All right, guys. AI stocks are coming

down, and I see a really big

opportunity. Today's video is going to

be on IREN stock and what I am

personally doing with a position that

I'm holding. And I also want to discuss

using the wheel strategy on IREN because

this stock has a lot of volatility, and

selling premiums has been a very

interesting opportunity that I've been

looking at that I'm implementing myself.

And right now, you're basically going to

get a better price because I have a 50

sell put on IREN, which I'm currently

running the wheel on, but I want to show

you a new position that I plan to open

up since IREN stock has essentially

crashed. Now, this is a really

high-quality company, and it has

essentially taken the elevator down or

the parachute down if you watched my

video yesterday. Went from $68 per share

down to $47. Now, as you can see, this

is a very violent and very volatile move

from IREN. IREN owns large amounts of

access to low-cost energy, and they're

essentially arbitraging. They're taking

low energy and then selling it for a

higher price. I really like this play

because they have a lot lower risk than

some of the other AI stocks. And seeing

the price under $50, I believe it's an

absolute steal because this company is

really good at arbitraging and finding

cheap energy. Well, specifically, power

is the bottleneck, and that's actually

why IREN is my favorite stock to be

invested in. So, let me show you kind of

step-by-step how I'm doing my wheel

strategy on IREN. Let me show you kind

of an interesting way to look at this.

So, first of all, stock under $50. I

have $50 sell puts. I'm down on the

position so far, but with the wheel

strategy, we are not concerned with

getting assigned, okay? Whenever we sell

a put option using the wheel strategy,

which is the first step, we don't mind

assignment in a majority of cases. In

this case, I actually am very happy to

own IREN. I want to show you kind of a

new position that I would open up today.

So, I'm going to go to trade options,

and I'm going to go to sell put option.

I'm going to also talk about the delta

that I'm choosing, and you'll see kind

of why I'm going for a higher delta. So,

look, check this out. IREN currently is

pretty low, and it's at the bottom of

its Bollinger Band. I really believe

we're at a support level right now,

either right at the support level, like

literally at $47. Now, when the market

opens up, the stock could go low, right?

I'm not a genie, I can't predict the

future. Maybe we go below the Bollinger

Band and also the RSI is 38. Potentially

we go to 30 RSI, right? So, maybe the

stock goes down to 45. But, the whole

point is that we're probably somewhere

near support levels, right? Whether it's

47 or 45 dollars. I actually think it's

even higher than that and we're like

below this is very unusual because you

can see a pretty hard bounce here from

like $47 here back in May 19th. So, it's

been about 6 weeks since May 19th as of

making this video basically in early

July, right? We're almost in July. We're

like at the end of June. So, what I see

happening is that the stock ran up.

There's a lot of investor enthusiasm

here and and lately the stock market has

been having a lot of volatility. Now, I

think the Iran situation is part of

that. I think also there's just

volatility in the market and people are

getting a little bit spooked. And of

course, when there's negative sentiment

in the market, everything gets sold off.

So, I don't think this is a justified

sell-off for Iran, which is why I want

to look at this sell put position. I'm

going to go for an expiration date

that's going to go out for August 21st.

This is like a 53-day option. Now, look,

you can go shorter term as well.

Whenever you're running the wheel

strategy, the whole point is you want to

create a system a process to basically

get in a stock by selling put options.

Eventually you will get assigned no

matter how low delta you go, you will

eventually get assigned. Once you are

assigned, essentially now you have

shares. Well, how do you generate income

from shares that you have in a stock?

Well, that's by selling covered calls,

right? Because you have shares, now you

sell a call option giving your rights

away to someone else call that stock

away from you if it breaches your strike

price, right? So, if I sell and I'll let

me just go step by step here. So, look,

I'm going to go to sell put option and

I'm going to go for a put option here

that's going to be at 47. So, the 47 put

option, man, that premium. That premium

is bicep or tricep, baby. I'm sorry if

I'm being cheesy, but I'm just trying to

have some fun with it. You guys in the

comment section, your biceps are small.

