CRWD — Capital Extraction from Overvaluation

CrowdStrike trades at a forward PE of 125 with revenue growth near 20% and projected 2026 EPS ≈ $4.80. Buying at $518.73 claims only $4.80 per share in yearly profits — an owner-earnings yield of 0.93%. On 100 shares, that’s about $480 per year if you simply hold.

Instead, sell a deep-in-the-money $250 covered call expiring Sep 18 2026. You immediately receive $30,700 cash — (100 × $307.00 premium) — releasing capital and reducing locked capital to $21,173 (~$211.73/share).

Your effective sale price per share is $250 + $307.00 = $557.00, which on 100 shares equals $55,700 total. Versus your cost basis $518.73, this locks in an economic gain of $38.27 per share (× 100 = $3,827 total), with $30,700 already in hand and the strike value secured by contract.

This is the Capital Extraction Framework: convert overvaluation into real, contractual cash flow (e.g., $30,700 cash released from selling the deep ITM call) and compound the freed capital at higher effective yields while keeping downside risk clearly bounded.