The Market Is A Casino… But We’re Not The Ones Gambling!

Added: 2026-05-30

[00:00:00]What's going on? Welcome to my channel.

[00:00:01]I'm the cover call guy and I'm getting straight into the video talking about the market as a conso and how that might be great for us income investors. Yes.

[00:00:11]Yes. Yes. The craziness in this market right now and the volatility and all the speculation, all the BS news and all what's going on and you know it might be true, might not be true. A lot of stuff is going on. However, when it's structurally uh when structured properly, right? Again, the income funds that we own, cover calls, put all these type of, you know, option in income uh premiums are designed to monetize us, right? Speculation, fear, greed, right?

[00:00:44]Created by the casino like behavior of modern retail market. So, it's good for us. Don't get frightened. Even if I'm on the sideline, and I say this a lot, I'm on the sideline. I'm holding cash just because I do think um a lot of things will eventually have to calm down and when it does I think right now I I am afforded that I am afforded that abil um that ability and opportunity to just sit on my hands. If you don't have that that opportunity I still think it's okay for you to nibble dollar cost average if you can and and and still you know get paid to wait. So, you don't have to hold entire cash like I am right now. I am holding about give or take about 40 $42,000 on sideline cash. But let's get it let's get it straight into it, right?

[00:01:32]Let's talk about this casino market and it's the gambler verse the house. Okay, so who's the gambler here, right? Again, the retailer buying the Okay, that's the key word here. Buying the options and placing the quote unquote the bet, right? the option calls or or the puts or the whatever, right? Hoping to hit that jackpot short-term stock movement.

[00:01:55]Now, who's the house? Premium sellers like me, the well, not me, but you know, if I were to do it, right, the covered call guy or funds like Neos who sell the bet to the gambler. Very important this uh distinction here. Okay, we want to be the house whether it's a casino market or not, right? We want to collect the cold hard cash. That's where we want to be here. All right. All right. Let's look at the casino floor. Right. It's very loud. It's very it's it's it's not it's not where we really want to be. Um especially we're trying to build our foundation when we aren't made. We haven't made it yet. Maybe when I reach my $120,000 goal, I might be able to have some money. But let's look at the ADV. That's the average daily volume.

[00:02:41]Now this is the number of contracts traded each day give or take is the estimate right. So with over 3 million zero daytime expiration which is zero day right options that is traded daily the market right now is is becoming a very massive betting machine. That's that's how I how I view it right again the more bets that's placed what does that mean? Well, this the more premiums for that house to collect whether I collect it or or I'm I'm buying Neos or whenever as an example, right, to collect that cash for me. That's where where we want to be. That's where we build our assets first and then when you want to have fun, go ahead and and and be the gambler with the extra cash. All right, let's look again. If you're new, volatility is the feel, not fear, right?

[00:03:34]We want it. That's where we want um volatility to be is uh not be but like understand that you know there's certain sweet spots for us, right? And it's 16 to 19. In my opinion, this is a sweet spot. Okay, high volatility means higher premium, right? But again the sweet spot lets the fund hits yield targets easily without taking more extreme panic level risk. when it goes much much higher.

[00:04:01]This is when you start seeing the market um not market panic, right? That's even though the the premiums should explo um theoretically explode here and this is where like you know type of co crashes um tariff crashes uh the 2008 type of level type of um you know volatility. Yes, the premium does go up but then again our nav does take a hit here. So, we want it to be like right here, right? Medium volatility that spikes up to where it's high but go back down, right? So, that's where we want to be. Uh, let's look at the options architect arms, right? So, what I mean by that? Well, that's just the just this is just the type of house that we're buying and what we're selling, right? Again, the tax efficient when you're using Neospite IQQI or you're the dynamic premium, right? uh GPIQ and GPI GPIX or you're the uncapped upside which the OVO style which I I like to start mentioning more in my videos. Again, I'm not sponsored by I just want to make this again. I should have made probably clear. I'm not sponsored by anyone, nor do I really care about getting any sponsors. I talk I I talk about everything unfiltered. Um I try to talk about the truth even my truth. I I want my truth to be the good and the bad. And this these are just the examples here of um each issuer kind of selling their um their marketing strategy to you. Again, you can buy all three. I intend to buy all three. All right, let's look at the golden window for income. All right, and I'm going to use Jeep an example because Jeep is at 44 billion assets under management. It is completely the titan of titans when it comes to derivative income. Right? If you look at the rest of the market, it's approximately 206 billion assets under management. Right?

[00:05:50]Again, I just want to put this out there because this is a golden window for um income. And what I mean by that because income investing is no longer a fringe dividend strategy, right? It used to be dividend strategy, organic payouts, and then have some option play. Now, I think it's it's coming almost head-to-head, one for one. It is now I want to say a major ETF category. If not, it will become a major ETF category within the next five years. I I I'm banking on this. I if I want to if I want to be the gambler right now and place my bets, I would I would say I think this is the new millennial and Gen Z way of investing. Okay. I don't think any of us here have that mindset of corporate loyalty, right? The pension is gone, so there is no loyalty there. All right, we're going to create our own pension. I made a video on that. I hope you guys watched it. Um, you know, as you notice, all my videos kind of linked together and what I kind of break it down into.

