How In-the-Money Covered Calls on MSTR Protected $16,000 in One Day

conservative trading method covered call profits downside protection options how to trade options in-the-money covered call itm call strategy itm vs otm explained mark yegge mstr trade microstrategy options strategy mstr covered calls option income strategy option selling strategy options for weekly income options trade example options trading for income premium income mstr risk management trading safe options strategy selling itm calls trading the juice

When the market turns against you, will your strategy hold up?

For veteran options trader Mark Yegge, the answer is a confident “yes”—thanks to his reliable in-the-money (ITM) covered call strategy. In this update, Mark walks us through how his ITM position on MicroStrategy (MSTR) saved him from a sharp 6% drop and helped lock in $16,000 in profits.

Let’s dive into the breakdown, the benefits of the strategy, and how you can use this technique to protect capital and generate income—even when stocks fall.

MSTR: The Breakdown

Mark’s position centered around a short 440 covered call:

🔹 MSTR rose to: ~$460
🔹 Then corrected hard to: ~$423
🔹 Current Position: Short 440s
🔹 Profit on Trade: $16,000+
🔹 Status: Option expires next week

The 440s were solidly in the money when opened, and that protection kicked in big-time during Friday’s market pullback. While others may have been caught off-guard, Mark had downside protection baked in.

Why In-the-Money (ITM) Works

According to Mark:

“You should be safe with your money. One of the ways to do that is to sell in-the-money calls.”

This approach offers three critical advantages:

Built-in Downside Protection

When the stock drops, the intrinsic value of the short call offsets losses in the base stock. It’s like a built-in hedge.

Consistent Premium (The Juice)

Even with the correction, Mark kept the juice—the extrinsic value that fuels consistent income in his trades.

Mindset of Safety, Not Speculation

Forget chasing breakouts and hyped headlines about Bitcoin or “God candles.” The goal is steady, reliable returns, not high-risk bets.

What’s Next?

Mark plans to:

Buy back the short 440s early next week (Mon/Tue)
Sell a lower strike covered call with remaining time value
Continue compounding the income from the Juice

He’s not chasing tops or guessing bottoms—just managing positions for income.

Life-Improving Lessons from This Trade

This isn’t just about one stock or one trade—it’s about mastering a repeatable, low-risk income approach. Here are key takeaways:

Safety Is Income

ITM calls reduce your risk exposure and help smooth out market swings.

The Juice Is the Focus

Mark’s consistent income comes from option premiums—not stock price movement.

No Need to Predict

You don’t need to know where MSTR or Bitcoin are headed. Just collect the juice and manage risk.

FAQs

Q: Why not use out-of-the-money calls to make more if the stock runs?
A: You can, but you’ll sacrifice the downside protection. Mark prefers consistent results over unpredictable upside.

Q: What if the stock rises and you miss out?
A: That’s the trade-off. But even if MSTR had kept rising, Mark would’ve collected the full juice and reallocated capital strategically.

Q: Is this approach right for small accounts?
A: Yes. It’s scalable—start with fewer contracts and focus on cash-secured ITM calls or synthetic setups.

Call to Action

Want to learn how to build consistent, protected income in any market?

Join Mark Yegge at the Wealth Accelerator Live Event in Clearwater, Florida
September 26–28, 2025
3 days of hands-on sessions, strategy walkthroughs, and live coaching

Reserve your early bird ticket now before spots sell out!

Get your Wealth Accelerator ticket

Conclusion

This trade is a textbook example of how ITM covered calls can not only generate weekly income but also protect your capital when the market turns sharply. While many traders were likely panicking on Friday’s 6% MSTR drop, Mark was up $16,000—all because he focused on risk management and the juice.

“It’s not that bad to be in the money and be protected.”

How In-the-Money Covered Calls on MSTR Protected $16,000 in One Day

Insider Tips Newsletter

Join Our Free Trial