The Wheel Options Strategy I Will Use For Life

TITLE: The “Wheel” Options Strategy I Will Use For Life CHANNEL: The Cashflow Academy DATE: 2026-05-22 ---TRANSCRIPT--- Today, I’m going to show you an amazing options strategy that generates income every single month, no matter which direction the market moves. It’s called the wheel strategy. It’s repeatable, it’s effective, and best of all, it’s simple. My name is Noah, and I have been trading and investing for just shy of 30 years, 29 years now. And one of the biggest things that I’ve learned is that the vast majority of traders are bleeding money every month trying to predict the market. For the well-educated options traders, selling premiums is our bread and butter. If you want to increase your chances of becoming successful with options, you’ve got to stop solely trading direction and start letting time work for you. And to do that, you’ve simply got to have the right core strategy. Otherwise, it’s game over. And in today’s video, I’m going to show you how to use the wheel strategy in just three simple steps. I will present it the exact same way it was shown to me 21 years ago, all the way back in 2005, and the same way I have taught thousands and thousands of other traders. We’ve all used this system to acquire great long-term assets that can generate regular cash flow month in and month out. Then, after explaining the three-step strategy, I will take that process and walk you through a live example so that you know exactly how it works and how to apply it. Plus, I’ll show you the secret sauce that will help you execute this strategy without fear. So, let’s jump into the first three steps, and then I will show you that secret sauce, those two secret steps, that make this strategy so tasty. Step one, pick your wheel stock. Not just any stock. This is the step most people skip, and ignoring this first step is why most people who try the wheel fail. Our core criteria is simple, a fundamentally sound stock you genuinely want to own at the current price and would be thrilled to own it at a lower price. Not a gamble, not a speculation, a solid company we genuinely want to own long-term. This stock [snorts] must be liquid. It must have plenty of liquid options with consistent trading volume and healthy premiums. I’m going to show you my personal filtering process so that you can see how easy it is to find stocks on your own. I’m going to walk you through that process over here on Finviz. So here on Finviz, we start here on the screener and I always start out here on the descriptive page and I go over here to where it says optionable and shortable and I choose option and shortable. Not that I’m planning on shorting the stock, but I want all options and choices on the table for us. So that’s the first filter. Then I want to see super liquid stocks. So I’m going to look for an average volume of over 2 million shares. That makes sure we got plenty of trading action going on and that usually ensures that we have relatively liquid options. Not always, but that’s what we’re looking for. Then I like to filter on price. You can select any price range you want. Typically, I like to filter out some of the lower price stocks. So I’m going to look for stocks over 50. You could also set a top end on that if you wanted to so you limit the price range for stocks that you’re trying to find. Okay, we’re already down to 552 candidates. Now we’re looking for a fundamentally strong stock and I want to pay a fair price for it. So one of the easiest filters to use is the price to earnings ratio. That ensures that we’re getting a fair price for the company compared to the earnings they produce. A healthy PE ratio means we’re going to get a fair price. Price is what you pay, value is what you get and I want to see that under 30. So I’m going to click on that. Okay,

[snorts] now we’ve narrowed it down to just 191 candidates. Plus, I would love to have a growth stock, something that has some upside growth potential for potential capital gains. I’d love to buy an asset that goes up in value. That’d be awesome. So, we’re going to go over here to the PEG ratio, which is a price earnings ratio with a growth multiplier. And what we’re looking for is a low PEG ratio, which indicates growth potential. And you could scan for under one if you want to be super picky. I want to set it for under two cuz I think a grow a PEG ratio of 1.5 is just fine. So, we’re down to 127 candidates. That’s a pretty good field to pick from. Now, what I really want to find is a stock that’s strong, that’s gone on sale. So, [snorts] I’m going to hit the technical tab and do two really simple filters. I’m going to look for a stock on here on the performance tab that’s up on the quarter. So, I’m going to go quarter up. And you could set percentages if you want to. I’m just going for