Upgrading Your Options Machine
Happy New Year!
We are upgrading all the wealth engines I’ve shared with you.
We’re starting with Options. Then we are going to dive deeper into Dividends. Finally, we will upgrade the E-Commerce wealth engine using AI. All exclusively for our Paid Members.
Wealth is a war.
The Wheel Strategy is the infantry.
It is dependable. It is rugged. It occupies territory. If you followed the previous directive, you have deployed it. You are selling puts. You are taking assignment. You are selling calls. You are grinding out yield.
But there is a problem. Look at your deployment. Look at your reserves. The Wheel is capital intensive. It is heavy. It is slow.
To secure a single perimeter aka to sell one put on a high-value ticker, you must lock away thousands of dollars of cash. That cash is dead weight. It sits in your account, doing nothing, waiting for a breach that may never come. In the modern economy, stagnant capital is not safety. It is a liability.
While your cash sits in the trenches securing a tidy annualized return, the market is moving at light speed. You are winning the skirmish, but you are losing the war for Return on Equity (ROE).
You must become obsessed with return on equity, you must think about the velocity of your money and the risk of the return.
It is time to evolve. It is time to trade the heavy armor for precision ballistics. It is time to understand Leverage.
We are moving beyond simple ownership.
We are moving to Synthetic Dominance.
You have learned to hold the line. Now, we learn to strike.
The Architecture of Financial Violence
The market is a battlefield. Volatility is the terrain. Your capital is your ammunition.
The mistake most retail traders make is simple: They use too much powder for too little impact. They buy the stock. They pay full price for the asset. This is like building a fortress to protect a single gold coin.
The goal of Wealth Systems is not just “ownership.” Ownership is vanity. The goal is Control. You do not need to own the asset to extract value from it. You only need to control its movement for a specific duration.
We are going to dismantle your heavy fortifications. We are going to build a mobile, high-velocity strike force. We are going to discuss two weapon systems that maximize your Return on Equity:
The Credit Spread (The Shaped Charge)
The Poor Man’s Covered Call (The Synthetic Proxy)
Stop thinking about “investing” your money and start thinking about financial ballistics. That’s how you win the war for wealth.
The ROE Imperative
Why do we do this? Why leave the safety of the Wheel? Because of the Denominator.
Return on Investment (ROI) is the profit divided by the cost. In the Wheel, the cost is the full price of the stock. If a stock is $100, you lock up $10,000 to sell one contract. If you make $100 in premium, your return is 1%.
This is acceptable for preservation. It is unacceptable for acceleration.
We need to shrink the denominator. If we can control that same $100 profit potential, but only lock up $1,000 of capital, our return jumps from 1% to 10%. Same action. Same market movement.
10x the efficiency. 10x the firepower.
This is the power of the Credit Spread. This is how you weaponize your capital.
