🔄 Make Your Own Machine 8: How to Reinvest Premiums to Grow Your Share Count

by Ryan Rush | Jun 25, 2025 | FIRE Engine

🔄 Make Your Own Machine 8: How to Reinvest Premiums to Grow Your Share Count

Alright — by now you’ve:

• Bought a stock
• Sold a covered call
• Collected your first premium (🎉)
• Maybe even had shares called away and lived to tell the tale

Now it’s time to unlock the power move of this whole FIRE Engine strategy:

Use the premium to buy more shares… so you can sell even more calls… and make even more premium.

This is how you go from making $15 a week to $150+ a week — without ever adding more of your own money.

🔁 The FIRE Engine Loop

Let’s simplify this with a visual loop:

Buy 100 shares → Sell a call → Collect premium → Reinvest → Repeat

Every time you complete the loop, your income potential goes up.

Let’s break it down with clean numbers.

💵 Example: Starting With 100 Shares of RUM

• You own 100 shares of RUM at $7.50 = $750 investment
• You sell 1 covered call and earn $15 per week
• That’s $60/month

After about 12–13 weeks, guess what?

You’ve earned enough to buy 10 more shares.

Fast-forward a few months and boom — you’ve stacked up to 200 shares

Now you can sell 2 calls per week instead of 1.

$15 x 2 = $30/week → $120/month
Wait a few more months? Now you’re at 300 shares.

This is how the engine builds steam.

📈 Reinvestment = Snowball

Let’s say you’re consistent — you sell calls every week and never withdraw the premiums.

What happens?

Within a year, you can go from $15/week to $60/week or more, just by recycling premium.

And you never had to put in more capital after the first $750–$1,000.

🪙 “But What If I Only Earn $10 a Week?”

Even $10 a week is $520/year — that’s 70 more shares of a $7.50 stock. That’s almost enough to add another contract just from reinvestment.

Remember: the FIRE Engine isn’t about flashy, overnight results. It’s about consistent, compounding income.

And once your share count grows, it feeds itself.

🧠 Bottom Line

Don’t spend your premium — stack it.
Every dollar you reinvest is another step toward your next contract.
Every contract is another stream of weekly income.

This is how your engine turns into a machine.

👉 Up Next: [Post 9: How to Roll a Covered Call (And Why You Might Want To)]
Want to see how my own share count is growing? Check out the FIRE Engine blog.

📊 Make Your Own Machine Part 7: Why I Chose RUM (And What to Look for If You Pick Your Own)

by Ryan Rush | Jun 23, 2025 | FIRE Engine

📊 Make Your Own Machine Part 7: Why I Chose RUM (And What to Look for If You Pick Your Own)

You’ve learned how to buy a stock. You’ve seen how covered calls generate cash. You even know what happens if your shares get called away.

Now the big question is:

“Why RUM? And how do I know what stock to use if I want to do this myself?”

Let’s break it down.

🥃 Why I Use RUM (Rumble Inc.)

I didn’t just throw darts at a list of stocks and land on RUM. I picked it on purpose. Here’s why:

1. It’s Affordable

• RUM usually trades between $7–$10
• That means 100 shares = $700–$1,000 — super approachable for beginners
• You don’t need $10,000 to get started

2. It Pays Great Premiums

• RUM has decent implied volatility, which means the options are worth more
• Even when the stock doesn’t move much, I can pull in $10–$20 per week per contract
• That’s a solid return — especially when you’re stacking more shares over time

3. It Moves… But Not Too Wildly

• It’s not boring, but it’s not GameStop-level chaos either
• I like stocks that bounce within a range — they give me premium, but don’t usually fly past my strike price
• It’s perfect for weekly or biweekly covered calls

4. I Actually Believe in the Company

• Rumble is building an alternative to Big Tech platforms, with a focus on free speech and decentralization
• I like what they stand for — and if I’m going to build income from a stock, I’d rather it be something I support

🔎 What to Look for If You Pick Your Own Stock

If you want to try this strategy on something else, here’s what you should look for:

✅ Low Share Price (Under $20 is Ideal)

• The lower the share price, the easier it is to get 100 shares
• You can always scale into more expensive stocks later, but start small

✅ Options Available

• Not all stocks have options — make sure yours does
• Look for “options” or “trade options” in your brokerage when you pull up the stock

✅ Decent Premiums

• A good rule of thumb? Try to get $10+ per week for a $1,000 position
• If the premium is only $1 or $2, it’s probably not worth it

✅ Steady Movement

• You don’t want a flatline stock with zero action
• But you also don’t want a rocket ship that’ll blow past your strike price every time
• Look for stocks that tend to trade in a range — they’re perfect for covered calls

✅ A Company You Don’t Hate

• If you wouldn’t feel good owning the stock long-term, don’t do it
• You might have to hold it for a while if it drops — make sure it’s something you don’t mind hanging onto

🧠 Bonus Tip: Check the Options Chain

Before you commit to a stock, look at the options chain (your brokerage will show it under “Trade Options”).

Ask:

• Are there weekly options?
• Are the premiums at least $10–$20 for 100 shares?
• Are the strike prices spaced reasonably?

If so, you’ve found a candidate.

🧠 Bottom Line

I picked RUM because it’s cheap, has great premiums, steady movement, and I actually like the company.

If you want to use something else — no problem. Just make sure it checks those boxes.

In the next post, we’ll talk about how to grow this into a snowball — reinvesting premiums to build more income over time.

That’s when this goes from fun… to powerful.

👉 Up Next: [Post 8: How to Reinvest Premiums to Grow Your Share Count]
Want to see my real trades with RUM? Check out the FIRE Engine blog.