Latest / Felix Nikolas Prehn's Podcast / Felix Prehn - How to make $640 Every Month [The Wealth Hack No One Taught You] + Stock Market News 02 October 2025

Transcript

Felix Prehn - How to make $640 Every Month [The Wealth Hack No One Taught You] + Stock Market News 02 October 2025 · Felix Nikolas Prehn's Podcast

• 0:00
  SPEAKER_00: What if I told you that with just$1,000 you could start using the same wealth building strategy that Wall Street insiders have been using for decades?
• 0:08
  SPEAKER_00: While most people are stuck putting their money in savings accounts, getting only a few percent, like little Alberta here.
• 0:15
  SPEAKER_00: There is another way to make consistent monthly income, and it's called covered calls.
• 0:22
  SPEAKER_00: Now the problem is nobody teaches this in school.
• 0:25
  SPEAKER_00: Your financial advisor probably won't tell you about it.
• 0:28
  SPEAKER_00: And most people stumble through the stock market without ever discovering this powerful wealth hack.
• 0:34
  SPEAKER_00: Meanwhile, there are people out there who use this exact technique and they become financially independent.
• 0:39
  SPEAKER_00: So today I'm gonna break down exactly what covered calls are, how you can start as little as$1,000, and the step-by-step process to build that wealth.
• 0:50
  SPEAKER_00: I'm gonna also show you the tool that I use, that I actually built to find those as a bonus, so you know exactly where to start, how to find them, how to set it up.
• 1:01
  SPEAKER_00: And this is even if you've never touched an option before, even if you've never traded before, zero knowledge is required here.
• 1:09
  SPEAKER_00: That's my promise to you.
• 1:10
  SPEAKER_00: If you're wondering who the heck I am, my name is Felix Preen, and I used to be an investment bank.
• 1:15
  SPEAKER_00: I've seen how the big players really make money.
• 1:18
  SPEAKER_00: And after leaving banking, I founded the Goethe Academy, where we've now taught over 20,000 students.
• 1:24
  SPEAKER_00: I'm also the co-founder of Tradevision.lio, where we make it our mission to level the playing field for retail investors.
• 1:32
  SPEAKER_00: Because here's the thing the strategies that work for Wall Street can work for you too.
• 1:36
  SPEAKER_00: But somebody needs to translate them into plain English and show you how to start small.
• 1:42
  SPEAKER_00: That's the promise for this video.
• 1:43
  SPEAKER_00: And that's exactly what we're going to be doing here today with covered calls.
• 1:47
  SPEAKER_00: So let's dive in.
• 1:48
  SPEAKER_00: Now I just have the thought I want to do one better for you.
• 1:50
  SPEAKER_00: We're going to also add a workbook that walks you through the whole thing step by step, and you can download that for free at FelixFriends.org slash CC for covered call.
• 2:00
  SPEAKER_00: CC.
• 2:01
  SPEAKER_00: There's a link down below in the description.
• 2:03
  SPEAKER_00: So let me quickly run you through what this is actually all about.
• 2:06
  SPEAKER_00: What the heck is a covered call?
• 2:09
  SPEAKER_00: A covered call is like being the landlord, but instead of renting out property, you're renting out your stocks.
• 2:17
  SPEAKER_00: So imagine this for a moment.
• 2:19
  SPEAKER_00: Imagine you're own a piece of land, and that piece of land is worth$100,000.
• 2:25
  SPEAKER_00: Someone comes to you and says, I'll pay you.
• 2:28
  SPEAKER_00: So that's the value.
• 2:30
  SPEAKER_00: Someone comes to you and says, I'll pay you$10,000 for a right to buy it in six months.
• 2:41
  SPEAKER_00: So if I want to buy this land in six months for$100,000, I'm going to pay you this fee for it.
• 2:47
  SPEAKER_00: So this fee is something you're going to get even if they don't buy it.
• 2:53
  SPEAKER_00: In which case you keep get to keep the fee and also your land.
• 2:58
  SPEAKER_00: But that's exactly how covered courts work with stocks.
• 3:01
  SPEAKER_00: So how does this work here?
• 3:03
  SPEAKER_00: Let me know if this is landing for you, by the way.
