Chaos Is Coming — Here’s How to Profit From It 🚀

Hello everybody. Happy Sunday. Today we're going to talk about the chaos edge, and actually, it could also be the chaos hedge. So you can interpret this title both ways. We're going to talk about how best to play the chaos that's coming. And yes, chaos is coming. And yes, things are changing very quickly. And, uh, thank you everybody for coming. Shout out to Shaun D, Cyber Sniper, K8, and Ron B. I wonder, is that the Ron? Ron Jeremy? No, Ron B, the anchor man. Is it Ron? Something like that. Anyway, Doc Intern, thank you for coming too. Let's get into it. And, uh, not financial advice, just a guy on the internet. And all the questions come from Patreon. Shout out everybody on Patreon too.

First question is from Alpine Pickle. Hi James. I keep hearing that AI could possibly replace near half of the white-collar jobs by 2031. If that happens, lots of people with high-end white-collar jobs lose income, start skipping mortgage payments on their AAA loans, and those bonds blow up, pensions freak out, Fed prints like crazy. And with housing debt three times bigger than it was in 2008, could we actually hit a point where interest payments eat every dollar of tax revenue? Would really like your thoughts on this.

So, I like the way you're thinking. Uh, it's important to always refer back to history and then compare the historic situation with where we are today. So, let's jump into a little bit of history, also with a bit of a reality check as well. So if we look at what happened last time around, at the, the 2008 style crash, which a lot of people like myself have been through, lived through a number of crashes, and they tend to recur with a certain cadence. But a lot of doomers are screaming about, you know, $300 million global jobs impacted and half of white-collar jobs by 2031. And they do think, as you know, high earners will skip payments on, I think it's about $13.2 trillion in debt. But hold on, remember 2008, uh, was crazy where you had people working in nightclubs with five houses, all with nothing down and variable mortgages, and you can imagine what happened next. We've seen the movie. But, uh, that was, I think, 2008 was about 11 trillion in debt, mortgage debt. Now it's 13.17. Considering debasement, it's actually hasn't gone anywhere. So we're 23% bigger, not 3x like the headline says. Also, delinquencies are about 2.3 to 4% versus 11% in 2008. And 92% of loans are fixed rate, low coupons. And the average loan to value is 46%. This is a very, very different time than before. And remember, it isn't, uh, 2008, and there's a lot of very strict rules in place as well. So that's the big delta between where we are today and 2008 that triggered the global financial crisis.

Now, the other thing as well that needs to be considered is federal interest rates. Uh, federal interest on debt is 1.25 trillion. Yeah, it's a third of all income tax revenue right now, heading to 45% by 2036 per the CBO, something budget office. Anyway, total revenue 5 trillion, debt to GDP is 125% and climbing. And if AI unemployment spikes, tax revenues will take it in the shorts, and the Fed will step in to buy mortgage-backed securities, and the money printer goes absolutely into overdrive again. We've also seen this movie before. But remember AI, this is where it gets different this time. Very different. AI is massively deflationary. Okay? And that also drives productivity to the roof. So, for example, I talk a lot about, you know, there may be a lot more jobs because there's a lot more productivity. And because there's more productivity, there's more income to spread around. Yes, I know we hear the stories of companies getting rid of 40% of their staff, etc. But the new opportunity is for those who are entrepreneurial, those with ideas. Now, you can do anything you want, fulfill your wildest dreams, and that is a huge opportunity too. So the world is changing. We're moving to billion-dollar companies run by one person, etc.

Um, the other thing that's going to happen is the financial pivot, not just AI being deflationary and increasing productivity to the moon, but also the pivot. If we do have a situation with bleeding bonds that you refer to in your question there, there will be a move to scarcity. Think Bitcoin and Bitcoin ETFs. And this is the chaotic result that will bring hard assets parabolic. That's my theory. That's the black hole math, as you know. Now, this is why you need to own those two things. You need to own hardness, scarcity, whatever you want to call it, in the age of AI and disruption. And you need to own AI. And they are the two asymmetric shields that I see out there. So, buckle in, get ready for what's coming. Um, again, either way, if the Bitcoin, if the money printing goes into overdrive, we will get a huge cycle for Bitcoin, which is great. And we know productivity is going through the roof. We'll talk more about some of that AI stuff as well that's coming as well. Remember, this is the game we're playing two ways. One, invest in disruption for the exponential growth, and invest in hedges for when fiat goes to zero. That's Bitcoin. Let's get into the next question. Thank you for the, and this from Shanzi.

