🔄 Make Your Own Machine Part 9: How to Roll a Covered Call (And Why You Might Want To)

Let’s be honest for a second.

You’ve probably been thinking:

“If this strategy really works… why don’t more people do it?”

That was my question too. And here’s the answer:

Because it’s slow, it’s boring, and it doesn’t make for exciting Instagram posts.

There’s no Lambos. No “look at my day trades” screenshots. No 10x meme gains.

Just $15 here, $20 there — every week. Quiet. Consistent. Repeatable.
But over time? It adds up. And that’s why the FIRE Engine works.

Now let’s unlock one of the most powerful tools in the strategy:

Rolling a covered call.

🔁 What Does It Mean to “Roll” a Covered Call?

Rolling is just changing your mind before the clock runs out.

It means:

Buying back the option you already sold (before it expires)
Selling a new one (usually with a later expiration or higher strike)

You’re extending or adjusting the trade. Not closing it. Not panicking. Just managing it like a pro.

🧠 Why Would You Roll?

1. To Avoid Getting Called Away

Stock is getting close to your strike?
You don’t want to lose your shares?

Roll it out to next week (or next month), and reset the strike price higher.

You keep your shares — and often get paid again to make the adjustment.

2. To Lock in More Premium

Sometimes the original option still has value, but now you see:

The stock’s calming down
The new week’s premium is juicy

So you buy back the old one and sell a fresh one right away — and make the difference.

Think of it like upgrading your deal mid-flight.

💸 Quick Example (Clean Numbers)

You sold a $9 call on RUM and got $15
Now RUM is trading at $8.90 — and you’re sweating
You don’t want to lose your shares

So you:

Buy back the $9 call for $5
Sell a new $9 call for next week — and collect $17

You just:

Avoided assignment
Kept your shares
Collected a net $12 more

Boom. Rolled and rewarded.

🧰 When Should You Roll?

Some simple guidelines:

Roll if the stock is creeping up on your strike and you don’t want to lose it
Roll if you can make more premium by resetting the timeline
Don’t roll if the stock is far below your strike — just let it expire and collect

🤔 But Isn’t This… Complicated?

Not really.

The platforms make it easy (Robinhood has a “Roll” button).
The hard part is patience — knowing when to let things ride, and when to adjust.

And that’s exactly why most people don’t do this:

It’s not thrilling
It requires watching the calendar
You don’t “win big” — you just win often

But if you’re okay with small, consistent wins stacking into something huge?
You’re already ahead of 90% of traders out there.

🧠 Bottom Line

Rolling a covered call is like hitting the “snooze” button on selling your shares — and getting paid for it.

You get to:

Avoid assignment
Earn more premium
Keep control of your engine

It’s a skill. And once you learn it, it becomes second nature.

👉 Up Next: [Post 10: How I Track My Trades and Calculate ROI (Without a Finance Degree)]
Want to see real examples of when I roll my calls? Check out the weekly FIRE Engine blog.