a generalization right now. We’re down to 49 candidates. And then on the performance tab, too, I’m going to look for stuff that’s on sale right now. And so, I’m going to hit here. I’m going to look for month down. And there we have it. We have just 12 candidates and a really good list of stocks. Now, the stock we’re going to use in our live example is no longer on this list. It was there yesterday. I should have made this video yesterday. And it was there all last week. And the only reason it’s not on these results right now is because the price went up. That stock is E O G. EOG Resources, and they’re a great company. But you can see the list here of stocks that you got. You got Alcoa, you got Intercontinental Exchange, Microsoft, Netflix, Shell Corporation. There’s a handful of great companies there. And it’s incumbent upon us to do the deep dive on the fundamental research, which I have done on EOG. But that’s a whole separate video. So, we’re going to with EOG. Now, once you have your stock, step two is where you start getting paid, and it has two possible outcomes. Either one works in our favor. Step two, sell the put. We’re going to make a simple promise to buy the stock that we selected at a price that we want to own it at. Now, how we select our strike price is important, and which expiration date we choose for that options contract is also important. Typically, we’re looking to make that promise for the short term, just 30 to maybe 60 days on the high end. And the amount of premium that we are looking to receive is also important. We’re typically looking to get at least 1% on the price of the stock, more if it’s available, but 1% is what we’re looking for. And really, there’s only two outcomes. Either A, we get to keep the premium from the put we sell, or B, we end up taking ownership of the stock. Let’s walk through it. So, here we have a one-year price chart of EOG, EOG Resources, and they are in the business of selling natural gas. Good old clean-burning natural gas. The demand for fossil fuels is going nowhere but up, and with the AI arms race, the AI race, the demand for energy is going up and up and up, and you can see that reflected in the price. This stock has been on a tear. It’s been running up, and what we scanned for was a fundamentally sound stock. This one happens to pay a dividend. It’s got a tidy little dividend. Those come in like clockwork every quarter, so we like that. And it’s fundamentally sound, and it’s recently gone on sale. And we like that. There’s also a beautiful chart pattern here that I love to see on a chart. It’s called the double bottom, and it comes down to 130, boom, the buyers step up, they drive the prices higher, it gets out to 140, they take some profits, the earnings announcement came up, which by the way was fantastic, and the stock price [snorts] dropped back down to 130, but they bought the last time it went to 130, and this time when it came down to 130, it found that same bottom again, and now it’s going up. And that’s the only reason it didn’t show up in our scan is because it’s been going up for the past couple of days, and it went up enough today that it fell off the scan. But there we have that pattern. The pattern is simple, it’s clean, it’s the W pattern. Winner, winner, chicken dinner. When we see a W on our price charts, we love it. It is fantastic. Another thing on this chart that I love to see is this old price ceiling back here, where the price stayed down below that 130 range, and that old price ceiling has become the new price floor. We love to see that. This is called resistance, old resistance. The price The market didn’t like it at that price at that time. It came up towards that 130, and it said, “Hey, is this stock worth more than 130?” And the answer was no. It said, “No, it’s not worth more than 130,” and the prices went down. It got down towards 100, and people gobbled it up, and the prices they drove it higher and higher. And then the next time it got out to that price level, the answer went from no to a resounding yes. The price broke out above that on high volume, lots of participation, and prices ran all the way up to 151 before they came back down on sale. And remember, the last time it got to that price level when it broke out, the answer was yes. So if it’s worth more than 130, well, clearly it’s not worth less than 130. And so when it [snorts] got down to that price zone, people said, “Yes,” again, and they snatched that price up and they tested it again. Yes. And when we get three yeses on a price chart, we say yes. We like it. We like what we see here. So, this is an interesting stock and I wish, boy, I wish we had bought it at 130. So, I feel really comfortable and confident making a promise to buy the stock at that price right now. And I’m willing to make that promise for say the next 