Back on April 17, I shared a FREE trade idea in my Telegram channel. (click here to join FREE if you’re not already there)
It was a covered call on SCHW.
Here’s the original trade idea from April 17th:
What I want you to do is look at this chart of SCHW showing how the stock performed between February and now.

First things first, as I always say, the strong trend is like a moving train.
That’s why we jumped on this as a trade opportunity.
And for the next 35 days, that trend just kept on going like a powerful freight train.
Once the stock passed 76, anyone who traded this could have been called out.
And that would have been great, because selling at 76 when your cost basis is 71.7, means your profit was about 6% in a month.
For anyone who wasn’t called out, the story continued:
On May 22nd, SCHW started taking a nose dive, ultimately dropping 10 points from a high of 79 to a low of 69.
For a brief time, anyone who still held the stock took a slight loss on paper.
But that quickly turned around as the stock started heading back up.
By expiration — May 31 — the stock closed at 73.32.
That means the call we sold was out of the money, expiring worthless for the person who bought it.
That let us keep the full premium we collected for selling the covered call — AND also keep the stock.
Meaning that the following Monday, June 3rd, we could sell another covered call and continue to lower our cost basis.
In my FREE Telegram channel, I’ve just issued another trade idea for a covered call that we collected $1.20 for, bringing our cost basis to 70.50.
As I write this, SCHW is trading at 72.44.
That means we’re “in the green” by 1.94.
My Big Point
Here’s why I wrote this article… I want you think about what would have happened if we had simply bought SCHW and never sold the covered calls.
We would have bought at 73 about 6 weeks ago. And right now we’d be under water…
Praying for it to go up another 50¢ just so we could barely get back to breakeven.
THAT is the power of covered calls.
And THAT is the point I want to drive home.
Covered calls give you a kind of “insurance” that you’re missing out on if you just buy and hold stocks.
Sure, on occasion you’ll get called away.
But you always get to choose that price ahead of time — meaning that you always get to pick the profit you want to make on something before you ever make the trade.
That’s powerful stuff. And it makes the journey of owning a stock that much smoother.
Now Let’s Use A Powerhouse Stock
Want to know what makes this strategy even better?
How about harnessing the power of a red hot stock like NVDA?
Combine the power of a red hot stock with the fact that NVDA just announced a 10-for-1 stock split.
I’ve been in the market for decades and I can’t remember an opportunity this good in a LONG time.
If you ask me, a lot of “dumb money” is about to start buying NVDA options.
And that makes a HUGE opportunity for you and me. Click here to register for my upcoming NVDA Stock Split Summit and find out what I’m talking about.
Trade well,
Jack Carter