How I Made $12,500 from MicroStrategy (MSTR) While the Market Dropped

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In today’s volatile market, where stocks are reacting to news about AI advancements and economic shifts, traders need to adapt fast. Mark Yegge shares how he leveraged MicroStrategy’s price movement to generate $12,500 in income using his covered call strategy—despite the stock declining.

Breaking Down the MicroStrategy Trade

MicroStrategy (MSTR) saw a sharp decline in the market, dropping as much as $32 per share from last week's strike price of $372.50 down to $340. While many traders might panic, Mark saw an opportunity.

Here’s what happened:

Last Week’s Position:

Sold 8 contracts of MSTR 372.50 calls.
Generated $13,000 in premium income.

This Week’s Move:

As MSTR declined, Mark bought back his contracts at $4.75.
This secured $12,500 in profit within a few days.
Now, he’s waiting for a price bounce before placing his next trade.

Why This Strategy Works (Even in a Falling Market)

Most traders rely on stock price movement for profits. Mark takes a different approach—he focuses on the juice (extrinsic value or time premium in options).

Here’s why this works:

✅ Income Regardless of Direction: Whether the stock goes up or down, Mark collects the juice. If the stock had gone up, he would have simply held the position until expiration.

✅ Rolling Opportunities: Buying back contracts at a lower price lets him re-enter trades at better positions, increasing income potential.

✅ Risk Management: Selling in-the-money options provides downside protection, allowing him to lock in profits even during declines.

What Caused the Market Sell-Off?

The stock market reacted negatively to news from DeepSeek, a Chinese AI company that announced a ChatGPT competitor at a fraction of the cost. Investors worried that this breakthrough could threaten big tech players like Nvidia and Microsoft, leading to a broad sell-off.

Rather than seeing a red day as a loss, Mark used the dip as an opportunity to reposition and collect more premium.

Life-Improving Tips from This Strategy

Stay Calm in Market Volatility: Instead of fearing market drops, learn strategies to profit from them.
Always Have a Plan: A solid trading system prevents emotional decisions and maximizes opportunities.
Leverage Passive Income: Generating consistent income while spending less than an hour a week on trading frees up time for travel and personal growth.

Frequently Asked Questions (FAQs)

Q: How did Mark make money if MicroStrategy dropped?
A: The key was selling covered calls with high premium (juice). When MSTR dropped, he bought back the contracts for a lower price, locking in profit.

Q: Why didn’t he wait until expiration?
A: Since he had already collected most of the premium, Mark chose to close the trade early and wait for a bounce to sell new contracts at a better price.

Q: Is this strategy suitable for beginners?
A: Yes! While options trading requires learning, covered calls are one of the safest ways to generate income from stocks you already own.

Q: What if the stock keeps dropping?
A: Mark sells in-the-money options, providing downside protection while collecting premium to offset losses.

Call to Action

Want to master the Cash Flow Machine System and start generating 2-4% monthly returns with minimal risk?
📩 Join the Insider Tips Newsletter: Get breaking market insights and exclusive strategies.
🎥 Watch more videos: Check out Mark’s covered call playlist for in-depth tutorials.

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Conclusion

This trade on MicroStrategy shows why covered calls can be a powerful tool for consistent income generation, even in a declining market. By focusing on premium collection rather than stock price movement, traders can create semi-passive income and avoid market stress.

The key takeaways:
✔ Sell covered calls on quality stocks.
✔ Collect the juice and protect downside risk.
✔ Adjust positions strategically when opportunities arise.

How I Made $12,500 from MicroStrategy (MSTR) While the Market Dropped

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