Profiting from Declining Stocks: How I Made $7,500 with the Juicy Put Strategy

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In a market dominated by fear, red candles, and recession talk, most investors panic. But not Mark Yegge.

While the broader market stumbles, Mark’s Juicy Put Strategy allows him to profit — even when stocks fall. In this case, he shares how a trade on Valero (VLO) earned him nearly $7,500 in just four days. Let’s dive into how this works and why you might consider implementing it too.

The Market Outlook: Red Flags and Recessionary Signals

Mark opens by painting a macro picture — one that hints at a bear market:

Recession-like signs are flashing
The Fed continues to prop up weak economic momentum with monetary support
Sectors like oil refiners are among the worst performers

One example? Valero Energy (VLO). Earnings are shrinking year over year, and technical indicators are breaking down — all signaling further downside.

Technical Setup on Valero

Mark identifies a classic “dreaded H” pattern, which often signals continued selling:

Weekly chart shows a strong downtrend and death cross
Valero has broken below its 200-day and 50-day moving averages
Earnings are projected to decline further in 2024 and 2025
The stock appears headed toward $97–99 based on support levels

The Juicy Put Strategy: Explained

Mark's approach here is simple but powerful. He uses a variation of his Cash Flow Machine™ called the Juicy Put Strategy — a bearish income-generating method that profits when stocks drop.

Here's how it works:

Buy a Long Put (LEAPS)

Strike: $155
Expiration: December (242 days away)
Delta: ~81% — meaning the put gains $0.81 for every $1 drop in stock price
Cost: $48.90 per share (or $4,890 per contract)

Sell a Short Put for Income

Strike: $110
Expiration: 4 days
Premium collected: $1.89 per share
Weekly return: ~3.9%

Repeat this income-selling process week after week, and you’ve got a strategy that could yield 200%+ annually, assuming consistent results.

Why It Works (Even If You're Not Predicting)

Mark emphasizes that he’s not predicting. He’s following the trend and using probabilities, not emotions.

He doesn’t know if VLO will go up or down — but the structure of the trade means he can profit either way, as long as the trend stays intact.

Life-Improving Lessons From This Trade

You Can Profit When Stocks Drop
Most investors lose during downturns — but with put-based strategies, you can win while others worry.
Cash Flow Matters More Than Capital Gains
Generating weekly income provides peace of mind and predictability — something buy-and-hold strategies can't offer in bear markets.
You Don’t Have to Predict — Just Prepare
Mark uses technical patterns and systems to identify trades and uses discipline to execute them.
Know When to Go Fishing
As Jesse Livermore once said: “There’s a time to go long, a time to go short, and a time to go fishing.” Sometimes, cash is a position.

FAQs

Q: What if the stock reverses and goes up?
A: Since the long put is deeply in the money and sold puts are short-term, Mark can manage risk by rolling or adjusting positions.

Q: Is this strategy only for advanced traders?
A: It’s teachable! If you understand LEAPS, basic options, and delta, you can use this system with practice.

Q: How much capital is needed?
A: Each put contract controls 100 shares. With a $4,890 cost per contract, you'll need ~$5,000 minimum per position — but scaling is flexible.

Call to Action

Ready to learn how to earn consistent weekly income even when markets crash?

Visit CashFlowMachine.io
Join the Insider Tips Newsletter for expert trade alerts
Subscribe to Mark’s YouTube Channel for more real-time trade examples

Get started today

Conclusion

While most traders panic when markets fall, the Juicy Put Strategy offers a refreshing alternative — one rooted in logic, rules, and consistent income.

Profiting from Declining Stocks: How I Made $7,500 with the Juicy Put Strategy

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