Gentleman Outlaw

📊 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.

đŸ„ƒ 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.