I get paid to buy stocks at prices I like, and paid again while I hold them. Options and dividends. Every trade posted. Wins and losses.
Canada
Joined August 2025
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If selling options feels complicated, start here.
Pick a stock you would actually buy.
Have the cash for 100 shares.
Sell a put below today's price.
If it stays up, you keep the money.
If it drops, you own it at a lower price and still keep the money.
You just have to start.
Last Friday I had to buy 400 shares of $LRCX at $250.
So today I asked, who wants the right to buy them from me at $250?
Same price I paid.
Someone paid me $3,328 for that.
If $LRCX is above $250 on Nov 20, my shares get sold at $250.
If it stays below, I keep my shares.
Either way, the $3,328 is mine.
Finance Twitter is worried about Neocloud debt.
Neoclouds borrow against contracts with Meta and Microsoft.
JetBlue $JBLU borrowed $2B against its frequent flyer miles.
Those bonds now trade at less than half price.
Feels like we’re heading into another week of Neocloud pain.
Brace yourselves.
As someone with a portfolio of energized land assets here is what I am seeing:
1. Neoclouds are disorganized and poorly capitalized. Some are definitely better than others however.
2. Hyperscalers are intractable, bureaucratic organizations that take 3 months to do an NDA and want 18mo escrow periods. We built our portfolio by competing against these terms because of our speed and simplicity. The more future assets orgs like ours win, the bigger the problem for the hyperscalers downstream (see 3).
3. There are delays in the existing pipeline that will catch people off guard in 2027. Hyperacalers will (obviously) react by focusing on their own internal compute needs over any third party. If the third party is a model company, they will tell them to go through their model router where they will also take a non-trivial vig. Them telling Ant they have no compute for them (rumored in Ant’s S-1) if true is a huge tell that this is already happening.
All of this is to say that it does look like there will be a lot of partially stranded compute and compute sitting in inventory in 2027 than is currently forecasted. This is bought and paid for but effectively underearning (below total cost of capital) or collecting dust. We see this as true for everyone - model companies, hyperscalers, neoclouds except ONE (you can guess which one).
This dislocation will benefit two kinds of orgs: the non-bureaucratic big scalers who can build industrial scale quickly and the nimble, well capitalized players feeding them.
2027 will be a turbulent year because it will clear out a bunch of wrong/bad bets. It will also be a consolidation year for a few.
A stock can pay me before I own it, while I own it, and when I’m ready to sell it.
You don’t need to be a pro trader to do this.
Before I own it: I offer to buy it at a lower price. Someone pays me upfront for that promise.
While I own it: if it pays a dividend, the company pays me just for holding.
When I’m ready to sell: I pick a price I would be happy to sell at. Someone pays me for the right to buy it there.
It all starts with picking a stock you would actually want to own.
I used to buy stocks and just wait for them to go up.
Then I learned my stocks could pay me while I wait.
Say you own 100 shares of a $50 stock.
You tell someone they can buy your shares for $55 anytime in the next month.
They pay you around $100 today for that.
If the stock stays under $55, you keep the $100 and your shares.
If it goes over, you sell at $55 and still keep the $100.
The catch is if it jumps to $70, you still have to sell at $55.
So only pick a price you would actually be happy selling at.
That’s a covered call.
The market is treating AI like the party is over.
$CRWV just got priced like it defaulted. It hasn’t missed a single payment.
Meanwhile, in the last 10 days:
Nvidia CEO: Neocloud demand is “off the charts.”
Amazon CEO: “Even spending $220 billion of capex this year, we’re leaving a meaningful amount of demand on the table.”
Elon: “We could rent out our compute several times over.”
Meta CEO: “Our investments are paying off.”
TSMC CEO: “We did not see any sign of slowdown.”
ASML CEO: Customers want to place orders for “2029 and even 2030.”
Lam Research CEO: Customer visibility “extending through 2028.”
Western Digital CEO: “There hasn’t been any diminishing in demand.”
They see the orders coming in. We see the headlines.
When people think of Reddit, they think of the place to find information.
When I think of $RDDT, I think of the stock that made me $5,985 this year.
Here is how I did it.
I sold puts on it every few weeks since April.
I never owned a single share.
Spoke too soon on $RDDT.
It looked like it would expire worthless, then it got challenged right at the end.
I closed it and gave back $260.
Still got to keep more than 70% of the premium.
