How I Made $11,000 in a Week Using Covered Calls — Even in a Volatile Market
Covered calls remain one of the most consistent ways to generate income from the stock market—even when volatility strikes. In this week’s trading update, Mark Yegge demonstrates exactly how he pulled in nearly $12,000 in just one week using his reliable covered call strategy, all while navigating the erratic moves of a highly volatile stock—MicroStrategy (MSTR).
Let’s break it down.
Trading Amid Chaos: Why Volatility Is a Gift
While many traders fear red days and erratic price swings, seasoned option sellers like Mark see opportunity. Volatility means higher option premiums, or what Mark calls “juice.” That’s income potential for those selling options.
MicroStrategy’s price had been dropping aggressively throughout the week, but rather than panic, Mark stayed disciplined. One of his rules? When the stock price of MSTR drops significantly, he adds to his position—buying more contracts to take advantage of higher premiums when the market rebounds.
This week, as the stock dropped, he increased his holdings from 7 to 12 contracts. That prepared him to earn more when premiums spiked due to rising volatility.
Rolling for Profit, Not Panic
Mark had previously sold $322.50 strike covered calls, but as the price fell well below that, it was time to adjust. Instead of letting those calls expire or risking weekend exposure, he bought them back—at a small cost of about $130—and prepared to roll into a new position.
He chose to roll into April 11th $300 strike calls, selling 12 contracts for $985 each, generating $11,640 in total premium income—exceeding his weekly goal of $10,000.
Why did he pick the $300 strike?
- It’s far enough out-of-the-money, reducing the chance of being "whipsawed" if the stock price rebounds.
- It leaves room for upside in the base position.
- It still offers rich premiums—thanks to the ongoing volatility.
Managing Risk the Smart Way
The biggest fear many have when using covered calls is the risk of being assigned (i.e., having to sell their shares at the strike price). Mark addresses this head-on:
“What happens if you’re in the money? Don’t you get exercised? No, because just like today—I roll. I haven’t been exercised in years.”
By proactively managing his positions and rolling out contracts weekly, Mark not only avoids assignment but continues collecting income—week after week.
He also stresses the importance of keeping a risk-managed, rule-based system, rather than relying on predictions or emotions. He’s not trying to guess where MSTR will go next. Instead, he positions himself to profit regardless of the short-term direction.
Final Numbers and Key Takeaways
- Contracts sold: 12 covered calls
- Strike: $300 (April 11th expiration)
- Premium collected: ~$985 per contract
- Total income: $11,640
- Weekly goal: Met and exceeded
Even if MSTR rockets past $300, Mark is fine. His upside is capped due to the covered calls, but his base stock positions increase in value, and his downside is cushioned by the premiums he collected.
“If the stock goes to 303, or 503, or a million and three—I don’t care. I’ve made the maximum amount of juice I’m going to make.”
Want to Learn the Full System?
Mark Yegge’s “Cash Flow Machine” isn’t just about making a lucky trade. It’s a proven process designed to deliver 2–4% income per month—while protecting your capital and saving time. His system is built around:
- Rules-based investing
- Risk control
- Smart adjustments when trades go against you
- Simple weekly execution (less than an hour/week)
If you want to build a semi-passive income stream using covered calls, Mark’s got a roadmap that could help you earn $10K, $20K, or even $30K/month—just like he does.
Life Improving Tips
- Embrace Volatility as Opportunity
Rather than fearing volatile markets, see them as opportunities to generate higher premiums. The more erratic the stock price movements, the more lucrative the potential for covered calls. Stay disciplined, and remember, volatility means extra "juice" for option sellers. - Stick to Your Rules
One of the key principles Mark follows is to never let emotions drive his trading decisions. Having a solid, rules-based system will help you stay focused and calm when the market takes unexpected turns. This discipline is crucial for long-term success. - Roll to Protect Your Profits
When a stock price moves against you, rolling your position is a powerful tool. This allows you to lock in premium income while adjusting your strike prices to better reflect market conditions. It helps you avoid losing out or being assigned in a panic situation. - Don't Overextend Your Position
It’s tempting to increase your contracts when prices are high, but always ensure you have a solid risk-management strategy in place. Mark increased his position by only a modest amount, keeping his exposure balanced. - Focus on Income, Not Speculation
The goal of using covered calls is not to guess where a stock is headed but to create consistent income streams. Focus on generating reliable returns rather than speculating on short-term price movements.
FAQs
Q1: What is a covered call?
A covered call is an options strategy where you sell call options on stocks you already own. This allows you to generate income through the premium received from selling the calls while still holding the stock.
Q2: What happens if the stock price exceeds the strike price?
If the stock price exceeds the strike price, you may be assigned, which means you'll have to sell your stock at the strike price. However, since you’ve collected the premium, your risk is reduced, and your stock profit is capped.
Q3: How do you know when to roll a position?
You roll a position when the stock price moves significantly away from your strike price, and you want to adjust to avoid assignment or continue to profit. Rolling involves buying back your current options and selling new ones at a different strike price or expiration.
Q4: Can I use the covered call strategy with any stock?
While you can technically use a covered call on any stock you own, it’s best to choose stocks with high liquidity and consistent price movement. A stock like MicroStrategy (MSTR) provides the necessary volatility for profitable options trading.
Q5: How much time should I dedicate to managing covered calls?
The great thing about the covered call strategy is that it doesn’t require constant monitoring. Mark Yegge’s strategy involves spending less than an hour per week managing positions, making it suitable for those with limited time.
Call To Action
Ready to start earning passive income with covered calls?
If you’re tired of the ups and downs of traditional investing and want a strategy that works even in volatile markets, it’s time to learn how to generate consistent income through covered calls. Sign up for Mark Yegge’s “Cash Flow Machine” system today and get started on your path to financial freedom.
Click here to learn more and start your journey toward financial independence!
Conclusion
Mark Yegge’s success with covered calls, even in a volatile market, proves that with the right system, discipline, and strategy, you can generate a steady stream of income without needing to predict market movements. By following the rules, managing your risk smartly, and using Mark’s simple yet effective weekly process, you can create a reliable income stream that works for you—whether the market is up or down.