• 3:05
  SPEAKER_00: Just put a put an L for landing in the chat down below and I'll see it.
• 3:08
  SPEAKER_00: You own a hundred shares of any kind of quality stock, and you sell somebody the right to buy those very shares at a higher price.
• 3:23
  SPEAKER_00: So you're making money on the sell, and you're making money on the right to sell it.
• 3:28
  SPEAKER_00: And for that right, they pay you a fee.
• 3:33
  SPEAKER_00: Options traders often call this a premium.
• 3:36
  SPEAKER_00: Now, I mentioned it was at a higher price.
• 3:39
  SPEAKER_00: If that stock does not reach the higher price, you keep your shares and you keep your fee.
• 3:46
  SPEAKER_00: Sounds pretty good, doesn't it?
• 3:48
  SPEAKER_00: So you're getting paid while you wait for your stocks to potentially go up.
• 3:52
  SPEAKER_00: It's like collecting rent on your portfolio.
• 3:55
  SPEAKER_00: Now, I would urge you to download the workbook again at felixfriends.org slash cc so you get the full value of this, because it might need to run this through a couple of times.
• 4:04
  SPEAKER_00: So why do most people not know this works?
• 4:07
  SPEAKER_00: Because they don't teach this in school, because the education system is designed to create employees, not investors.
• 4:14
  SPEAKER_00: And most financial advisors make money by keeping your money in mutual funds and they get ongoing management fees.
• 4:21
  SPEAKER_00: So there's zero incentive to teach you strategies that could make you independent.
• 4:26
  SPEAKER_00: Plus, options have been made to seem scary and complicated, but covered courts are actually one of the safest option strategies when done right.
• 4:36
  SPEAKER_00: But the truth is, Wall Street makes more money when you don't know these strategies.
• 4:40
  SPEAKER_00: So there's no motivation to educate the average person.
• 4:44
  SPEAKER_00: That's why I'm glad you found me.
• 4:46
  SPEAKER_00: So how do you start with a small amount of money?
• 4:48
  SPEAKER_00: So the first thing is you want to look for a quality company, not some crazy ass stock out there.
• 4:56
  SPEAKER_00: And you want to look for a stock that is trading below$50 per share.
• 5:03
  SPEAKER_00: There are plenty of those.
• 5:05
  SPEAKER_00: We'll look at a couple and how to find them just a second.
• 5:07
  SPEAKER_00: I'll literally walk you through step by step how I find them.
• 5:09
  SPEAKER_00: You could even do this with an ETF, by the way, if it's trading at a low enough value.
• 5:14
  SPEAKER_00: Now, a lot of people are saying to you you can make like 10% a month on this.
• 5:18
  SPEAKER_00: But if you're doing that, you're going to be taking some fairly significant risk with owning rubbish stocks, which you might not want to do.
• 5:25
  SPEAKER_00: So they might drop the stock, right?
• 5:26
  SPEAKER_00: So you don't want to do that.
• 5:27
  SPEAKER_00: Generally speaking, I would say you kind of want to aim for maybe 3%, not financial advice.
• 5:33
  SPEAKER_00: But I think that's probably a reasonable sweet spot.
• 5:35
  SPEAKER_00: So it's going to give you some pretty nice returns, extra cash.
• 5:38
  SPEAKER_00: You can still keep the stock, you can still make money in the stock, as long as it doesn't rally up too much too quickly.
• 5:44
  SPEAKER_00: But before you do any of this, please spend a couple of weeks learning this.
• 5:48
  SPEAKER_00: Use a paper trading account so you can do this.
• 5:53
  SPEAKER_00: But let me show you how to do this with your first stock.
• 5:56
  SPEAKER_00: So you need to find a stock that you can buy a hundred shares of.
• 6:00
  SPEAKER_00: So I've gone here to tradevision.io and I'm going to click on the tab that we call the screener.
• 6:06
  SPEAKER_00: And this whole thing was built for exactly this, by the way.
• 6:09
  SPEAKER_00: This is where it gets a little bit technical.
• 6:11
  SPEAKER_00: There are two things you want to filter by.
