How to Earn Weekly Income with Covered Calls (Beginner Tutorial)

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Most people who own stocks don’t realize they’re sitting on a potential income stream.

If you’ve ever bought 100 shares of a stock and just… held on—this strategy is for you.

It’s called a covered call, and it’s the foundation of how we help traders replace their paycheck with options.

Today, I’m going to break it down in a beginner-friendly way so that anyone can understand how it works—even if you’ve never traded options before.

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✅ What Is a Covered Call?

A covered call is a simple income strategy where:

1. You already own shares of a stock (typically 100 shares)

2. You sell a call option on those shares to someone else

3. That option gives them the right (but not the obligation) to buy your shares at a set price before a specific date

In return, you get paid cash upfront—called a premium.

Because you already own the stock, your position is “covered.” That means the risk is lower. You’re simply agreeing to sell your shares at a slightly higher price if the buyer wants them.

🧠 Think of it like “renting out” your stocks for income—weekly or monthly.

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💸 Why Use Covered Calls?

Let’s break down why investors love this:

• ✅ You get paid instantly when you sell the call

• ✅ You keep the premium no matter what happens

• ✅ You can still sell your stock at a profit

• ✅ You can repeat it every single week

It's one of the simplest ways to generate consistent, reliable income from stocks you already own.

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📈 Real Example (Apple Stock)

Let’s say you own 100 shares of Apple (AAPL) at $170.

You sell a call option with a $175 strike and collect $1.50 per share = $150 in income.

• If AAPL stays below $175 → You keep your shares and the $150

• If AAPL rises above $175 → You sell your shares at $175 and still keep the $150 premium

Either way, you win.

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🤔 Who’s Buying These Calls?

Covered calls work because speculators and hedge funds want leverage.

They’re:

• Betting the stock will rise

• Using calls for higher upside with less capital

• Hedging large portfolios

You’re offering them that leverage—and they’re paying you for it.

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⚠️ What’s the Risk?

There are two:

1. If the stock drops, you still own it—but its value goes down. Your premium helps cushion the blow, but it doesn’t eliminate the risk.

2. If the stock skyrockets, you miss out on big upside. Your gain is capped at the strike price + premium collected.

Example: You sell a $150 call and the stock shoots to $200. You still only sell for $150.

That’s why it’s best used on stocks you love and wouldn’t mind selling at a small profit.

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🔁 The Weekly Income Formula

Covered calls are repeatable and scalable.

Here’s the system:

→ Own 100 shares
→ Sell 1 call option
→ Collect premium
→ Repeat every week

Goal: Earn 1% per week on your capital

That’s how we help traders replace their income—one trade at a time.

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🎯 Get Started

Covered calls are one of the first strategies I teach inside the Freedom Income Engine because:

• They’re beginner-friendly

• They work with stocks you already own

• And they create weekly income you can rely on

If you want to go deeper, here are your next steps:

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✅ Next Steps

Get Your Replace Income Roadmap:
https://reports.ubpages.com/replace-your-income-roadmap/

Join My Weekly Live Training:
https://reports.ubpages.com/replace-your-income-webinar/

Follow for Daily Trade Alerts:
https://t.me/caseystubbstrading

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If this tutorial helped you, reply with a comment or question—I personally answer every one.

And if you'd like a follow-up tutorial where I walk through a live covered call trade, let me know. I’ll build it just for you.

Let’s help you replace your paycheck with options.

Casey Stubbs
Freedom Income Options
Replace Your Paycheck, Reclaim Your Freedom.