MicroStrategy (MSTR) is Rising – How I Locked in $13,700 in Weekly Income

cash flow cashflow cashflow machine covered calls earnings strategy financial freedom implied volatility investing mark yegge microstrategy mstr option premiums options trading passive income premium income retirement income risk management rolling options selling calls stock appreciation stock market stock options trading strategy weekly income

MicroStrategy (MSTR) has been bouncing around this week, and instead of just watching it move, I used options to generate $13,700 in premium income—what I call the juice.

In this blog, I’ll break down my trade step by step, explain why this strategy works, and show you how you can generate passive income like this every week—even if stocks move against you.

Why I’m Trading MSTR Right Now

Before jumping into the trade details, let’s look at the bigger picture:

📈 MicroStrategy is climbing after recent pullbacks
💰 Options premiums (juice) are high, making it a great time to sell covered calls
⚠ Earnings are coming up, so I need to be cautious with my positioning
🎯 My goal isn’t just stock appreciation—it’s weekly income from options premiums

When a stock has high implied volatility (IV), option premiums inflate, making it a great time to sell calls. That’s exactly what I did here.

My MicroStrategy Trade Setup for This Week

Step 1: Selling Covered Calls for Income

Last week, I sold eight covered calls at the $372.50 strike price. That trade made me about $13,000 in premium income.

Since MicroStrategy was trading around $352 today, I saw another opportunity to sell more calls and collect even more premium.

Step 2: Choosing the Right Strike Price

Instead of selling at the money (ATM) calls, I sold calls at $360.

Why?

✔ This gives me $8-$10 of potential upside
✔ If MSTR rises, I profit until it reaches my strike price
✔ If MSTR stays below $360, I keep all the premium

I want to maximize my income while leaving room for potential gains.

Step 3: Executing the Trade

Here’s the exact trade I placed:

📌 Stock price: ~$352
📌 Strike price: $360
📌 Expiration: February 7th (8 days away)
📌 Premium collected: $1,565 per contract
📌 Total contracts sold: 9
📌 Total income (juice) collected: $13,700

This means that as long as MSTR stays below $360, I keep all $13,700—that’s my weekly paycheck from this trade.

How This Strategy Works (Even When MSTR Moves Against Me)

The beauty of selling covered calls is that I can profit in multiple ways:

📉 If MSTR Drops:

I keep the $13,700 in premium as pure profit.
I can sell more calls next week for more income.
My risk is reduced because I got paid upfront.

📈 If MSTR Rises:

I profit on stock appreciation up to $360.
If MSTR moves above $360, I can roll my calls up for more income.

💡 Key takeaway: This strategy works whether MSTR goes up, down, or sideways—I’m always collecting income.

How Covered Calls Create Passive Income

Many people think the only way to make money in the stock market is by buying low and selling high. That’s not true.

With covered calls, I get paid upfront every week or month—even if the stock does nothing.

Imagine having a rental property. You don’t care if the house’s value goes up or down each day—you care about collecting rent every month.

☑ Stocks = Your Asset
☑ Options Premium = Your Rent

With covered calls, I collect rent on my stocks over and over again.

Why I Adjust My Covered Call Strategy Before Earnings

MSTR has earnings coming up soon, so I need to adjust my risk.

🔹 Before earnings: I’m selling at-the-money (ATM) or slightly in-the-money (ITM) calls to collect maximum premium and protect my downside.
🔹 Just before earnings: I’ll roll deeper in the money (DITM) to further reduce risk in case of a big drop.

Earnings can be unpredictable, so I never hold aggressive call positions through earnings without adjusting first.

Lessons From This Trade

💡 Sell Covered Calls When Volatility Is High
MSTR had high implied volatility (IV), which inflated options premiums—making it the perfect time to sell calls.

💡 Always Leave Room for Upside
By selling at $360, I allowed MSTR to rise before capping my profits—giving me two ways to win (income + stock appreciation).

💡 Be Cautious Before Earnings
Big stock moves can wipe out gains. I always roll my calls deeper in the money before earnings for protection.

💡 It’s About Income, Not Stock Direction
Most traders focus on predicting stock moves. I focus on generating consistent income, no matter what happens.

FAQs: Understanding Covered Calls & Juice Trading

🔹 Q: What happens if MSTR drops below $350?
✅ I still keep the $13,700 in premium, reducing my overall loss.

🔹 Q: Why sell calls instead of just holding the stock?
✅ Holding stock doesn’t generate weekly income. Covered calls allow me to make money even if the stock stays flat.

🔹 Q: What if MSTR jumps past $360?
✅ I can either roll my calls up to a higher strike price or let my shares get called away for a profit.

Call to Action

Want to master covered calls and create passive income like this?
📩 Join the Insider Tips Newsletter: Get exclusive trading insights and strategies.
🎥 Watch more videos: Explore Mark’s covered call trading playlist for in-depth tutorials.

Start trading smarter and earning consistent income today! 🚀

Get started today

Conclusion

By selling covered calls at strategic strike prices, I locked in $13,700 in weekly income—no matter what MSTR does.

Here’s the big picture:

✔ Selling covered calls creates passive income—just like collecting rent.
✔ I always adjust before earnings to reduce risk.
✔ I win whether MSTR goes up, down, or sideways.

💡 This is how I generate predictable cash flow from the stock market every single week.

MicroStrategy (MSTR) is Rising – How I Locked in $13,700 in Weekly Income

Insider Tips Newsletter

Join Our Free Trial