30 some odd days. So, now what we’re going to do is we’re going to go over here and we’re going to look at the options chain. We’re going to go to the trade tab and we can see the options chain here and there’s lots of expiration dates to choose from. We have May 15, we got weekly options, we’ve got June contracts, July contracts. June’s the sweet spot right there, 35 days until expiration. So, that’s the option chain I’m going to choose. And over here on the right side of this screen, we see the put options. And here in the middle, we see the strike prices and we can see the stock price right here. It’s up at 136 or so at this moment in time. And I’m thinking we make a promise to buy it down here at 130. That’s the put price we’re looking for and that price is currently going between 240 and 260. That’s the bid ask spread, the bid and the ask and we typically split that. So, we can get $2.50 when we split the spread. Each contract is worth 100 shares. That’s what we call a round lot. So, if we promise to buy 100 shares, we are going to get paid $250 for making that promise. And because it’s at $130 a share, we need to have $13,000 in a cash account or an IRA style account like a an IRA traditional or a Roth IRA, that would be fantastic. And if you do this in a margin account, you only need to have 50% of the capital, so you could do this with a little bit of leverage with a margin account and get a little bit more bang for your buck. Now, we said that we wanted to collect at least 1% or so. So, let’s do the math. Let me grab my little calculator here and let’s take those numbers and punch them in. If we get paid $250 for promising to buy the stock at 130, we can divide that 250 by the $13,000 cash requirement. That’s called a cash-secured put and we hit equals and we can see the answer is .019. We’re looking for at least 1%. If we multiply that by 100 * 100 for a percent, that spits out the answer 1.92%. That’s a fat and juicy premium. I like that. That is juicy. And we could take that and I’m going to show you how we negotiate price real quick. We’re looking to sell one June contract of

2026. $130 strike price. We’re selling the put and we are going to ask for that mid price. We’re going to negotiate it up to 250. Whoop, just like that. We’re asking for 250 and before I send that order in, I want to talk about the risk rewards and probability on this. There’s really only two outcomes. I’m going to right click on that and send it to my analyze tab. Now, what we’re looking at here is a risk graph and if you are going to be using the wheel strategy like you should, you want to become intimately familiar with risk graphs. They’re easy. They’re awesome. You’re going to like what you see here. So, I’m going to go ahead and grab my little drawing tool here and highlight a few things for you. $0 is the break-even point on any transaction, and above $0 is profit. You can see that goes up 500 to 1,000. We love profits. Those make us happy. And below zero, there is risk involved. So, if we go change our color to red, we can see that the risk is below that, and that’s never going to really make us sad with the wheel strategy. And of course, if you don’t know what you’re doing, you can make you grumpy. But we understand how to control the risk, so we’re going to have an even temperament here. Let other let it stress them out, not us. We know what we’re doing. So, here’s what else we can see. The stock price is down here at the bottom. This is currently trading near 136, and you can see where the price goes up, 137, 138, 139, 140. That’s where I think it’s going. I think it’s heading up towards 140, or the stock prices could fall, 135, 134, 133, 132, 131, 130. That’s the price we are promising to buy it at. Want to own it there. That makes us happy. And that’s a good deal. And what we see here is a reward above the zero line. There’s $250 of reward. That’s the maximum gain when we sell the put. That’s the most we’re going to get paid. And we can see that at the 130 strike price, that’s where the risk graph bends. And since we got paid 250, or $2.50 per share, the break-even point right here, this little red line where it crosses zero, that’s down here at 127.50. That’s where we would break even, 127.50. If we get paid 250, so right out of the gates, we’re actually having a lower cost base than people who just buy the stock alone. So, there’s even less risk involved. And that is awesome. And again, we mentioned there’s really only two outcomes possible. If the stock stays above 130 and continues to go up or stay the same, we just get to keep the $250. We get to keep that premium and do it again next month. Keep our cash working for us. If it goes down below 130, well, then we would get assigned the stock. We got paid 250 bucks. We get to keep it. If it goes below 130, we could end