Hey, I'm I'm working on it. I'm working

on it. But, I'm trying to have some fun

here and make some money at the same

time. So, if you appreciate that, just,

you know, like the video. But, look, $47

strike price, the premium, oh my

goodness. This is an insane premium. If

we were to do this like, you know, 755

and the max loss here is 3900. Don't

look at the max loss as the max loss

because the max loss is referring to if

the stock goes down to zero, which I

mean, can IREN go down to zero? Sure,

very unlikely, but you see what I'm

saying? You don't want to really look at

it as the maximum loss, the worst-case

scenario. You want to look at what's

more likely to happen. Can IREN come

down? It can come down and you would get

assigned, but you're only really having

to put up 3945 in terms of cap, which is

pretty insane considering this is a $47

strike price. You're going from 47 all

the way down to under 40 in terms of

your average cost if you get assigned

because the premium is so

so bellissimo, right? If you've been to

Italy, it's like the Italian pizza, the

the buffalo cheese, right? Just the

extra margarita sauce. It's just I don't

know. This is like, why am I making a

video on IREN? Because I love the stock

for a couple of reasons. They're really

good at arbitraging low electricity cost

and selling it for high, that's in high

demand. And the stock is capitalizing on

one of the biggest bottlenecks in AI

right now. So look, if I expand this

option right here, right? Has a 40

delta. Now, the reason why I don't mind

going for a higher delta here is again,

I want to get assigned into IREN. That's

my goal because once infrastructure is

built out, higher utilization can

significantly improve profitability. And

that is what I think is the next step

for IREN right now. I think it's going

to become a much more profitable

company. So getting in at $47 per share

here is fine and has a high delta. Now,

that's why the premium is also higher.

Risk and return are kind of correlated,

guys, in basic finance 101 or economics

101. Risk and return go hand in hand,

right? If it's low risk, then it's

probably lower return. If it's higher

risk, then it's going to be higher

return, right? These two things

correlated, I mean, they go hand in

hand. Not one-to-one ratio, right?

Higher risk does not mean, you know,

three times higher risk does not mean

three times higher return, okay? What it

could mean is two times higher risk,

three times higher return. That is

possible, right? So I'm looking for

asymmetric upside given the level of

risk that I'm taking. So in terms of

position size that I would take on this,

I would simply go 5% of my portfolio.

That's pretty much what I feel very

comfortable with. So, look, if I sell

this 47 put option, that's the premium

I'm getting. That's step number one.

Now, step number two is essentially

you're waiting. If it's out of the

money, then you're fine. You don't do

anything, right? If the option expires

out of the money, so on August 21st, you

don't do anything, right? You don't

really need to manage this trade earlier

either because when I use the wheel

strategy, I'm not trying to actively

trade the wheel strategy. I'm using the

wheel strategy to more so go for more

passive income approach. So, I'm looking

at high-quality companies and those

high-quality companies like Iran it's

not a mega cap max seven stock. So, it's

a high-quality company that has higher

risk. This has high implied volatility.

You can actually see right here the

implied volatility is 117. So, if you're

like, "Hey Uncle Henry, I've been

looking to you know, I've been looking

to buy stuff over try stuff make some

gains." Well, high implied volatility

will do that. High implied volatility is

what helps you make more gains because

it has higher premium because it's

higher risk. Implied volatility is

essentially risk. That's all it is,

right? Implied volatility is how much a

stock is likely to move within the next

30 days based off of investors'

opinions, right? So, there's a bunch of

people in the market, market makers,

investors, hedge funds, algorithms, they

deem this risk to be about 117% over the

next 30 days. That's pretty much what

implied volatility stands for to make it

like a short and sweet answer. So, this

is like three times more risk than a

majority of stock. However, Iran has

been fairly stable. I get it the stock

is down a bunch, but if you actually

look here in this six-month chart, the

stock has gone from, you know, a little

bit sub 40 to $47. And at one point,

this stock was at, you know, 67 plus

dollars per share. So, I really like it

right now in terms of the valuation, the

fundamental valuation, and on a

technical basis, I like to see this

company that has fallen below the moving

average. The moving average here is

$54.80.

So, when I look at an opportunity, I

want to look for a cheaper opportunity,

right? I don't know if it's super cheap.

This is not the cheapest stock in the

world because it has a higher valuation.

This is not a Coca-Cola. So, after I

sell a put option, either it doesn't

happen, it expires out of the money, or

expires in the money and I get assigned,

then congratulations, I got assigned.

