🧠 When we open the trade - We sell a covered call - Example: $0.90 premium 👉 That’s $90 per contract (100 shares) Money in our pocket upfront 💰 ⏳ What happens next - Time passes - The option loses value Now it might be worth $0.05👉 That’s just $5 🔄 Closing it out We do the opposite trade: 👉 Buy to close for $5 💰 The result - Collected: $90 - Paid to close: $5 👉 Profit: $85 🔑 Why we do this - ✅ Lock in most of the profit - ✅ Preserve our shares (we keep the stock) - ✅ Remove risk - ✅ Ready to sell another call - 🎯 Simple takeaway Sell for $90 → buy back for $5 👉 Keep ~$85👉 Keep your shares👉 Repeat the process 🔁

Sell fear. Buy it back cheap. 📊 The Trade (4 Contracts) Before Earnings➡️ Collected: +$1,435.96 After Earnings➡️ Closed: -$112.00 💰 Profit 👉 ~$1,324 🧠 What happened? - IV was high before earnings → we sold premium - After earnings → IV crushed👉 Option value collapsed 🎯 Takeaway 👉 No big move needed👉 Got paid from volatility + time👉 Captured ~90% of the premium

Let’s break this down in simple terms so you can clearly see how this works. 🧠 The Setup (What We Did) - Stock: Coca-Cola (KO) - We own: 300 shares - Sold: 3 × $80 Calls - Expiration: Apr 17, 2026 - Premium collected: $267.99 👉 Think of this as collecting 3 deposits upfront 📊 Where We Are Now - Days left: 3 - Current option value: $2.00 per contract - Total to close: $6.00 - Profit: +$261.99 - Return: ~97% max profit 💡 What This Means We sold 3 contracts and collected $267.99 total Now those same contracts are only worth $6 combined 👉 That means: - The buyer lost almost all the value - We’ve already captured almost the full profit 🔑 Why We Close Early Even with a few days left… We don’t wait around for the last few dollars. We close because: - ✅ 97% of profit is already captured - ✅ Avoid last-minute volatility - ✅ Lock in gains - ✅ Free up capital for the next trade 💰 The Reality - Collected: $267.99 - Cost to close: $6.00 👉 Net Profit: ~$261.99 🎯 The Big Lesson This is the real edge: Don’t chase the last few dollarsTake the win and move on

Netflix Inc. earnings are coming up and IV is high (~77%) — ideal for selling premium. 💰 The Play (Weekly) - Exp: Apr 17 (4 days) - Strike: $109 Call - Premium: ~$1.23 - 4 contracts = ~$492 income ⚡ Why this works - Weekly = fast decay - High IV = bigger premium - Positioned for post-earnings IV crush 📊 Outcomes - Below $109 → keep $492 - Above $109 → sell shares + keep $492 - Drop → premium cushions 🧠 Takeaway Get paid when volatility is high.