IREN has strong growth potential and could reach $30-35B market cap in 12-18 months driven by its cheap energy advantage for AI infrastructure.

Hey guys, today we're going to talk about IREN stock. I am currently using the wheel strategy on this stock. Look at IREN stock, it's priced at $45 per share.

I have earned $6,000 from the covered call options I own on IREN stock, which will expire in 10 days. So, I make huge profits from IREN just by selling the options.

Because IREN stock was a very profitable investment in our community. In fact, what I rent is data centers and lease them out, in addition to securing the power needed to operate them.

This includes land, buildings, network connections, cooling systems, and more.

What makes IREN unique is that it was previously a Bitcoin mining company. As you know, Bitcoin mining consumes enormous amounts of electricity, and this is something the company has cleverly exploited.

They are currently selling electricity, and this is extremely important because it represents one of the biggest challenges in the field of artificial intelligence.

As you can see , one way they obtain cheap energy is by looking for stranded energy, that is, energy that is produced but cannot be sold due to a lack of domestic demand, inadequate transport infrastructure, or other logistical challenges.

Therefore, Bitcoin miners act as a last resort for buyers. Miners benefit from competitive energy prices, and thanks to their expertise in this field, they are able to sell energy and make huge profits.

In short, they operate on the same infrastructure as other AI systems, and they can't believe it. This was just a Bitcoin mining company, and now it has a market value. I will explain that to you. The market capitalization here is $17 billion.

Frankly, I think it has much broader prospects ahead in the future. I think $17 billion is just the beginning , and it could reach $30 or $35 billion in the next 12 to 18 months .

This stock makes up approximately 2% of my investment portfolio, and I have been investing in it for a while. I was actually incurring losses for a short period because my average purchase price is $45.

This is a relatively new position for me; I've entered and exited it several times due to the "wheel" strategy, where I would let the stock's price drop. When all my covered buy options are winning, I let it go down.

I have successfully implemented the " wheel" strategy, but it seems I will lose my shares this time.

Currently, I am leasing this stock at $45 per share, and its performance has been relatively stable over the past three months. Yes, the price has dropped from a higher level at which I was not investing, and I am proud to say that I was not investing at those prices, as we in my community decided that it was too expensive .

So, I recently entered the market, and let's take a look at my track record.

So, I sold a call option at 55. I did that for January 2027. We can move to a slightly lower price here. I sold a covered call option at 45 for 918 with an expiry date of September 18.

That was on July 20th. Okay, July 20th. It's a really interesting history.

So let's go to IREN stock on Yahoo Finance. I just want to see where the stock was trading on July 20th. Yes, on July 20th , I sold a covered call option at 45. Let's see how accurate my choice of the right strike price was , as this is very important in the wheel strategy.

You need to make sure you choose the correct execution price .

On July 20, the stock price was excellent, less than $40 per share. So, I sold a covered call option at $45. Ironically, nothing of note happened. This is somewhat frustrating.

In the ideal scenario, when I sell a covered call option as part of a wheel strategy, I want the stock price to get as close to the strike price as possible without going over it.

If the price exceeds the execution price, that's fine. I can either let it be sold, which I have done repeatedly with IREN shares, or extend it, and I have the choice between the two.

Interestingly, I am very close to the point of profit. Actually , I am out of profit , but when the market improves, I will be a winner. Therefore, it is very important that I manage this center closely .

Currently, there are 10 days left until the recording period for this video ends. Therefore, I will not do anything now, but you can see how accurate this analysis is.

What is most interesting is that if it gets very close to the execution price, this indicates the accuracy of my expectations as an investor. Because if I had guessed, you know, and I'll call it a guess for there's no better term, but if my prediction for the stock price in September had been 55, I would have lost a lot of money because 55 would have given me a lower premium.

If I had chosen an execution price closer to the profit price at that time, i.e., at 40, I would have lost some money because I would have received a larger premium, but I would not have received an additional profit of $5, because 45 is $5 higher than 40, of course.

Therefore, you made the right choice in setting the appropriate execution price . This is extremely important.

I wanted to use IRNT stock as a case study because it is a relatively cheap stock . So, if you follow the wheel strategy, you will need less than $5,000. You can start with as little as $4000.

Therefore, I believe this is an excellent option for investment portfolios with values in the five-figure range or higher, and it is very useful for diversification. It is a high-growth stock that does not strain the balance sheet.

Well, as you can see, I have 2000 listed shares that are within 2% of my portfolio . I will not use this option , and you will notice that I have earned 52% , but in the next ten days, if I do not make any return on the rent, this option will add another 15%, because it is still worth $5460.

So, literally, without any effort, if the share rental price stays at $45, I will earn $5400.

The reason for this is that if the rental price remains roughly constant, this option will have no intrinsic value. All the value you see here is external value, and it is essentially market fluctuations and time.

There wasn't much time left. So, it's more like "what if?", that's what's left of the value. Which is the remaining value in the option premium that I will earn. I earned the premium when selling the option, but the remaining erosion value will increase the value of my account when the option expires.

As you know, I think this company is really excellent. Bitcoin mining has taught them a skill that surpasses most other companies: how to obtain cheap energy in large quantities.

This is the essence of Bitcoin mining , where mining used to require enormous amounts of electricity. As you know, I am no expert on cryptocurrencies, but they require large amounts of electricity to produce Bitcoin.

Now they know how to secure it , and they are expanding their operations.

In any case, the stock I manage here is also likely to perform very well .

When implied volatility is as high as it is in the IRN, i.e. $3.55 here in one month at a price of 42, that means it is approaching 10% as a percentage. That's amazing, is n't it?

So, when I look at this opportunity, yes, you could lose money if rental prices fall , which is a possibility, but I would personally be happy to own shares in iRent at $42 per share. I would be happy.

So, the return I get here is amazing. Not to mention the breakeven price, which is $38.30, or maybe a little higher, right? Because if you get $3.55, the amount will be slightly higher than that.

It will be $38.45 after the calculations are done, right? In any case, you take the execution price and subtract from it the option premium you receive. So, $38.50, great! This is approximately the break-even price.

This is excellent. This is excellent because you are selling an option at an execution price of 42, but when you get the option premium, you will actually get less than $40.

Here, at this price of 42, I accumulate $3.55, and this is what I plan to use to start my next wheel strategy. I will most likely do that in conjunction with my current position.

So, when the market opens, which will be soon, I will inform my Discord community that this is our next strategy for the wheel on IREN.