Great. So, then what I go ahead and do

is I just switch the table and I go to

sell call option. Now, the whole thing

with selling a call option, I like to go

for lower delta. The reason for a lower

delta though is because I want room for

upside, okay? So, let's say like right

now we got assigned on I rent. We have

100 shares, okay? Let's go into the you

know, third step of the wheel strategy.

We're thinking, should we sell calls or

should we wait? Um is this stock going

to recover? Well, the honest truth is it

can be very difficult to predict what

can happen with the stock, right? It's

very difficult to stock market can be

very random and I mean you've seen that

situation many times, right? I'm not

going to waste time on that. But, if the

stock is at the bottom of its Bollinger

Band, in this case, I would not sell

covered calls at all. I'm going to be

honest with you. I'm going to kind of

mess up this video, but I would not

fully run the wheel strategy right away

if the stock's at the bottom of its

Bollinger Band. As it comes up, I would

likely sell a lower delta, okay? So,

let's say that we got assigned, we wait

a little bit, we have a little bit of an

increase, then we go in for a sell call

option. So, we can go for a sell call

option here. It's a little bit difficult

because you can actually see the strike

here is 50 and then it skips to 55. I

ideally want something in between. I'm

going to show you kind of an interesting

way you can do that. Look, 50 gives you

some room for upside, but not too much

and 55, I would say that, you know, can

it go to 55? It can, but if you want

something in the middle ground, what you

can also do is let's say you have two

contracts, right? You have 200 shares of

I rent, right? You can also do two of

these. So, you can do one of this. Now,

this is really interesting cuz if you

think about it, if one is at 50 and

one's at 55, or the blended average

strike price is actually 52 and a half.

So, you could always like do this as a

strategy as well. Like something maybe

new that you haven't really learned yet

is if you have one strike price that's

50 and one strike that's, you know, 55,

it's basically just a mixed average

strike price of 52 and a half. So, you

can always kind of like mix up your

strike price by just having multiple

orders, multiple different contracts at

different strike prices. I actually

really like this not only for um you

know, different strike prices, but I

actually would do something like this.

So, look, I'm going to leave 50 on,

right? And then for 55, I can actually

go for a different expiration. So, I can

even go for like September 18th. So, if

you have 200 shares of IREN, right?

Let's say you get assigned 200. You can

even mix it up with the wheel strategy.

You can sell different strike prices

across different expiration dates. The

whole point that I'm trying to get

across here, so yeah, I can do 55. The

whole point that I'm trying to get

across here is the wheel is a really

good system and strategy to get into a

stock. You pick the price, you pick the

strike price, right? So, that is

essentially your price that you get in

at. Of course, you want to, you know,

take in the premium. So, the premium

that you get, you can just subtract that

off your, you know, strike price. So,

you know, like I just showed you, if we

sold a 47 put option we got over seven

bucks, then our effective average cost

is under 40, right? That's why I think

on IREN it just makes so much sense

because the implied volatility is high.

You can see here the implied volatility

is still like around 113, 114 for the 55

strike. So, essentially once I have sold

the covered call, again, I'm just

patiently waiting. I'm just patiently

waiting. I'm hands-off because I want

high returns. I love making, you know, a

bunch of money. That's one of my goals.

That's what I do for my community. I'm

always trading live. Like today, later

today, it's Monday. I'm going to be

trading live for my community. I'm going

to essentially make three to five trades

today. My community is going to be able

to see that, pretty much follow along,

and that's our goal. Our goal is to

place high-quality trades and be winning

on those trades. Now, when I look at

IREN, I'm pretty excited about opening

this position later today. So, I just

wanted to share this on YouTube.

Anyways, I don't want to make this video

too long. I didn't prepare for it or

really like script anything. I'm just

going just randomly off the top of my

head pretty much what my thoughts are

for one of the trades that I'm going to

make today. So, if you appreciate this

kind of analysis, you want to learn more

about the wheel strategy, want to see

the trades that I'm making, want to see

the stocks that I'm picking, then I

welcome you to check out more

information on my Discord community. You

can schedule a free call down in the

description. You can learn about what

I'm doing. But either way, I hope that

you found a lot of value in this video.

Actually, if you want to learn more

about the wheel strategy, I have a full

free course here on YouTube as well. So,

you check it out right here.