With Micro Strategy currently trading around 1 MNAV, do you think Micro Strategy has a realistic shot at reaching share price parity with Tesla again, or is that just wishful thinking at this point? I'm considering buying something like a 100 shares of Micro Strategy now at these lower levels as a leverage play on Bitcoin rebounding, then swapping into Tesla once Micro Strategy catches up or gets close to parity.

So, this was my game basically from 2020 and hard in the bare market of 2022. That was my whole thing was to go hard into this proxy and then rotate into AI, which was Tesla. We'll break it all down. Can we do it again? But first, I want to just give you, give us all the lay of the land. And people, people say, uh, I think it was a couple of weeks ago, somebody said, you don't talk about Micro Strategy anymore. I talk about it all the time. All the time. Anywho, Bitcoin holdings over time, they are going parabolic. This is extraordinary stacking here. We're nearly at 800,000, which means Sailor, I know he's looking at a million Bitcoin in this bag. And remember, there'll only be 15 million Bitcoin. So this is absolutely crazy. This has gone vertical. He is stacking hard in the bear, just like he did in 2024. Last time he went vertical like this. Before that, it was all gradual accumulation. Also, this is the current setup. This is probably the most important chart. Micro Strategy is trading, you could argue, at a fire sale net asset value. We did fall the lowest ever. We fell to, I think, was 0.79 MNAV, which means a 21% discount for their Bitcoin bag. Now, Micro Strategy is doing a couple of things that are a little bit different than, uh, in the past. Number one, they are doing, they have the preferreds and STRC, etc., for their iPhone moment. And in addition, they're actually paying down debt, which is good. So, at this level, could we see a 0.79 MNAV again? I don't think so. Again, they have 761,000 Bitcoin, $53 billion worth approximately, and the market cap is whatever. So, um, the question is, for this Micro Strategy stock to reach parity with Tesla, it needs to do a 2.7x move. Um, they do have that 11.5% STRC preferred printing machine, but, uh, will we get there? Let's have a look at a chart first. I do want to, uh, cover this as well. People somehow don't understand the game of what they're trying to do. And again, yes, what we need for this to happen, we need people to FOMO into Micro Strategy, get more because of the SAT accretion. And remember, the whole game that Micro Strategy and Sailor do is they use borrowed money to boost gains, and that beats all other popular stocks during a boom. If Bitcoin price is going up, Micro Strategy will outperform. That's how it works. And we've had two cycles of this so far. Will we get a third? We shall see.

Now, back to the pair trade window. And this was the big game. You'll see the little green box up there. That was the MSTR Tesla optimal pair trade box. We did 23 trades up here. Um, and it was basically when this is MSTR Tesla, where is it? Tesla MSTR? I cannot see. Let me zoom in. I can't remember. It's MSTR Tesla. So basically, when the chart is high, that means Tesla is, means Tesla is weak and Micro Strategy is strong, and vice versa. Right now, we are at the bottom of the range. And a couple of things you can see from this chart here, we're very far away from the, the actual swap rate is 0.32. And we spent ages swapping at 1.4, 1.5 Tesla shares for every Micro Strategy share. Now it's a fraction. It's completely been demolished. Is it going to turn around? Well, looking at this chart, you can see the orange thing happens in big phases. It's down only, for example, 2020 to late 2021 versus Tesla. And then we had down only again, July 2021 to about mid-2022. And since then, it's been up, a little bit of a down dip, and then all the way down from whenever that was, summer last year to today. Is it going to turn around? It looks like it. I bet you if we come back to this chart in a week or two, we'll see blue, and that means the trend is reversing. But the question is, how much would it need to get back to parity, which is the 1.00 on this chart? So one share of Tesla is the same price as one share of Micro Strategy. That's the question. I think we could get Micro Strategy to rip past $500. But for this to happen, we need a $200,000 Bitcoin. All right. People aren't going to be, you know, get as much FOMO unless, of course, the STRC thing really takes off and therefore the price of Bitcoin really takes off. We get a little bit of a supply crunch and Bitcoin shoots to $200K, then we get back to the parity and maybe a lot more. But I do believe Micro Strategy is at the bottom of the range, and they do believe the upside looks good, however. So, take that and do what you want with it, but that's the way I see it. Now, we'll answer another question on Micro Strategy in a little bit, too.