Very important lesson here. You can get the direction wrong and still make money.
PMCC Update on $META
Closed the short call today. Bought it back for $2,254. Sold it for $6,422.
Kept $4,168. That’s 65% of the premium in 2 weeks on a 3 month trade.
Earnings were great but the stock still sold off. Took the gift.
Will sell new calls on this.
Running Total
- Short call #1: +$243
- Short call #2: +$245
- Short call #3: +$483
- Short call #4: -$5,526 (corrected from last update)
- Short call #5: +$4,168 (closed)
Total premium collected: -$387
Long Call:
- Cost: $20,035
- Current Market Price: $22,574
- Unrealized: +$2,539
Gave up premium on the short call side of things but I like the setup better.
Quick expiration Friday update.
$RDDT puts are on track to expire worthless. Premium kept.
$LRCX is a different story. The stock dropped hard after earnings and my puts are in the money.
I could roll them. I’m choosing to take the shares instead.
I like the company, and now I get to sell covered calls on it.
The sentiment in the market is still bad right now for some stocks.
I don’t try to guess when it turns. I just keep selling options and collecting premium.
Imagine the most popular lock in your city has a flaw.
With one simple trick, anyone can open it.
It’s on the back office of most stores in town. Where the money is kept.
These stores never close. People walk in and out all day and all night.
The lock maker is rushing out a fix. But changing every lock in the city will take a long time.
And now every thief knows the trick.
So what do you do? Close your store and lose business?
Or put someone at the entrance who knows the trick and watches for anyone trying it?
That’s what happened to the internet this week.
The broken lock was in PHP, the software behind most websites. The thieves learned the trick before the fix was ready.
And they came fast. Thousands of break-in attempts. Then hundreds of thousands in 2 hours. Then millions.
Websites using Cloudflare $NET already had someone at the entrance who knew the trick, about 10 hours before the fix came out.
The deputy head of security at Anthropic says it’s going to get a lot worse.
If the next 18 months look like this week, the company standing at the entrance $NET is worth a close look.
$LRCX just posted a 40% operating margin for the first time in its history. Revenue was up 54% from last year.
None of it matters today.
Oil is at $113 and the whole market is selling.
The CEO said customers can see their spending “extending through 2028.”
The stock is down almost 12%.
My $250 puts are deep in the money and the shares might get assigned today.
If they don’t, I’ll decide my next step tomorrow.
When you sell puts, you have to be ready to own the shares.
Long term I have no concerns about $LRCX .
This feels like fear, not fundamentals. I think Lam will be higher by next year.
$LRCX reports earnings tonight.
But $ASML and $TSM already gave us a preview last week.
ASML said it can’t make enough machines to meet customer demand in 2027 and 2028. It also expects sales to memory chipmakers to grow about 75% this year.
TSMC said its 2nm chip capacity will more than double in 2027.
To make all those chips, they need equipment from Lam Research.
Yet Lam’s stock has dropped recently and I think there is an opportunity there.
So I sold 4 $250 puts expiring Friday. The stock is around $264.
Premium collected: $1,136.
$LRCX reports earnings tonight.
But $ASML and $TSM already gave us a preview last week.
ASML said it can’t make enough machines to meet customer demand in 2027 and 2028. It also expects sales to memory chipmakers to grow about 75% this year.
TSMC said its 2nm chip capacity will more than double in 2027.
To make all those chips, they need equipment from Lam Research.
Yet Lam’s stock has dropped recently and I think there is an opportunity there.
So I sold 4 $250 puts expiring Friday. The stock is around $264.
Premium collected: $1,136.
Governments took their websites offline today.
Cloudflare customers were protected 9 hours before anyone knew there was a problem.
Even the free plan.
If $NET isn’t on your watchlist yet, today is a good reason to add it.
$CSU.TO pays me the smallest dividend in my portfolio. $5.60 every quarter.
It’s also my best performer this year. Up 20% YTD.
Friday my $IOT puts expired worthless. I kept $1,160.
Monday I sold new ones.
The strike is $1 lower this time, and they paid me $300 more.
$1,460 for agreeing to buy IOT at $37.50 by Oct 30. It’s at $39.55 right now.
This brings my total premium on $IOT to $7,340 since September.
If I get assigned on this one, I buy 2,000 shares at $37.50.
But after everything I’ve collected, my true cost basis is about $33.83. That’s around 14% below where it trades today.