• 6:14
  SPEAKER_00: The first is there is a number that tells you how much you're going to get paid if you do this with a stock.
• 6:22
  SPEAKER_00: And that number is called options IV%.
• 6:26
  SPEAKER_00: You are not going to find that in many places, but you find it inside trade machines.
• 6:30
  SPEAKER_00: It's a seven-day free trial.
• 6:31
  SPEAKER_00: Just play around with it.
• 6:32
  SPEAKER_00: If you don't like it, just cancel it.
• 6:33
  SPEAKER_00: You want that number to be as high as possible because that means the amount of money you're going to get is as high as possible.
• 6:40
  SPEAKER_00: That's the first thing.
• 6:41
  SPEAKER_00: You want to sort that by high to low.
• 6:44
  SPEAKER_00: So I've done that here already.
• 6:46
  SPEAKER_00: Now, you don't want to be in crazily risky stocks because the stock values a lot higher.
• 6:52
  SPEAKER_00: Well, you're going to get sold pretty quickly.
• 6:55
  SPEAKER_00: That might not be your goal.
• 6:56
  SPEAKER_00: It might also go down a lot, but you don't want that.
• 6:59
  SPEAKER_00: So there is another thing here which is called beta or beta if you're American.
• 7:05
  SPEAKER_00: And beta comes in, and I'm going to take a little screenshot of that for you here.
• 7:08
  SPEAKER_00: So you can you can take a note of it or just take a screenshot of it.
• 7:11
  SPEAKER_00: That'll be the simplest thing to do.
• 7:12
  SPEAKER_00: And I'm sorry, sometimes you have to learn like a word and what it means.
• 7:17
  SPEAKER_00: And this is one of those scenarios that could potentially make you a lot of money.
• 7:20
  SPEAKER_00: So there are crazy stocks and there are normal stocks.
• 7:28
  SPEAKER_00: If it's greater than one, that means crazy bunny boil up, stay away.
• 7:36
  SPEAKER_00: But anything between zero to one is basically behaving normally.
• 7:41
  SPEAKER_00: It means if the market goes up 1%, the stock does a similar amount, it doesn't move 10%.
• 7:46
  SPEAKER_00: So you kind of want to be in that zero to one range.
• 7:49
  SPEAKER_00: And then, as I said, you want stocks that are less than$50.
• 7:53
  SPEAKER_00: That's your third step.
• 7:55
  SPEAKER_00: So you can filter this here and say, I want stocks that are less and equal to$50 because otherwise you need a lot of money because you need to buy 100 shares, remember?
• 8:04
  SPEAKER_00: So you want something that's kind of that sweet spot here.
• 8:06
  SPEAKER_00: And one that looks quite nice, for example, is Comcast.
• 8:11
  SPEAKER_00: Ticker symbol CMCSA costs$31.
• 8:15
  SPEAKER_00: So I need$3,100 to do this trade.
• 8:17
  SPEAKER_00: You could also do with something cheaper like Snap, that would just be$8.
• 8:21
  SPEAKER_00: So then you only need$800, but the maths will work exactly the same.
• 8:26
  SPEAKER_00: So let's look at Comcast.
• 8:28
  SPEAKER_00: So I'm going to open that stock.
• 8:29
  SPEAKER_00: And then here on the right, I'm going to click on the thing that says options.
• 8:33
  SPEAKER_00: That's a seriously falling knife.
• 8:35
  SPEAKER_00: So maybe we don't want to look at that.
• 8:38
  SPEAKER_00: Let me find something that looks a little bit less miserable.
• 8:41
  SPEAKER_00: Oxy would work.
• 8:43
  SPEAKER_00: That's an oil stock.
• 8:44
  SPEAKER_00: That's looking a little bit better.
• 8:46
  SPEAKER_00: So it's not like a completely falling knife.
• 8:47
  SPEAKER_00: It's actually recovering quite nicely, which is exactly what we want.
• 8:51
  SPEAKER_00: You don't want to put your money into losers.
• 8:53
  SPEAKER_00: You actually want to buy stocks that might actually be a good buy.
• 8:56
  SPEAKER_00: This is one of Uncle Warren Buffett's favorite right now.