But this is an interesting question from EW. Hi, James. I'm so curious to hear your response to this, and I'm sure others are too. Self-driving cars are now firmly in the consciousness of the general public. Yet, nobody I personally know is aware that Tesla has anything to do with this, which makes sense because all of the marketing for such vehicles is from Waymo and other competitors, and virtually all of the vehicles operating are not Teslas. Anytime I see someone on social media posting about a ride they took in a self-driving cab, it's never a Tesla. I would have never heard of Tesla's robo taxi if not for watching this channel. Investor Answers. Uh, similarly, the general public is becoming more and more aware of humanoid robots. But again, regular people do not think of Tesla in relation to robots. One further example, lots of regular people use AI LLMs, but most of them do not even know that Grok exists. So if Tesla, Musk, it's industry leaders in all these fields, why is it that we see in the real world doesn't reflect that at all? And why should we continue to be confident about Tesla being the fastest horse? I know you have mountains of data to steal your case, but let me know what you think. Thank you, EW.

Great question. First of all, uh, the normies are clueless. And, you know, getting into debates with people online and Twitter can be quite hilarious. They say, "Oh, Waymo's dominating," but they don't watch the, uh, Waymo's going the wrong way down a railroad track or whatever. And then they say, "Oh, Boston Dynamics is the leader in robots." But you're 100% right. Waymo is running real paid rides in 10 cities. And social media is flooded with the, the Waymo rides, etc. But zero Teslas. And the public does think Boston Dynamics is the robot player. But this is the one thing about, uh, Tesla is they don't advertise. And, you know, people, a lot of Tesla tubers actually say Tesla should advertise FSD because it saves lives. But anyway, they don't. And mainstream media hates Elon and Tesla because he's a threat to their business, and he doesn't pay for advertising, which makes them hate mainstream media hate Tesla even more. Also, the fact that X is eating Tesla as well, or eating mainstream media, it's a problem all over the place. But again, the beauty of this is when nobody knows about an asset and what it's capable of, and you can front-run the public. This is the edge that we have, which is great. And their ignorance is our alpha. So, be grateful for this. If everybody had the same information, we'd all be poor. Okay? But having an edge is how you make it in the markets. And Tesla's data mode is billions of miles, backed by the most extreme vertical integration that's ever been seen. And their margins are probably going to be 10x the competitors like Waymo. It's not going to work unless it's for just a limited use case like limousines or something. And their end-to-end neural nets is the best and can scale anywhere. We've seen the cars drive in Japan and Korea and China, across Europe, uh, everywhere. And once unsupervised FSD drops, that will be the wake-up moment for the world. And then when cyber cabs are everywhere and all over the streets in 2026 and 2027, plus Optimus and factories, the narrative will flip overnight. And that's when everybody. And then yesterday, last night, it was the Terafab. We'll talk more about that now. But this is, I actually was a free paper if you want to see it on Substack. But it's another cheat code beyond what most people don't actually understand. And Elon said again this morning, SpaceX AI plus Tesla Terafab project. SpaceX is going to pay for 80% of the development of the chips because they're going to go into data centers in space that Starship will take there. And his goal is a trillion dollars of compute a year. And he said the only place to do that is space because the US only produces half a terawatt of power. So solar power is where it's going. And the chips will be made by Tesla and the Terafab and paid for by SpaceX. It is just a very special situation. That's kind of the next frontier that nobody really realizes, which is great. Now, what does it mean for us? Well, we can get our 5 to 10x return. The general public ignorance is that advantage. Huge multipliers are coming. I've never been more certain about a stock in my life. And I've been analyzing stocks for 36 years. There's no risk-reward like this at all. And, uh, by the time the normies wake up, we'll be able to cash out and retire. So that's the end game. Again, it's a beautiful situation, and you should be grateful that it's a secret. And then other people say that it's like a cheat code. Another cheat code is when you have FSD because you see how good it is and how it progresses so well. Anyway, thank you for the question.

