Zero To Hero Challenge Ep6: Consolidating Assets

This week was BRUTAL! Nobody was spared from the volatility as the FOMC meeting adjourned and Jerome Powell announced a 75 basis point hike, or 0.75% increase to the fed funding rate.

This shook up all markets as people realized the federal reserve was going to stay hawkish on the economy. Pivoting into a neutral or dovish stance is now off the table until at least next year.

On the plus side the prices have leveled out for everyone to buy back in across all markets. Even gold was feeling the pain today when it hit lows it hasn't seen since April 2020. More than two years of gains in bullion markets have been wiped out which signifies that different stores of value are being tapped by holders- including Bitcoin, which is digital gold of course.

Bitcoin is clinging onto those support lows we bounced from last June after the Celsius and 3AC meltdowns. Before that we saw these levels in December 2020 just before the major run up. How low can we go?

I ended up capitulating on BKKT and AVAX yesterday to consolidate my capital into BBIG. The covered call premiums are too good to pass up and they have been very volatile lately. Now I have 500 shares and can write up to 5 contracts per week using them as collateral.

Here are some screenshots from the last few days:

Recent actions:

• Sold all AVAX
• Sold all BKKT
• Bought 300 shares of BBIG
• Sold 3 more covered calls using BBIG

So in summary, I have 5 covered calls open on BBIG using 500 shares. I have some spare cash from the premiums which can be used to (buy to) close the calls. The plan is to generate consistent cash flow from these 500 shares now using The Wheel.

Should I get called away at $1 per share then the money will be used to write cash covered puts.