up getting assigned. And what’s really, really cool here is we can actually check out the probabilities of that. Now, in the Thinkorswim platform, if we go over here, I can set the price slices to break even at expiration. And that will move this little hat this little dotted line here to the break even point. And there’s a better than 72% chance we stay above the break even point and maybe a 27% chance it heads below that. I’m going to drag that up to the 130 strike price and set that right there at 130 on the dot. Statistical probability that we end up keeping the cash flow and just putting our money to work again next month is 66% chance. Another 1.9% ballpark next month, too. Maybe more, maybe less, but in that ballpark. And there’s a 33.78% chance that we end up owning the stock. Either one of those outcomes is just fine by us. I’m excited about this trade. I like what I see here. Now, there’s always some skeptics out there, some worrywarts, who ask, “Well, Noah, what if the stock price goes down after I get assigned? What if it keeps dropping?” Well, we can do steps one and two with more confidence when we understand how step three can help us continually lower and reduce our risk. Plus, the secret sauce, we know how to protect and cover our assets. So, we can do the wheel strategy with absolute confidence. Step three, sell the covered call. Now that we own the stock, we’ve been assigned the stock, we’ve bought the stock, we own it. We’re not only eligible for that dividend that’ll come in every quarter like clockwork, that’s passive income, we’re also now able to sell covered calls and generate extra income and extra compounding power. And typically what we’re doing is we’re looking to sell calls way out of the money, out above resistance at price levels where the stock is statistically not likely to go. And we’re typically looking to collect around a 1% premium, somewhere in that ballpark, maybe a half a percent on a skinny premium month, maybe a full percent or better on a fat premium month, but aiming for that 1% ballpark every 30 to 60 days or so, so we can keep that income coming in regularly. And if we can do that every 30 days or so, that means we could probably pull off covered calls about 10 times a year. We don’t always get 12 of them in all the time. About 10 months out of the year we’re able to write covered calls and pull in that premium. And if we’re getting about 1%, well, that means we’re generating an extra 10% in compounding power. And if we only get 5%, that’s fine. If we end up getting more than 10%, 12%, 11%, 13%, that’s even better. Doesn’t matter, it’s the consistency that counts. You’re going to love writing covered calls. It’s easy. Click and get paid. Let me show you how that works. If we were to come here to this EOG risk graph and add a simulated trade and imagine for a moment we were assigned the stock. I’m going to click on the ask price and that puts that into our risk profile. We now have 100 shares down here. I’m going to go ahead and delete that put option, so we’re just dealing with the stock. Now we’re making a promise to buy the stock down at 130. So, I’m going to go ahead and type in 130, assuming we got assigned. And what we’re going to do is we’re going to model out a covered call. Now, right now the market’s trading at 136, and if we assume we own the stock at 130, well, that means we already have about $600 in capital gains. That’s not always there, but that’s not the point. We’re going to use the example of the front month covered call to show you what kind of income we could potentially generate. If I go over here to the add simulated trade button, that’ll open up the options chain for us. We could choose those same June covered calls about 35 days out. That will give us a good example of what a typical covered call could potentially yield. The calls are over here on the left. You can see where it says calls right here, and the strike prices again are here in the middle. And we’re going to scroll out here and look for a price out of the money. Let’s get our eyeballs on that stock chart one more time. There’s a resistance zone out here near 145, but that’s pretty close. I’d feel much more comfortable selling a covered call out here at that price ceiling at 150. That is way, way, way out there. The statistical likelihood that the stock rises out there for the next 30 some odd days, it’s possible, but it’s probably in the ballpark of maybe 20 to 30% probability. I’ll know more here in a moment. Okay, so back here on that simulated trade tab, we can see the strike prices here in the middle and the call side over here on the left. And we look down here, we can see the 150 strike price that’s out there at that resistance level. And the current bid ask spread, there’s the bid price, there’s the ask price. The current bid ask