Next one is from One Fit Pork Chop. Hi James and team. I have the retire on Sol amount, but I'm short Tesla and I'm thinking through selling half the Sol to buy Tesla on a dip or under $400. This will get me close to the retire on Tesla. I feel much more comfy with a larger bag of Tesla and can almost feel it as the LOBs are set to explode. Yes, LOBs are lines of business, and I calculate 14 of them and the craziest catalyst over the next 12 weeks as well that we'll ever see. Appreciate the input. Thank you, One Fit Pork Chop.

Another pair trade, just like we saw before, Micro Strategy Tesla. This is Sol Tesla pair chart. Again, we are under level one on the ATR. This means Sol compared to Tesla is extremely cheap. If you, if you zoom into this chart, there was a time not too long ago where you could get 1.3 shares of Tesla for every Solana. Think about that. And now it's like a fraction. So anyway, it is, this trend is turning up as well. So if you were a betting person or a trader, what will outperform based on the chart? You'd think Sol is turning around and Sol will outperform Tesla because it's beaten to death. That's just the simple fact of the matter here. Uh, but there are some interesting things happening behind the scenes. One, the rebalance math. You hit your retire on Sol size, which is good. Selling half locks in massive gains, and you can deploy capital into Tesla under $400. It closed at, uh, I think $367. It's probably going to open around $375, $380 with the Terafab news. Um, and you're moving. This is interesting because we're in this weird situation. I said about a month ago, I said the two fastest horses I see right now are Solana and Tesla for the next three, four years. That's it. That's it. But you have two different players. You've got Solana being the agentic economy. AI agents are going to be transacting using Solana like in a crazy scale, billions of them. And then you got to look at risk-reward. Okay, you have the physical manifestation of AI, which is Tesla, self-driving cars, robots, space chips. It's absolutely incredible. Just do, for those who do not believe in Tesla, take a piece of paper and try write down any company on earth that has even 1/4 of the capability that they have and the ability to execute and do it profitably. That's your homework. But anyway, back to your allocation. If you do do this, you know, risk-reward, Tesla is the safest. And yes, Solana may be faster, and that's always the risk you take. So, I think it will help you win the retirement race. I've been talking about 300 shares of Tesla now for 5 years. A lot of people have that bag, which is good. But the TAMs that they're going after are huge. Roboaxi, Optimus, Energy, Space, mind-blowing. But Sol is incredible as well. But the, are the TAMs that Sol's going after as large? No. But is a markup small? Yes. And a larger Tesla position may help you sleep better at night. But remember, this is, this important part here. They're both fast horses. Sol is in the deep value zone right now, but moving to Tesla will help you sleep better at night. That's it. It's that simple. Watch for taxes and capital gains. Make your own decision. And remember this too. This is the so-called trader curse. I'm gonna move myself down to the bottom left. Okay. When you buy something, sometimes it falls. It's like a meme. When you hold, nothing happens. And when you sell, the asset you sold goes up. So be aware of that. And therefore, you should always do everything in layers, gentle movements, and balance risk-reward at all times. Always. Because predicting what'll happen over a short window of time is extremely difficult. Predicting what will happen over two, three years, much easier. Hope that helps.

Next question is from Wellness Coach. Thanks for the update and Leaps Cheat Sheet. Leaps Cheat Sheet. I know you've spoken about avoiding leaps when they're too expensive. Is there a simple way to look at that and decide on options versus just buying spot? Is the CAGR under 10% given they're green on the cheat sheet? Uh, I wasn't ready for leaps options when I joined your community a few years back. Some missed those juicy entries. But after stacking Tesla and Micro Strategy and miners over the last few years, I now have a small mattress I'm keen to put to work. I've been loving the fireside options calls meetings. Much appreciated. Thank you so much, Wellness Coach.

