GET RICH with SMART Covered Calls for LASTING Passive Income

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Covered calls are one of the most powerful yet misunderstood tools in the stock market. In this breakdown of Mark Yegge's video, "Get Rich with SMART Covered Calls for LASTING Passive Income," we explore how adopting a long-term mindset with covered calls can generate consistent income—even when stock prices decline.

The Problem with Short-Term Thinking in Options

Most traders enter the stock market with hopes of fast gains, often driven by price movements and hype. But what happens when the stock doesn’t perform as expected? Should you exit, go to cash, or stick to the strategy?

Mark Yegge emphasizes a different approach: covered calls should be seen as a long-term passive income strategy, not a short-term trading trick.

He recently shared this strategy with his mastermind group and brought it to the public to demonstrate why patience pays off—literally.

The Strategy Setup: Focus on the Juice

Covered calls involve two key components:

The Base Position – owning the stock (or a synthetic equivalent)
The Call Option Sold – the premium collected from selling a call

The portion of the premium we care about is the extrinsic value or what Mark calls "the juice." This is the part that decays over time and turns into profit.

Scenario Setup:

Stock bought at $200
Sell at-the-money calls for $4 every week
Collect $200/week over 50 weeks = $10,000 annually

Now assume the stock declines by $8/week. You only collect $4, so your account technically drops $4 per week per share. That sounds rough—until you take a long-term perspective.

Case Study: Apple (AAPL) in a Bearish Year

Mark used Apple stock over a one-year bearish period to show how collecting the juice can outperform even when the stock declines.

Starting stock price: $172.34
Ending stock price (after 52 weeks): $156.81
Average weekly juice collected: $2.23/share
Total collected: ~$116,000 on 1,000 shares

Despite the stock being down from its entry point, the juice generated over $100,000 in income, proving the power of staying in the game and treating the stock as a rental property rather than a quick flip.

"Would you sell your rental property just because Zillow says it dropped $10k in value? Of course not. You care about the rent. Same with stocks and options."

Comparing the Alternatives

Yegge walks us through three potential responses to a declining stock:

Stay in the trade – trust the system, collect the juice
Go to cash – if your indicators tell you to exit
Sell deep in-the-money calls – collect less juice but gain more protection

Going to Cash:

While emotionally appealing, going to cash removes the ability to earn weekly income. Even worse, you have to time your re-entry perfectly—something most traders struggle with.

Deep ITM Calls:

This is a middle-ground strategy. You sacrifice premium size but gain protection against market drops.

Why Long-Term Covered Calls Work

You Don’t Need the Stock to Rise – You profit from time decay, not just price appreciation.
You Mitigate Risk – Even if the stock declines, you keep the premium.
You Build Predictable Income – Think of your stocks like rental properties producing cash flow.
You Eliminate Emotion – Pre-defined strategies replace panic and guesswork.

Call to Action: Build Your Own Cash Flow Machine

If you're tired of emotional trades, random stock picks, or relying on financial advisors, it's time to put the power back in your hands.

Mark Yegge's Cash Flow Machine Elite Course teaches you how to generate 2–4% per month using covered calls on institutional-grade stocks. With just 20 minutes a week, you can build a consistent income stream without gambling on the market.

🔗 Start today at cashflowmachine.io

Plus, don’t forget to subscribe to Mark’s YouTube channel for weekly updates, real trade breakdowns, and high-probability setups.

Get started today

Final Thoughts: What Should You Do?

If you’re a trader or investor who wants to build real passive income, Mark Yegge's advice is clear:

Decide your pain tolerance ahead of time using "what if" scenarios
Create a rules-based trading plan that includes whether and when to go to cash
Consider using deep ITM calls when markets get shaky
Always focus on collecting the juice, not capital appreciation

When you adopt this income-focused mindset, short-term volatility becomes irrelevant. You stop hoping and start engineering predictable cash flow.

GET RICH with SMART Covered Calls for LASTING Passive Income

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