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?
Share Count
Calls You Can Sell
Est. Weekly Premium
100
1
$15
200
2
$30
300
3
$45
400
4
$60
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.
It’s been a full week in the RUMble Engine, and while the stock price took a dip, my confidence didn’t move an inch.
Let’s break it down.
📉 RUM Dropped This Week — Good.
RUM started the week up around $8.92, and slowly dropped throughout, closing Friday at around $8.60.
Most people would see red and freak out. I saw green — opportunity green — and bought 5 more shares at $8.61, bringing my total to 239.393038 shares.
I didn’t do anything fancy. I didn’t overthink it. The price dipped, so I bought more. That’s the whole play.
💸 I Still Have Two Covered Calls Working
Here’s what’s still running on my board:
1x $9 Call expiring July 18th — this one’s paying me while Theta eats it alive
1x $8 Call expiring October 17th — a longer-term income builder
Both were sold earlier for upfront premium. And even with the price drop this week, they’re doing exactly what I want them to do.
🧠 Let Me Explain Why I’m Not Worried
People ask, “Aren’t you losing money if the stock drops?”
Nope. Because I don’t just own the stock — I run a machine that gets paid whether the price goes up, down, or sideways.
And the real reason I’m able to stay calm is thanks to one of the Greeks — Theta.
🧪 Quick Greek Lesson (Keep This Simple)
Options contracts are affected by things called “The Greeks.” Here’s the only one you need to care about this week:
Theta = Time Decay
Every day that passes, my open call contracts lose value simply because time is ticking. I already got paid when I sold them — so that decay is profit for me.
This week:
My $9 call dropped from $0.85 to $0.68
I’m over 60% profitable on it now — even though the stock dropped!
That’s Theta. That’s the machine.
📊 Weekly Recap
📉 RUM dropped from $8.92 → $8.60
🛒 I bought more shares at $8.61
📈 Share total: 239.393038
🧾 Options active: $9 (Jul 18), $8 (Oct 17)
💸 Premiums already collected: $365
📉 Current cost basis (adjusted): ~$6.34/share
🔋 Cash on hand: $0 — I deploy everything into share growth
🧠 Emotional reaction: None
🔮 What’s Next?
I’m watching that $9 call — if it dips near $0.30, I may close it early and reload for more premium.
The $8 October call stays untouched for now — it’s got plenty of time left to burn down.
I’ll keep adding shares on red days and selling calls on green ones.
And I’ll keep letting Theta do the heavy lifting behind the scenes.
🏁 Final Word:
I’m not trading. I’m operating.
The RUMble machine doesn’t care about short-term dips. It cares about premium, patience, and stacking shares until this machine pays me $1,000 a week.
And this week? ✅ Bought low ✅ Collected Theta ✅ Let it ride
Stick around. I’ll post the next checkpoint after the weekend. The snowball’s rolling, and it’s just getting started.
🎁 Wanna Start Building Your Own RUMble Machine?
Grow wealth. Stack shares. Collect premium. And hey — grab some FREE STOCKS and FREE MONEY while you’re at it.
I use Robinhood to run this machine, and if you’re curious or ready to build your own:
🧯 Make Your Own Machine Part 6: What Happens If My Shares Get Called Away?
So you’ve sold your first covered call. You collected a nice premium. Life is good.
But then — boom 💥 — the stock price jumps and you see a notification:
“Your option was exercised.”
Cue the panic: “Wait, did I just lose my shares?!”
Yep… but hold up. That’s not a bad thing.
🧠 What Does It Actually Mean to Get “Called Away”?
When you sell a covered call, you’re making a deal:
“If this stock hits $X by Friday, I’ll sell it to you at that price.”
If the stock stays below that price? Nothing happens. You keep your shares and the premium.
If the stock goes above that price? The buyer can exercise the option. That means:
You sell your shares at the agreed price (called the strike)
You still keep the premium you got up front
This is called having your shares called away — and it’s part of the game.
