How to Make $6,000 in a Day with Trade Adjustments: A Real-Life Strategy with MicroStrategy (MSTR)

cashflow cashflow machine cashflowmachine coveredcall coveredcalls elite financialfreedom financialstrategy investing investmenttips lowriskincome makemoney mark yegge marketinsights mstr optionstrading passiveincome passiveinvesting regularincome riskmanagement stockmarket stocks trade like a pro tradingstrategy wealthbuilding

Investing in the stock market can be lucrative if approached with strategic planning and adaptability. In this blog, we’ll walk you through a practical trading example using MicroStrategy (MSTR) options trading as shared by Mark Yegge, a seasoned trader. The focus is on trade adjustments, rolling contracts, and maximizing "juice" (extrinsic value) to generate consistent income. Let's dive into the step-by-step breakdown of his approach.

What Are Trade Adjustments?

Trade adjustments involve modifying your positions in response to market movements. This strategy allows you to manage risk, lock in profits, and optimize future returns. In this case, Mark Yegge demonstrates how to use rolling options to generate $6,000 in income in a single day.

Mark Yegge’s Trading Strategy with MSTR

Setting the Stage

Underlying Asset: MicroStrategy (MSTR), a volatile stock linked closely to Bitcoin’s performance.
Starting Position: Holding long-term call options (June 2025, $250 strike).
Short Calls: Selling weekly calls to generate extrinsic value or "juice."

Step-by-Step Trade Adjustment

Day 1: Rolling Down

The stock dropped by $9, creating an opportunity to roll existing $400 calls down to $375 calls.
Result: Pocketed approximately $1,000 in credits while collecting $1,855 per contract in juice.

Day 2: Locking in Profits

After the stock dropped further, Mark Yegge rolled down his $375 calls to $370 calls for the next week (expiring December 13).
Outcome:

Collected $14.64 per contract, totaling $10,248 across seven contracts.
Locked in a profit of $6,500 from rolling this week’s calls.

Why This Works

Maximizing Extrinsic Value: By focusing on "juice" rather than stock price movements, Mark Yegge profits from time decay and volatility.
Rolling Weekly: Adjusting positions every Friday helps lock in profits and re-optimize for the following week.
Defensive Strategy: By rolling down in-the-money (ITM) calls, he maintains a buffer against potential stock rebounds.

Common Misconceptions about In-The-Money (ITM) Options

Mark Yegge addresses a frequent concern: Will ITM options get assigned automatically?

Assignment Timing: Assignments usually occur at expiration, not mid-week.
Protection: Holding long calls (e.g., June 2025, $250 strike) covers the short positions, mitigating risk.
Rolling Prevents Assignment: By rolling options weekly, you avoid assignment and continue generating income.

Life-Improving Tips

Understand the Math: Take time to calculate potential profits, extrinsic values, and risks.
Stay Consistent: Commit to weekly adjustments; small gains add up over time.
Learn from Experts: Follow experienced traders and practice their strategies on paper accounts before live trading.
Focus on Juice: Shift your mindset from worrying about stock price movements to capitalizing on extrinsic value.

FAQs

Q1: How much capital is required for this strategy?

Mark Yegge’s trades involve significant capital, but the principle of rolling weekly calls can be scaled to fit smaller accounts.

Q2: What if the stock price moves drastically?

The rolling strategy is flexible. If the stock rallies, adjust positions by rolling up; if it drops, roll down.

Q3: Is this strategy only for MicroStrategy?

No. This approach works for any stock or ETF with liquid options and sufficient volatility to generate premium.

Call to Action

Want to master options trading? Start by watching Mark Yegge’s video playlist on MicroStrategy. His hands-on explanations and real-time adjustments can help you understand the nuances of this lucrative strategy. Don’t forget to subscribe to his channel and hit the notification bell to stay updated!

Get started today

Conclusion

Mark Yegge’s trading strategy exemplifies how disciplined trade adjustments and a focus on extrinsic value can yield consistent profits. By rolling weekly options and leveraging market volatility, he demonstrates that generating significant income is achievable with the right approach. Whether you’re a beginner or an experienced trader, there’s plenty to learn and adapt from his techniques.

How to Make $6,000 in a Day with Trade Adjustments: A Real-Life Strategy with MicroStrategy (MSTR)

Insider Tips Newsletter

Join Our Free Trial