Let's look at this. Now, this, if you're not an options trader, this might sound like double Dutch, but it's not hard. Okay, this is the simple quant filter I use every time to beat the implied volatility tax. What I mean by that is if the asset is volatile, the price of the options is through the roof. You don't want to buy during volatile times. You want a delta of greater than 0.85, which mimics stock-like behavior, but a little bit less, 15% less. So if, for example, if the stock goes up a dollar, your option will go up 85. Your implied market volatility rank should be less than 50%. And that helps you buy cheaper options and avoid the intrinsic value crush. And also, extrinsic value over time should be kind of less than 25, 30%, 20% of the total premium. Anything higher is an expensive bleed, and you're better off buying on margin.

Now, a simple way to look, I'm going to turn off my camera for this one so you can see the full screen. You got to calculate your leverage ratio. Okay, so your delta times the strike plus the premium paid is the key things to be aware of, divided by the premium paid, I should say. Delta times the strike divided by the premium paid. So a number between zero and one tells you how much the option moves and the stock moves. $1 and 90 delta, 0.9 delta means the option acts almost exactly like a stock, but if a stock goes up a buck, your option only goes up 90 cents. And the fixed price you get to buy the stock later, which is the strike, eg $300, if you paid $120 premium, then you can calculate you have 2.25x, 25x leverage versus buying the stock outright. That is the simple math behind this. And if you got to wait 18 months for this to happen, it's fine. But you don't want to buy a lot of time over an 18-month period because that will decay over time as well. You also need to only do this on stocks that are going to go up in value and up dramatically to overcome that theta decay. So, so important as well. If, okay, if your intrinsic value is greater than your historical average or extrinsic is greater than 20% annualized, just buy the spot. It's not worth, uh, buying the leaps. Now, the one exception to that is when the stock is beat to hell and it's down in the toilet, then you can go ahead and do that. So then it works. Okay. And then finally, in summary, expensive leaps, avoid them like the plague. Everybody buy cheap in-the-money ones and be focused on not buying them when it's very volatile. You get 100% to the upside or sometimes 2.25x leverage versus buying the actual stock, and use the cheat sheet religiously. Very easy. Very easy.

Next question is from Island Pilot. Does STRC accumulate cash and loan it at a roughly 11% to Micro Strategy for Bitcoin purchases? And does Micro Strategy hold the Bitcoin, thus increasing sats per share for Micro Strategy holders?

You're asking the right questions. And sometimes these things, they sound too easy, too simple, too good to be true. But the best things in life are simple. Let's get into this one. And first of all, yes, this is what they do. This is the playbook has been for the longest time. It's a perpetual, the STRC is a perpetual preferred stock yielding 11.5%. Investors buy at $100 at par. The company takes that cash and immediately deploys it into Bitcoin purchases. Often STRC is converting on a daily basis. If they pull in a million bucks, they buy a million bucks of Bitcoin. And it's not a traditional loan with a maturity date. It's permanent capital with a variable monthly dividend that anchors the price. If the price falls below, say $100, they increase the actual dividend to 11.5 or whatever to bring it back up. And remember, it's not like a normal loan or bond where the company has to pay you back at a certain date. It's permanent money for the company, and it never has to give the $100 back.

Now, how does it work? Okay, this is the important piece. Uh, you can see they've added thousands of Bitcoin via STRC proceeds, which has made the SAT accretion positive again. We'll get to that in a second. As long as the Bitcoin, the yield on Bitcoin outpaces the dividend cost, it's mathematically accretive. I hope I'm going to repeat that again. As long as the yield on the Bitcoin outpaces the dividend cost. So as long as they're adding more than say 11% Bitcoin a year, you're good to go. Micro Strategy keeps every single Satoshi Bitcoin and they own right on their books. Nothing is hidden. And the last few weeks alone, they used the money from selling the special forever stock STRC to buy thousands of Bitcoin. And the magic part again is that piece, they just need the yield to be higher than the actual percentage for it to be accretive. And proof of that too is, I believe this is why Micro Strategy's back and they had their iPhone moment. Because STRC is the most elegant, aggressive capital raising machine in corporate history. No ifs, ands, or buts. The common shares get the leverage rocket fuel without the repayment pressure. And this is the accretive flywheel. Buy Micro Strategy and let Sailor do the heavy lifting. Or as I say, I let Sailor DCA for me as well.