💰 Clean Example
Let’s say:
You own 100 shares of RUM at $7.50
You sell a $9 call and collect $15
RUM closes at $9.20 by expiration
Here’s what happens:
Your shares are sold at $9 = $1.50 profit per share = $150
You keep the $15 premium
Total profit: $165 (22% gain on a $750 investment — in one week.)
😬 But What If I Didn’t Want to Sell?
Totally fair.
If you’re trying to build a long-term position — say, stacking up to 200+ shares like I am — you might prefer to keepyour shares.
So here’s the good news:
🔄 You Can Avoid Assignment (Sometimes)
If it looks like the stock is going to hit your strike price, you don’t have to just sit there and let it happen.
You can roll the call — which means:
Buying it back early
Selling a new one at a later date or higher strike
That’s called rolling a covered call.
We’ll go deeper into how to do that in a future post — for now, just know:
You’re not locked in
You can adjust your position if you want to hold your shares
🔁 What I Do When It Happens
If I get assigned (shares called away), here’s my move:
Celebrate the win — I made premium and capital gains.
Watch for a dip — and buy back in when the price is right.
Keep the engine running — sell a new call once I’m back in.
No panic. No drama. Just rinse and repeat.
This strategy works because you’re not chasing the market — you’re managing it.
🧠 Bottom Line
Getting called away isn’t a loss — it’s part of the plan. You either keep your shares and your premium, or you sell your shares and still get paid.
And if you want to avoid it next time? Rolling gives you options — literally.
We’ll cover that soon.
👉 Up Next: [Post 7: Why I Chose RUM (And What to Look for If You Pick Your Own)] Want to see how I handle real trades like this?Check out the FIRE Engine blog.
💸 Make Your Own Machine Part 5: How Covered Calls Actually Make You Money (with Real Numbers)
Now that you know what a covered call is (aka renting out your stock like a boss), it’s time to break down what this looks like in real life — and more importantly…
How much money are we actually talking about here?
Spoiler: It’s not thousands overnight. But it’s steady. Predictable. And it snowballs.
Let me show you exactly how.
🔢 Real Example: 100 Shares of RUM
Let’s say you own 100 shares of RUM (Rumble).
You bought them at $7.50 each
Total cost: $750
Now RUM is trading around $7.80, and you want to sell a covered call.
Here’s what you do:
You sell 1 call option (each call covers 100 shares)
You choose a strike price of $9, expiring next Friday
The option buyer pays you $15 upfront
That $15 is your premium — and it’s yours to keep no matter what happens.
📈 Scenario A: RUM Stays Below $9
Let’s say RUM ends the week at $8.45.
Your option expires worthless.
You keep your 100 shares
You keep the $15 premium
You made $15 in 7 days — just for owning the stock.
That’s a 2% return on your $750… in a week. Stack that over 52 weeks and you start seeing how this adds up.
💰 Scenario B: RUM Goes Above $9
Let’s say RUM shoots up to $9.50.
Your shares get called away (someone buys them from you at $9)
You make $1.50 per share in capital gains ($9 – $7.50 = $1.50)
You also keep the $15 premium
Total profit:
Capital gains = $150
Premium = $15
Total = $165
Not bad for a week, right?
🧠 Either Way: You Win
Outcome
Keep Shares?
Profit
RUM stays < $9
✅ Yes
$15
RUM goes > $9
❌ No
$165
This is why I love this strategy. You’re not trying to guess the market. You’re getting paid to wait. If the stock runs? You still win.
🪜 Stack and Snowball
Here’s where it gets fun:
Take that $15
Reinvest it over and over
Every time you hit 100 shares, you unlock another covered call
Eventually, instead of 1 contract a week, you’re selling 2… then 3… then 5.
And that, my friend, is the FIRE Engine.
🧠 Bottom Line
Covered calls make you money whether your stock goes up, down, or sideways — as long as you stick to the plan.
Next time, we’ll talk about what happens if your shares get called away… and why it’s not the end of the world (in fact, sometimes it’s exactly what you want).