• 8:59
  SPEAKER_00: So you're looking at that here.
• 9:00
  SPEAKER_00: But really what you want to look at, and I'm going to take away all the other lines because they don't matter, is up here, you can select covered core.
• 9:09
  SPEAKER_00: Now that now says to you at the top here, you are long, so you own 100 shares at$48, which is what it's trading at right now,$48.
• 9:20
  SPEAKER_00: And then you're going to do some options thingy.
• 9:22
  SPEAKER_00: We're going to go out about a month.
• 9:26
  SPEAKER_00: You could go a little bit more, but we're just going to keep it really simple and do a month.
• 9:30
  SPEAKER_00: And we're basically saying we're going to go just a little bit above the market.
• 9:34
  SPEAKER_00: So we're basically saying, look, we're going to buy the oxy here at$48, and we're going to potentially sell it at$50.
• 9:41
  SPEAKER_00: That's basically what we're saying.
• 9:42
  SPEAKER_00: We're selling these calls at$50.
• 9:45
  SPEAKER_00: And then does all the maths for you.
• 9:47
  SPEAKER_00: It says to you that your max profit is 6% or$268.
• 9:54
  SPEAKER_00: Now that's pretty good.
• 9:55
  SPEAKER_00: So you're getting$68, which means essentially you're getting a free share and a half.
• 10:01
  SPEAKER_00: Right?
• 10:02
  SPEAKER_00: That's sort of so how's that calculated?
• 10:04
  SPEAKER_00: Well, you get$68 for the right to buy.
• 10:08
  SPEAKER_00: That's the fee.
• 10:10
  SPEAKER_00: And then if the stock goes up$2, you're going to make$2 on your 100 shares, which is your$200 gain.
• 10:19
  SPEAKER_00: So that's basically a return.
• 10:21
  SPEAKER_00: So in reality, the actual covered call makes you about a percent and a half.
• 10:26
  SPEAKER_00: So this is a very conservative example with Oxy, but still an extra percent and a half every 26 days is actually not too shabby.
• 10:35
  SPEAKER_00: If you put that into a calculator, 365 days a year.
• 10:40
  SPEAKER_00: So this could you do this 14 times a year.
• 10:42
  SPEAKER_00: So 14 times, say 1.5%, still making 20% extra without any real risk.
• 10:49
  SPEAKER_00: So it's a pretty good setup.
• 10:51
  SPEAKER_00: Now, could you do this on something ups a bit more um you know snappy?
• 10:55
  SPEAKER_00: Yeah, look at Dow here at the top.
• 10:56
  SPEAKER_00: That's probably gonna pay us the most.
• 10:58
  SPEAKER_00: So let's have a look at Dow and see how much money we could we make there.
• 11:02
  SPEAKER_00: So again, we're gonna select the covered call here.
• 11:05
  SPEAKER_00: Let's just go out the same 26 days, and you can see straight away that's gonna give you a premium of$142, which is the equivalent of about six shares at the current share price.
• 11:18
  SPEAKER_00: So this gives you quite a lot more.
• 11:21
  SPEAKER_00: It's like 6% right there at the outset.
• 11:24
  SPEAKER_00: If you moved it a little higher, your credit would get a little bit lower.
• 11:26
  SPEAKER_00: If you move it lower, your credit gets a little bit higher.
• 11:29
  SPEAKER_00: So you can kind of see that this will do the calculation for you.
• 11:32
  SPEAKER_00: It'll show you exactly what you're doing, and it's pretty easy to kind of set up.
• 11:37
  SPEAKER_00: I would still strongly recommend you learn and practice this in paper trading because you're gonna have questions you don't even know you have yet.
• 11:47
  SPEAKER_00: And the easiest way to do that is a paper trading account.
• 11:50
  SPEAKER_00: Now, the one that I use is called Think or Swim.
• 11:53
  SPEAKER_00: It's free, it's done by Schwarp.
• 11:56
  SPEAKER_00: You can actually get access to the free account anywhere in the world, and then you can learn how to actually do this and how to break this down.
• 12:03
  SPEAKER_00: And it's a very, very powerful tool.
• 12:05
  SPEAKER_00: Now, the way I think about this is essentially what was it originally designed for?
