money because it's in the money, but you bought something for $30 and have to immediately sell it for $25. You could very well not profit enough to make it worth your while.

You lose $5 a share on the sale of the stock. You're certainly not going to make that up with the option, with the bid price of the option that you're selling the call for, so don't do that. Do this instead

take this list:

I did a lot of trades on Intel, and here's one that I did.

This is a strategy that works well if you follow a stock like Intel. Learn its earnings patterns and how it moves during and out of earnings times, and then you do it during the earnings season, which only happens four times a year. You're going to understand why the 5% is still achievable if you do this only during the earnings times. You've got the catalyst.

August of last year. I bought INTC for $20.17 a share. I held it as it went through earnings and had the momentum, and then at $24.13. I sold the $23 calls.

Now, immediately, it's a dollar less, so I did get called out pretty quickly, not right then, but I sold the one-month-out time $23, which is in the money, yes, but I already had the buffer. I made $2 a share per contract on the sale of the option, and then when I got called out, I made $3 a share on the actual stock because I got called out at $23 what I had bought for $20. I got roughly $3 a share times the $2 a share per 100 shares, which was a total of $500 per 100 shares a 25% return.

Now you have a simple strategy which you can go and work in and mold into what you need to make happen for your income replacement, because you have your number and you have a list of stocks that you can start building on your own.

I recommend you go out and find stocks that have three criteria:

The company stock is relatively on a rise, with a weekly or monthly chart trend going up, and the company has options that you can regularly see selling a month-out-in-time option that'll give you a dollar or more bid per share.

Those criteria, if you meet them, will allow you to regularly profit, in my opinion, even if you do this outside of earnings. If you do it during earnings, you'll see a stronger return, nothing is guaranteed, but I believe you could net 60% a year.

Now what I did last year was a total of 99% return with this strategy. In the next newsletter, we will talk more about ways to put this on steriods. Maximizing the profit you make off one trade. More money without extra effort.

The win isn’t the trade — it’s sticking to your plan. Protect capital. Stay intentional.
Keep going. You’re doing the hard part most never will in order to eventually live like most never can.

This newsletter is for educational purposes only and does not constitute financial advice. Always do your own research and consult a professional before making investment decisions.