spread is between 115 and 130. I just saw that at 135 a moment ago. So, that means we can split that bid ask spread. So, if we click on the bid price when we want to sell something, we click on that bid price, and we can look at that and we can ask for a buck 25. And if we get paid a buck 25, that means we collect $125 for the next 30 days. Let’s do the math on that again real quick. If we collected a buck 25 or $125 on our initial $13,000 investment divided by that $13,000, that would equal 0.0096. That’s just shy of 1%. So, again, times 100 for a percent, we’d be able to pull about 0.96%. That’s awesome. That’s perfect. That’s exactly what we’re looking for. So, I know that options on this stock that far out of the money right now are generating in that ballpark, you know, about 1%. If I went a little bit higher, I could still pull 65, 70 cents in that ballpark, which would be closer to a half of a percent, but it would have a lower probability of getting called out. Now, if we did that, there is two possible outcomes. If the stock price rises out above 150, you see that caps our gains because we own the stock down here at 130, awesome. If we made a promise to sell it all the way out there at 150, well, there’s 20 points, 20 points, PTS, 20 points on the table there. And if we bought it and the stock was called away at 150, that means we would make $2,000, which would be an awesome outcome for us if that happened, and we’d get to keep the 125. So, the maximum gain out there, if you look down here in the bottom left corner, you can see it when I point to it, That would cap our gain at 2,125. That would be a fat enchilada. It would be awesome if that happened. It’s not very likely though. The statistical likelihood that it actually gets out there past that 150 strike price is about 15% ballpark chance right now. That means there’s an 84 some odd percent chance that we just get to keep the money and write another covered call again next month. Keeping that compounding working, keeping the wealth wheel cranking. So, if we get called away, that’s not a problem. We love it. We got paid to sell the stock at a higher price. And then we simply go back to step one or step two and we run the play again. We keep the wealth wheel cranking. That is the wealth wheel. You get paid to wait for the stock while you’re waiting to buy it at the price you want. You get paid while you hold it and you get paid when you sell it. Every single month we’re generating that income. So, the full cycle of the wealth wheel is simple. Step one, we pick the right stock. Step two, we sell the put and get paid to buy. When we own the stock, we collect any dividends that they pay us and every month we do step three, we write that covered call. And then don’t forget, I got two secret sauce steps that I’m going to show you here in a moment. Now, all of that sounds great in theory. But, let me show you what this actually looked like in a real trade, a real live example. Not a hypothetical, not a back test, not some cherry picked nonsense, a real wheel position that we managed step by step over the past 12 months inside of our mentor club. Every Monday we planned the trades. We placed the trades. We managed the trades. We reviewed the charts. We looked at the probabilities, and we posted the updates for our students. And once you see how the cash flow starts stacking, you’re going to understand why we love this strategy so much. Let’s go check out that Coca-Cola example I told you about. Starting back in May of 2025, the wheel starts turning. We kick this thing off by buying 100 shares of Coca-Cola at $71.64. Now, most investors stop there. They buy the stock, cross their fingers, and hope it goes up someday. Not us. Why? Because we know how to crank the wealth wheel. Not only did we buy the stock, we immediately sold a June 70 cash-secured put for a buck 20. Click, get paid. That’s $120 in instant premium. Then, we simultaneously sold a June 75 covered call. Another 51 cents. Another click. Another $51 hits the account. Just like that, May cash flow is $171. We’re keeping a running total, $171 in our pocket. Now, that’s a fun way to start an investment. And the crazy part, this whole process took maybe 5 or 10 minutes because we know what we’re doing. Now, we roll into June, and the wheel just keeps on spinning. June 13th hits, and we wake up to our first dividend payment, $51. Passive income deposited into the account while doing absolutely nothing. That’s a great feeling. Running total, $222. Third Friday of the month, the options expire worthless. We keep all the premium, sell another out-of-the-money put, simultaneously sell another way out of the money covered call and collect another $55 in premium. Our running total is $277. Now July rolls around. More covered calls sold, more premium rolls in. Click and