@socalminh: Most people misunderstand covered calls because they're using them the traditional way. Traditionally, investors buy stable large-cap stocks, collect small option premiums, and hope the shares never get called away. That strategy is built for slow and steady income. But if the goal is aggressive growth and building wealth faster, the strategy changes completely. The key is volatility. Instead of focusing only on mega-cap companies, we look for mid-cap stocks with market caps above $2 billion that historically have larger price swings. Bigger swings create higher option premiums, and higher premiums create more monthly cash flow opportunities. The second filter is implied volatility rank. We want stocks with an IV Rank between 40-80 because that tells us option premiums are elevated compared to their historical range over the last 12 months. Higher implied volatility means option buyers are willing to pay more because they believe there's a greater chance the stock could move significantly. That's the entire mindset shift: We are not chasing "safe and boring." We are strategically using volatility to create income. Our two main filters: • Mid-cap stocks with strong movement • IV Rank between 40-80 That combination is what gives us the opportunity to target higher monthly returns through covered calls. This is not financial advice. This is simply how we study options, volatility, and probability to create cash flow and teach the next generation about investing, discipline, and financial literacy. Follow for more real conversations about options trading, investing, and building wealth with your family. #CoveredCalls #OptionsTrading #StockMarket #Investing

socalminh

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Thursday 28 May 2026 14:55:54 GMT