Now, if you look at this chart here, this is since 2020. Now, I've shared this before, but I'm sharing it again because this kind of answers all of the questions. You can see this is, this begins with the amount of Satoshis per share when they started buying in August 2020, and that was about 20,000 Satoshis per share. Now, the amount of Satoshis per share is 220,000. So it's gone up 10x, and the Bitcoin price has gone up 6.1x. So if you had one share of Micro Strategy way back here and waited, you now have 10x the Satoshis per share, and the price of Bitcoin, the underlying for the asset, has gone up 6.1x. That is the magic of this thing. Will it come back to good NAF premiums again? I'm not sure. But either way, the little tick up here on the chart you see at the very end, this means it is now positive Satoshi per share accretion. When they were selling shares with an MNAV under one, it was bad, but now MNAV at one and selling STRC, it's very good again. This is the magic. Hope people get that.

Next question is from Pandaman. I'm a big fan of your faster horse philosophy and would love to deploy more funds to Tesla at these prices on sale. However, I'm fully invested at the moment and have no dry powder. As an alternative, I'm considering selling some of the Tesla stock I currently own and buying a deep in the money leap with the proceeds. Using the LEAP calculator, it appears Tesla leaps are very attractive at the moment. The calculator suggests I need about 10.3% compound annual growth rate to break even on the December 2028 calls 350 strike. This sounds like a great risk-reward position to me. Would love to get your thoughts.

Well, it is. It is indeed. And yes, deep in the money leaps, 2027, 2028, delta 0.58, 0.85 to 0.9, just like we discussed before on the options cheat sheet. Okay, this acts like a leverage stock. Way less capital tied up. And by the way, if you're not, if you don't understand LEAPS, take the time to understand LEAPS. You get a lot more leverage, a lot more buying power. They are a miracle. And you're looking at somebody who is the product of being made from things like leaps and covered calls. So if you sold $100,000 of Tesla spot to buy the equivalent exposure for 40 to 60k, call it $40,000 will give you the same exposure. And this frees up the cash for other dips while keeping your upside position intact or just increasing the leverage. So the answer is, yep, absolutely. The pros, no margin interest, and you get huge convexity if Tesla rips, very good sign. The cons, however, uh, if the stock stays flat for a number of years, that's not good. Uh, there will be that time decay. The break-even, remember, if your conviction is Tesla to $600 plus, this is very, very smart synthetic leverage. Will we be at $600 plus by, what was the time frame? Hang on. Bear with me. December 2028. The answer is heck yeah. Absolutely. And remember, uh, do it, but size it right. Don't do this for your entire bag. Do it for part of it, just to get that extra leverage. Again, with the price now at like $367, it's going to $650 within a year or 18 months. It's a no-brainer. Again, as long as Tesla executes.

Next question is from Kyle 3466. Had a fun thought that I realized could be an interesting thought experiment. What if Sailor bought IBIT instead of Bitcoin one week, partially or fully, or any other fun variables you can think of?

Interesting. If he did, it would go against his religion of "not your keys, not your coins," and the fees would drag on the returns. The 0.25% annual fee would be a drag. And on $52 billion, that's tens of millions drained from the balance sheet just for a paper derivative. No leverage, no capital structure, no alpha, no STRC. No, but I like the way you're thinking. And but why they do succeed is because of things like STRC. They do hold the bearer asset directly. They can leverage it using corporate corporate leverage, and therefore they get two to 5x better returns than things like IBIT. And the funny part here is some people say IBIT is for boomers. PS, I have some, not a boomer, just below that age. And Micro Strategists for Chads. I have some of that too. So I got both, and I got Bitcoin. So I like them all, and that's how I get exposure. Now, what would they do if they did it? It would be a hybrid portfolio, but it would lose its purity, and there'd be no leverage. And Sailor wouldn't do it. But I like the way you think. Thank you for the question. And remember this is the magic. Okay, 2020 sats per share, uh, up 10x, and Bitcoin up 6.1x, just since 2020. And that is the game that he is playing. Hope that helps.