• 12:12
  SPEAKER_00: It is to exit a position.
• 12:15
  SPEAKER_00: And I often have students who come to me with real duds in their portfolios.
• 12:19
  SPEAKER_00: So say you have a stock that, you know, did this and now it's collapsed and you're still holding on to it down here, and you kind of want to sell it, but it might just be better to sell it at a little bit of a higher point.
• 12:33
  SPEAKER_00: So, what can we then do is we simply set up a covered call at the higher price point.
• 12:38
  SPEAKER_00: We collect a little bit of premium, so the money is actually generating something, and then when it goes higher up, you get the benefit of the higher price plus the rent that you're essentially collecting.
• 12:51
  SPEAKER_00: Now, let me give you a few more tips.
• 12:53
  SPEAKER_00: Generally speaking, you want these to be sort of 35 to 45 days.
• 12:57
  SPEAKER_00: I know some people who do these weekly against, for example, their SP position, you know, say they have SPY or something like that in their portfolio.
• 13:06
  SPEAKER_00: And what happens, there are basically two outcomes to this.
• 13:10
  SPEAKER_00: So, really important to understand this.
• 13:12
  SPEAKER_00: So, let me just call it clarify this for you.
• 13:14
  SPEAKER_00: So, you're basically giving somebody a right to buy your hundred stocks, it's always a multiple of a hundred at a higher price.
• 13:28
  SPEAKER_00: So, what happens is well, one the price is below that higher price.
• 13:34
  SPEAKER_00: So, what happens then?
• 13:36
  SPEAKER_00: Nothing.
• 13:38
  SPEAKER_00: You get to keep the fee, the premium, you keep the fee, and you keep the stock.
• 13:47
  SPEAKER_00: So you're pretty happy, right?
• 13:49
  SPEAKER_00: Stock didn't perform that well, at least they collected some rent.
• 13:52
  SPEAKER_00: Now the second outcome is if the price is above the covered core price, then you will sell at the higher price.
• 14:05
  SPEAKER_00: So, what does that mean?
• 14:06
  SPEAKER_00: Well, you keep the rent, so you keep the fees, and you sell a hundred shares and you make money on that too, because you sold at a higher price.
• 14:17
  SPEAKER_00: So, what's the only risk?
• 14:19
  SPEAKER_00: Well, the only risk is that say, you know, you do this on Dow and your exit point would be, well, let's just move it up a little bit, say at$25.
• 14:30
  SPEAKER_00: So that would be your price, you exit.
• 14:32
  SPEAKER_00: Well, what if the stock goes suddenly up to 30?
• 14:37
  SPEAKER_00: So your theoretical opportunity loss would be then the gap between where you sold the 25 and the now.
• 14:46
  SPEAKER_00: So there is like a potential that if you own a stock which is going to massively rally, you're going to miss out on some upside.
• 14:53
  SPEAKER_00: But either way, you're still winning.
• 14:54
  SPEAKER_00: The stock went up, you made money, you kept the premium, you're still winning.
• 14:57
  SPEAKER_00: So it's a nice way to particularly work with stocks that are not really going anywhere.
• 15:03
  SPEAKER_00: So, say something like Dow or something like Oxy, which quite frankly is underperformed the market for a long time, but you might still think it's a strong sound company because Warren Buffett's buying it.
• 15:14
  SPEAKER_00: So rather than just making nothing on your money, you could still collect some extra percentage points.
• 15:19
  SPEAKER_00: And we all know the little extra percentage points can compound into some true, true wealth.
• 15:24
  SPEAKER_00: So, what I'd like for you to do is go to tradevision.io, get yourself a free trial.
• 15:29
  SPEAKER_00: There's a whole seven days for you play around with it and just play around with these.
• 15:32
  SPEAKER_00: Start to understand this better.
• 15:33
  SPEAKER_00: Start to understand the money you're getting, the profit you can make, and then go and open a paper trading account if you haven't got one already and play around with this.
• 15:43
  SPEAKER_00: You've got some value out of this, you've got some questions, put them down below in the comments.
• 15:46
  SPEAKER_00: I'll read every single one and I wish you tremendous success.