Leg 0
Core Philosophy — Independence from Market Irrationality
The Reusable Capital Float Engine rejects dependence on market price appreciation.
Instead, it engineers cash realization up front through deep in-the-money
structures that harvest intrinsic and time value immediately. By detaching returns
from short-term volatility, the investor becomes a capital engineer,
recycling released float at predictable 1–3 % monthly yields.
Value is realized, not hoped for — markets may fluctuate, but cash flow compounds.
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Leg 1
Dividend Float — Western Union (WU)
Boost effective dividend yield by shrinking locked capital.
Extract cash on day one with a deep ITM LEAP call, let dividends continue,
and redeploy the released capital at 1–3% monthly.
Why it works: LEAP time value often deters early assignment; valuation and balance-sheet strength act as guardrails.
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Leg 2
Real Earning Extraction — Apple (AAPL)
Showcases how Capital Extraction Yield turns the same earning period into
real, bankable cashflow. While Owner Yield relies on reported EPS or dividends,
deep ITM covered calls extract that value upfront, deferring loss recognition and
compounding float within the same timeframe.
Example: AAPL’s $7 annual EPS can be extracted as real cash in just 2–3 months via premiums.
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Leg 3
Overvaluation Extraction — CrowdStrike (CRWD)
When forward multiples run hot, sell rich valuation and bank float.
Capital is already extracted; if price compresses, risk falls further while
your compounded float keeps working.
PEG awareness: monetize exuberant multiples into certain yield.
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Leg 4
Capital Loss Reversal — Turn Loss into Income
Convert unrealized losses into a productive income engine.
Write deep ITM calls to extract float, defer loss, and let monthly compounding
outpace the drawdown over time.
Outcome: the same “losing” position funds its own recovery through float.
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Leg 5
Float Redeployment — 1–3% Monthly Yield
Allocate extracted float into undervalued and earnings-play setups
designed to deliver steady 1–3% monthly returns. Measured, repeatable, and diversified.
Discipline > prediction: cashflow first, valuation always.
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Leg 6
Float Recycling — Reusable Capital Engine
Demonstrates how one pool of cash can fund multiple deep ITM covered-call trades in sequence,
releasing 90–98 % each time while the small retained balance still earns double-digit returns.
MP → NBIS → BE sequence showing ≈ 13 % average gain on locked capital.
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Leg 7
Progressive Roll Rule — QCOM
Every ~6 months, roll long-dated ITM calls forward in time and down in strike
to refill extrinsic value. This repeatedly converts time into cash and
compounds your float—without adding shares or chasing price.
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Leg 8
Oscillating Capital Extraction Rule — ELF
Uses valuation oscillations around fair value to repeatedly harvest cash
from the same shares. When ELF is overvalued, run deep ITM capital extraction;
when it normalizes, reset with long-dated covered calls at a fair-value-based sell price
and repeat the cycle.
If price runs, you extract again; if it goes nowhere, you still keep the one-time gain
plus ongoing theta from the long-dated call.
Read Case Study →
Leg 9
Fair-Value Anchored Extraction — Oracle (ORCL)
A model case where a high-quality, overvalued business is paired with
a deep ITM, long-dated covered call. Locked capital is engineered down to
≈ fair value, while the strike is later rolled up to improve the
effective sale price and achieve a high CAGR on locked capital.
Shows how to “pay what you want” for ORCL (near $190 fair value) even when
the market trades far higher, with significant float and a rational 2028 exit.
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Leg 9-A
Overpay Rescue — IREN Fair-Value Extraction
A clean example of using fair-value anchored capital extraction to repair
an overpay. IREN was bought far above fair value (~$30.00),
then a deep ITM LEAP call at $35 with $47 premium per share converted a
potential large drawdown into a contractual profit path.
Shows how buying too high can still be salvaged when you immediately anchor risk
near fair value and turn excess valuation into reusable float.
Read Case Study →
Leg 10
Tuition Trade — CRWV (Fair-Value Rule Violation)
A “what not to do” example. Capital extraction was applied without a
reliable fair value or strong balance sheet. Premium looked attractive, but
a weak underlying and debt risk led to a realized loss when the thesis broke.
This trade crystallized the Fair-Value Anchor Rule: no clear fair value and
no survival confidence to expiry → no capital extraction, regardless of premium.
Read Case Study →
Disclaimer: Educational illustration only; not investment advice. Options involve risk. Dividends may change.
Manage early-assignment risk near ex-div dates. Use with valuation discipline and risk controls.