get paid. Another $96 in our pocket. Running total $373. August rolls in. Covered calls at the 74 strike and 75 strike. Tiny debits to close out the previous month’s trades, just five bucks per contract. Net income of $47. At this point, the position starts feeling less like a stock trade and more like owning a rental property that keeps sending monthly cash flow checks. Our running total is up to 420 and we’re feeling good now. A couple more quick trades at the end of the month, clickety-click, another $46. Set the alerts, easy-peasy. In fact, a lot of this can be automated. Our running total is up to $466. Mentor clip students are loving it. September rolls in with the fall weather. Close last month’s covered call for five bucks. Turn around and sell a new one. Net credit $51. Then, right on schedule, every quarter, boom, another $51 dividend payment lands in the account. Running total now pushes higher, $568. And psychologically, this is where it starts getting addicted because now we’ve got premium income, dividend income, and a potential Q4 bull market queuing up, all working together at the same time. October and November. Call sold, premium collected, tiny debits to close out trades. Reload the wheel. More credits. The cash flow machine just keeps humming. Another $90 in net income. The running total is now up to $653. This is one of the most powerful things financial education does for people. Most people only know how to buy a stock and hope. This extra premium, this extra income, this is extra compounding power. And it doesn’t magically appear. We’ve earned the right to generate this kind of cash flow because we invested in developing the skills first. And the management time? It’s It’s minimal. A few minutes here and there. That’s one of the things people don’t realize. This strategy is designed to work with your life, not [snorts] consume your life. It’s December now. Another dividend payment, $51. Just in time for Christmas. And right around then, Coca-Cola quietly raises their dividend. Now we’re collecting about $53 every payout cycle. That feels really good. Close out [snorts] a couple covered calls and sell a new one. Another $31 added to our asset column. Running total is at $735 of passive income. We ring in the new year with another $35 in January. February rolls around. Love is in the air, and we are loving another $141 of sweet sweet premium. Cupid’s arrow has us falling in love now. The stock is rocking, and the capital gains are whispering sweet nothings into our ears. Love you long time, baby. $911.

[snorts] March rewards us with another $59 in premium, plus another juicy dividend. This time Coca-Cola bumps it up again to $53. And just like that, we break $1,000 on our running total. April [snorts] rolls in and things are warming up. We’ve got some spring fever and a fever for more cowbell. Another $53 hits our account. Telling you, fellows, you’re going to want that cowbell. Then we finish out the year. Back in May again with another $55. Another trip around the sun completed. A grand total of $1,131 of cold, hard cash flow. By the end of our 12-month run, about $925 collected in option premium and about $206 collected in dividends. Gross cash flow generated again about $1,131. Minus roughly $19 in commissions. $20 in commissions, that’s a bargain. Net cash flow generated about $1,112 on roughly a $7,000 position. That’s approximately a 15.5% cash flow ROI in [snorts] just 12 months. And here’s the knockout punch. That doesn’t even include the unrealized gain on the stock itself. Here’s a little hidden Easter egg most people miss. Along the way, we actually had two of those options exercised. At [snorts] one point, the shares we originally bought at $71.64 got called away at $72.50. So, not only did we collect all that premium, we quietly pocketed another $86 in capital gains on the stock itself that we haven’t accounted for. Then later when the stock dipped, we got assigned on a $70 put that we had sold, which means we ended up owning the exact same 100 shares again, but now at $70 a share. And with KO now sitting at $80, that’s over a thousand dollars in unrealized appreciation on the stock itself. That’s another 14% ROI sitting on top. So, while the stock appreciated, the wealth wheel was paying us the entire journey. That’s the wealth wheel. We get paid to buy low and we get paid to sell high. Wow, those are some fantastic numbers. Incredible rates of return. You’re going to make Wall Street envious at those numbers. And by now you’re probably thinking of all the crazy ways you could spend that money on cool things, but what if we approached it from a different angle and reinvested that money into accumulating more shares? The amount of compounding that we could accomplish if we had more and more shares is going to absolutely blow your minds. We’re going to do a thought experiment where we extrapolate that data out over the next 5, 10, 20, 30 years and you’re going to see what could happen over the lifetime of an investment. It is impressive. Here we go. Here is a killer spreadsheet. What I did is I took all of the data from the last 12 months, exported it out into a comma separated value, plopped it into AI, and had it help me generate this spreadsheet where we took that data and extrapolated it out over the next 5, 10, 20, 30 years. And you can see the current numbers. We are already familiar with those. Plenty of cash flow. Here’s the cash flow over the last 12 months. We had an ice breakdown. 