Next question is from El Gregoro. Simple question. What are your thoughts on UWMC? I found WMC a little after IPOed while I was buying a house. I was generally pleased with the speed and experience using them to buy my house. Since then, I basically treated the stock as a low-risk cost training ground for option strategies. But at its current price, and the dividend is over 10%, it seems like a decent spot to park cash while shopping around for other opportunities.

Let's look at this one. This one is super interesting. Uh, first of all, there are some bad things about it. One, the sales, general, and administrative expenses. Nearly 80% of revenue, huge. Again, I guess maybe mortgages need to be sold hard. I'm not sure, but the overhead is pretty extreme. Also, they've got growing debt, which alarms me, and literally no profit. Now, I realize that back in 2019 were the good old days for mortgages, 2020 a little bit during C19. Since then, dead nothing. Will it return? That's the question. Now, this is the chart for UWMC. Uh, you can see here, it's at level two on the ATR, so not, not bad. But there's no buy signal, and the trend hasn't turned around, so that's not good. But it's definitely beaten down from what it was, level five in the past. Now, they are the mortgage king at bargain prices. They do have an 11% dividend, which is big, and a lot of analysts are targeting $6.50, which is 80 to 90% upside from where we are today. So all of that is good. The financials, I didn't like, and the debt, I didn't like. But this is definitely good, and the macro setup is very positive. Once they get J-Pow out of office, the new guy will cut rates, and that will trigger a refinance boom because there's a lot of people out there with mortgages they cannot refi because the rates are so high. There's a lot of people out there as well that are dying to sell. They cannot sell because they can't buy something else because the rates are too high. Everybody is stuck, very stuck. But this could bring by a big boom for that particular business. So it should be good for them. Now, it's not something I would touch. I don't like, uh, the financials. I don't like the no growth. But I can understand an 11% yield, which I get on STRC, and the 80% upside. Very interesting. So, it is a no-brainer high-yield bet. Buy under four, collect the dividend, ride it out for the next two or three years while your main bags run. Again, I don't have it. My goals are not your goals, but it is interesting for sure. Thank you for sharing.

And this week we are helping animals. We donated to Sloth Institute to help Dr. George Omali. George lost his mom due to power lines. And George himself sustained some injuries. Uh, but now he's recovering, gaining weight, and getting stronger in climbing. So big thank you for that, too. And tomorrow, Rob is back. Mando is going to be out, but Rob has agreed to join us for DCA tomorrow morning. So, thank you all for being part of the team. I'm going to do some live questions right now. I'm going to take this back to the beginning. Uh, first question, let me get this.

First question is from Ron B. I have good-sized bags of Bitcoin, Sol, Tesla, Micro Strategy, and I still buy on dips. Should I add Nvidia? I do not want to own one share. I do not own one share. Sorry. Is it a good time to buy at $172 a share? They just stick with what I'm doing. Thank you for everything.

Yes. So, Tesla, Nvidia, are my two big AI plays. Everybody needs some Nvidia. And, uh, we just heard Jensen Huang this week saying they expect to get to a trillion dollars in total cumulative revenue, uh, in a year or two. So their growth is not slowing down. Uh, the PE is low, about 21x. Their growth is 40% plus. And last time I checked, all the Wall Street analysts target $275. So buying at $170 up to $275, the 60% upside ballpark. And, uh, there's nothing wrong with 3 to 5% of your portfolio, maybe even 7% being Nvidia. So yes, Ron B, go for it.

Uh, Doc, with so many Tesla milestones in the next few months, if you had to choose some short-term call options for maximizing gains, which would they be? Can you please show an option chain? Thanks.