[00:06:51]So, hopefully you guys go ahead and catch my create your own pension video, right? So, again, income investing is pretty much the new way of creating your own pension, right? Um, there's there's two sides to this, right? The casino market creates demand from two sides, right? So, the speculators, right? one options and in and income investors one option premium. So we we pull on each other, right? We we collect the money but we also reinvested to create that speculation for the speculators. That that's the gambler in the house. We need each other. All right, let's look at the risk. Choosing bad products, right? And and I made a video previously from this um the last video. All right, volatility again isn't magic, isn't free money. It is an opportunity that is just us selling the options which mean taking specific risk meaning again we can get our uh call options being called away right news can have the options called away again that leads to the real trade-off here which is the capp upside path dependency and possible possible nav reversion okay this is where you have to look at yield isn't everything if you look at a 70% % yield and you're buying it only because of that you trapped yourself and that leads to the key question here is what risk is this fund selling to create the income. Please always ask yourself that.

[00:08:17]And when I buy something, I'm always talking about OVL, right? You should be asking, "Hey, why cover call guy? Why do you love OVL? What risk is this fund selling to create the income?" Right?

[00:08:29]You do these and you end up being the the gambler. If if um you don't follow these rules, right? You think it's free money. You don't think it's really, you know, bad tradeoff, right? You're looking at the yield. You don't ask these key uh key questions. and you will end up choosing the bad products. I'm warning you here and this this not FA but it's pretty close to it. I would say please keep these in mind when you are dissecting your new allocation or whatever you even have now. Um I I do it for all of my holdings. Um pretty much at the end of every month I look at it again. I look at how active management is is you know um selecting their calls and how they've been performing. Right.

[00:09:12]So, I I I look at this on a month-to-month ba basis. You don't have to do that. You could do it every two, three months, every quarter, but I like to look at it every month to month to see if it still fits my investment investment uh thesis, my investment strategy, and again, my life goals and what I'm trying to get out of this. All right, let's look at separating income from yield trap. Again, please total return first, right? High yield means nothing if the underlying assets loses more value than the income generated.

[00:09:42]Income quality second and these two come hand in hand. Please always ensure distributions are funded by option premiums and if dividends is possible not by destructive return of capital right headlining you should always be the last. I I think that's why a lot of people choose GPI um sorry a lot of people choose Spy I QQQY over the GPIX and GPIQ possibly with some tax efficiency right so again I do understand that the yield is greater there all right embrace the craziness that's what I'm trying to get out of this video is embrace it right it's good for our pockets it's making our wallets fatter right the market being a casino is is only bad if you are the one gambling If you own the right derivative income funds, right? If you've been listening to the to the cover call guy, if you've been watching all of his videos, the casino may be exactly where opportunity opportunity lives, right? There's always opportunities out there for us to grab.

[00:10:45]Now, you have to decide, is this the right one or is it the bad one? Am I going to get burned from this or I'm going to profit from this? So again, um if if you're new, please embrace the craziness, embrace the volatility, right? These premiums we collect and possibly hopefully because you selected a great issuer with a great active management team, right? None of their calls got called away. Um they understand their push strategy and how they're going to recover it over the long term. A lot of these factors in.

[00:11:19]So, you know, if you're you're on my channel, you're subscribed, you're watching my videos, you're you you're trying you're possibly getting on the same journey as me, right? Perhaps you're around the same age as me. I'm in my early 30s and I'm trying to retire before 35, maximum 40, right? So, my goal is 120 at the very least. I'm trying to push myself for 150 hopefully.

[00:11:41]Um, so again, you know, this these are the type of uh things that you have to factor in and and I I embrace the craziness of the of the stock market because I I know opportunities are everywhere, you know, even if uh I'm not buying anything right now. I I am getting I do have alerts, trigger trigger price alerts on the the ETF and stocks I do want. As I mentioned here, OVL is one of them. Um, and uh, yeah, again, I might buy before my trigger price um, gets set because something might have happened in my life and and I just need the money now, right? So, um, take everything I I I said and and what I'm doing with a grain of salt again.

[00:12:25]Um, who knows, the market might not ever come down to the price I want it at, right? So, hopefully you got something out of this video. you know, if you did, subscribe, comment, and like I like I always um appreciate you guys do supporting the channel. Um hopefully you guys are watching all the videos because I try to make it off the off the uh previous video and try to tie into what's new, what's going on, and um you know, it's it's it's storytelling, I guess. Anyways, uh before I start rambling on, thanks for watching. Stay tuned. And I'll catch you guys on the next