19% of the money came from dividends. 81% came from the cash flow with the options. And check this out. You can see the compounding engine really working. If you extrapolate that out over 30 years, by the end of 30 years, that is cranking out about $34,716 in annualized cash flow. Every time you unlock another round lot, another 100 shares. 200 shares, 300 shares, 400 shares, 500 shares. The numbers go up and up and up and up. And that monthly cash flow can be pretty serious, enough to pay some bills for sure. [snorts] Now, there’s this cool concept called the rule of 72. And I’m going to flip over here to this ROI dashboard. You can see the rule of 72. I don’t know why this works, but it does. You can take the ROI, you take the number 72, and you divide it by whatever percent ROI you get. The market’s average return over the last 100 years is 10%. That’s solid. 72 / 10% = 7.2. Now, that would be 7.2 years. Here’s 10%. 7.2 years, 86.4 months. That’s solid. Now, if you’re in a mutual fund pulling 5, 6% annually, you’re in the slow lane. You’re leaving money on the table. We pulled off 15% in cash flow just selling covered calls and collecting dividends. That takes 4.8 years on average to double the money. 57.6 months. Now, we’re moving. That’s awesome. Now, we actually pulled 30% on that stock the last year. And we’re not going to get that all the time. That’s seriously atypical. But that’s just 2.4 years to double your money, 28.8 months. And that is rocket fuel. But to do that, you got to learn to respect the risk. Now, back to the dashboard. Check this out. Now, if I scroll down to the bottom here, you can see this compounding curve snapshot. And that is the magic right there. This is the money. You can see that that takes a while to get going. It really starts kicking off about 15 years into the process, which would be at around a $50,000 level. And if you already have $50,000, you could start out doing this in that ballpark right there. If you have $100,000 to your name and you’re sitting on some money, maybe you have an old 401k, you know, respectable amount of money in there, but not enough to retire on and you’re wondering how you’re going to make ends meet, well, you could be starting out somewhere right here at that point where this thing gets critical mass and starts cranking. And you could shorten the distance to that goal quite a bit. Now, if you got $200,000 in the account, boom, you’re starting out right here. It doesn’t matter where you’re starting out from, but what does matter is that you get started today. If you’re interested in learning how to drive the wealth wheel yourself, how to do this for real, check out the links below. We have a web course you can take that’ll help you get a deeper dive, learn the concepts, and you can become a member of our community. Now, one last thing I want to show you right here. I’m going to go click on this dashboard one more time and I’m going to show you what happens if you don’t reinvest the money. If you stick with the same 100 shares, you have one contract, you’re going to average somewhere around 10% of that annually. You’re going to make 1,100 bucks like we did in that example. If you reinvest just the dividend, you’ll double the money over 30 years, you’ll wind up with two contracts and double the cash flow. But if you go all in the way that this thing modeled it out, you’d wind up with 4,000 shares, 40 contracts, and an annualized cash flow of about $44,000 on the high end. I used a couple of different math models to extrapolate that data out. And again, we’re relying on a handful of assumptions. A 15% average rate of return, no other variables, which is not super realistic because there’s always going to be variables, but the one thing I can guarantee is I’m always going to be able to write covered calls. I’m always going to be able to write cash-secured puts. I’m always going to be able to collect dividends. And I’m always going to be able to benefit from capital gains. Now, there’s risk involved. That’s the problem. If you don’t know what you’re doing, you can get into trouble with this fast. You can get into trouble with investing in fast, especially