Well, first of all, Doc, um, short-term options are for selling. You sell short-term puts, you sell short-term calls. You do not buy them because you're just buying time, and you're going to get hammered with that theta decay, which you've just discussed a lot. Um, you sell those things for premium. Uh, they're lottery tickets. Now, with the price of Tesla being so low, like at $370, you should be looking at the $350 calls or even lower, and look out to 2028, like December 2028. That's what you should be buying, and just be patient. Don't try to get cute and trade the next 12 weeks because you think this catalyst. Remember, we have traders out there. They will not recognize any of the catalysts until they see the premium or the revenue and the profits hit the accounts. And that always takes a long time too. So again, look for 340, 350s and go way out. If you want to get really clever, you could play a spread, 340, 350, 360 spread, get a little bit of credit, but that would be what I would do. But I, I go leaps. That'd be the safer bet. Doc, turn. Thank you.

Sir Winston, I have Tesla options expiring 12/16/2026. So that's Christmas time this year. I want to exercise them, but wanted your thoughts. To preserve cash, I was thinking of selling Nvidia and Amazon shares at 1/3 cash and Amazon Nvidia to cover the rest.

Yeah, Amazon is shaky right now because they're spending so much on capex to compete with Microsoft with AWS versus the Microsoft Azure. So I, I wouldn't feel bad getting rid of Amazon. Selling Nvidia. I think it's kind of a coin toss if you look at the next say 12 months, which has more upside. Like it's a, it's a coin toss between Tesla and Nvidia. So, uh, I'd focus more on selling the Amazon shares. Try to hold as much of the Nvidia as you could to cover that. Sir Winston, hope that helps.

What are the top two assets that you will sell covered calls against and why?

I sell covered calls against everything. Um, I sold covered calls against Circle, Clean Spark many times, Micro Strategy many times, Tesla many times. Uh, when they, when I got a massive mean reversion spike, huge volatility, I sell a call. I don't care what it is. So, uh, if you look at the actual amount of premium I collect, probably most of that would come from Tesla because it's my biggest position right now. And I hope that helps Joe Biden's Daycare. But again, don't people make the same mistake all the time. Don't, don't let the, I should say, should the camera come on. Let the chart tell you when to sell things. Don't feel compelled to sell things or say, what are the two favorite things to sell against? The chart determines actually when you sell on a big mean reversion spike as well. So thank you Sigma 103 and Hexel Buggh Horn, Piper DBF430, Nickm, Swiss Guy, Richie. Appreciate everybody for coming today. And I think I got all the questions. Let me know if I didn't.

Uh, so we got Rambi, Doc Intern. Ah, good. From Chuck. Would you trade a Rolex $120K collection for Tesla or would you wait a bit either for Tesla to hit lower or Rolex to go higher? Watch daily and Patreon member, um, and just don't have the courage to ask. Love my steel Rolexes, but they won't retire me.

So, this is an interesting one. Uh, there was a time during C19 back in early 2020 when Rolex had supply chain problems. You couldn't get parts, and the secondhand value of Rolexes went through the roof. That was a great time to sell. Same thing because people were bored. They wanted to buy things like yachts and stuff. So that's that's when you sell collections, boats, you know, 2020, 2021, very, very good time to do that. Um, right now, I do not track Rolex prices. I do know they're probably pretty high. Um, and I do know in the age of AI, scarcity rules, they could do okay. But I definitely know for a fact that Tesla will outperform Rolex. Having a watch or a collector's car, nothing will compete with the CAGR of Tesla. So, it's a $120,000 collection. Dump it. Get 300 shares of Tesla, and that's enough for you to retire on. You can't retire on your Rolex collection, though. Uh, that's for sure. Hope that helps, Chuck. I love the question. And, uh, yeah, you guys rock. Rolex. We're slinging Rolexes now. Rolex sh. No, we're actually telling people to sell their Rolex. Anyway, I don't believe in that stuff. No watch. But I do have a $99 Fitbit from Costco. Thank you all everybody for coming. And thank you to Mods and Chat, Shant TD, Cipher Sniper, K8, and everybody else for being here. See you tomorrow morning. Bye.