Rolling to Protect: A Smart Pre-Earnings Move with VLO Juicy Puts

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VLO - ROLLING TO PROTECT Before Earnings Tomorrow

Earnings season can feel like walking a tightrope — exciting, but risky if you're not prepared. In his latest video, Mark Yegge shares a textbook example of how to protect your capital before earnings using his favorite strategy: the Juicy Put. This trade isn’t just about defense — it’s also about collecting income along the way.

Let’s explore how Mark manages risk while setting up for consistent returns with Valero Energy (VLO).

The Setup: Juicy Puts and the Earnings Threat

Mark has been holding a juicy put position on VLO. Originally, he sold the $110 strike puts, and as the stock price climbed to $114, those puts moved out of the money. That’s good news — it means he’s collected most of the extrinsic value (aka “the juice”) from the trade.

But here’s the twist: VLO reports earnings the next day, and earnings can trigger volatile moves — up or down. In fact, the implied move from options pricing was about $2.50, which could push the stock significantly in either direction.

That’s where Mark’s plan kicks in.

The Strategy: Roll to a Safer Strike — and Get Paid!

Rather than sit on the $110 puts and risk an unfavorable move, Mark chooses to roll his position out by one week and up to the $116 strike — closer to the current stock price, but still in the money for protection.

Step-by-Step Breakdown:

Buy back the expiring $110 puts

Minimal juice left (~70 cents), meaning the time premium has mostly been collected.

Sell new $116 puts expiring next week

Midpoint pricing gives about $3.27 in premium per contract — more juice!
Provides a $5 buffer against downside volatility.

“This gives me protection and income going into earnings,” Mark explains. “I’m collecting $3.24 in juice while getting a couple of bucks in intrinsic value protection.”

Why Roll Before Earnings?

Earnings reports are predictably unpredictable. They can spark big moves — and if you’re short options, that volatility can work for or against you.

Mark’s mindset is clear:

Control what you can: the setup before earnings
Don’t chase expiration-day profits if it means exposing yourself to risk
Protect capital first, collect juice second

This approach is proactive, not reactive, and it's how long-term income investors survive wild earnings swings.

Life-Improving Takeaways

Earnings Require Respect
Never treat earnings like just another day. Price swings can be brutal. Plan ahead.
Juice Comes First, But Protection Matters
Income is great, but not at the cost of massive drawdowns. Use in-the-money positions to cushion the risk.
Don’t Be Greedy with Expiring Options
It’s tempting to squeeze the last few cents out of a contract — but protecting your portfolio is the smarter play.
Use Weekly Rolling as a Discipline
Mark rolls positions weekly, like clockwork. That habit alone builds consistent cash flow and keeps risks in check.

FAQs

Q: What is a Juicy Put strategy?
A: It's Mark’s term for a bear put debit spread focused on maximizing extrinsic value income while managing downside risk.

Q: Why roll before earnings?
A: Rolling helps avoid large losses if the stock moves sharply against you. It resets your strike, collects new premium, and stays in control.

Q: How is in-the-money protection useful?
A: If a put is in the money, its intrinsic value moves opposite the stock — providing a built-in hedge during turbulent times.

Call to Action

If you're tired of guessing stock directions and want a proven system that generates weekly cash flow, then…

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Conclusion

Trading through earnings isn’t about luck — it’s about preparation. Mark’s VLO roll illustrates how strategic adjustments can protect capital, capture new income, and stay ahead of volatility. It’s a masterclass in turning risk into opportunity.

Rolling to Protect: A Smart Pre-Earnings Move with VLO Juicy Puts

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