if you don’t know what you’re doing. Doesn’t matter what kind of investing. But, when you know what you’re doing and you know how to control and mitigate the risk, it takes the fear out of it because yes, the market can crash. The stock could go down. The company I chose could get into trouble. All of those things are possible. But, with the right guidance, we can learn how to cover our asset. We can learn how to mitigate the risk. And that’s the secret sauce I promised you I would show you. Let’s go do that live example right now. All right, so here we are back on that chart of EOG. We’ve laid out the premise. We’ve got a good game plan. I’m going to go ahead and set this trade to go. I’m going to go to my trade tab. This is a real trade. I’m going to go here to the 130 strike price, click on that bid, open it up. Right now, I can get 260 out of it. That’s a little bit better. The market’s closed right now. It’ll probably not get filled until tomorrow, but I’m going to ask for $2.60 per share on one contract, 100 shares. We need to have $13,000 in an IRA account or half of that in a margin account. And I’m going to make that order good till canceled. I’m going to go ahead and click that button, confirm and send. It pops it up. It runs through the specifics with me. Technically, because I’m getting paid the 260 bucks, I only need to have $12,740 because I actually don’t have $13,000 worth of potential risk. I only have $12,740 cuz they’re paying me 260 bucks to buy this. I love it. Going to go ahead and send that in. So, there we are. There’s our pending order. We promised to buy the stock down here at $130 [clears throat] per share, and that’s the most important price point. I need to pay attention to that. This I don’t need to baby sit this. If the stock stays sideways to keep the 260 bucks. That’s mine to keep. If the stock goes up, I’m going to wish I had bought it, but I’m not going to feel bad because I made 1.9% 1.9 plus percent on my money in 35 some odd days, and I’ll write another cash secured put next month. If I get assigned, awesome. I wanted it 130. So, all I really need to do here now is I need to set an alert. I’m going to go right click on this chart. I’m going to go create an alert, and I’m going to say, “Hey, if EOG stock is at or below that 130 price point, 130, okay? And then I’m going to write a little note here. Dear Noah, you are tough and handsome, but your cash secured put needs your attention. Love, Noah. Bam. And I’m going to go ahead and create that alert and send it in. Now, if at any point in time the stock price dips below 130, I’m going to get an alert on my phone. It’s going to let me know that I need to pay attention to it. And if I get assigned, awesome. I now own the stock. I’m eligible for the dividend, which is not going to be for another month or two, but I’ll get it, and awesome. I can now start writing covered calls. And if something crazy’s happening in the market, that’s why you need the two secret sauce steps. Let’s talk about those right now. Now, if we end up getting assigned the stock at 130, the risk we have is if the stock keeps going down. As you can see, when you own the stock, the risk is it goes all the way down to zero. You could technically lose everything if EOG went out of business, not likely, but possible. And you also have unlimited upside potential. If the stock continues to rise, we get capital gains, we laugh all the way to the bank. That’s awesome. But, where everybody gets hung up is what if the stock goes down? They don’t know what they’re doing. Well, the good news is you can protect it. There’s two techniques you need to learn. The protective [snorts] put and my secret weapon, the protective collar. Now, knowing how, when, and where to put those options on is where the education comes in. If you don’t know what you’re doing, you could do absolutely stupid stuff. You could get it wrong. But, if you do know what you’re doing, you could very easily go in and you could insure the asset against a loss. For example, right now, if we went and bought a protective put at 125, we could buy a little bit of insurance. It’s an expense, a business expense. We’re in the business of protecting our assets. That puts a floor on the risk graph. It limits our risk to the downside. We’ve covered our asset. We’ve protected it because we know how options work. And there’s a lot of things you need to know about options to trade them correctly. And so, it’s important that you get yourself educated here. The WELP will unlock the power of compounding. It’s a no-brainer. If you found value in this training, which I know you did because we showed it, click the like and subscribe button and join us. Become a member of our community, the Cash Flow Academy. We’ll see you in the next video, which you can click on the link right here.