MicroStrategy Stock Trade: How I Made $6K in a Short Week

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The stock market is full of opportunities, and knowing how to time your trades can make a huge difference in your profits. This week, I capitalized on a well-planned MicroStrategy (MSTR) trade to generate a solid $6,300 in just a few days. If you’ve been following my trading journey, you know that my strategy revolves around collecting the juice—the extrinsic value in options trading. In this blog, I’ll break down my latest trade, explain why I waited out the juice, and share key takeaways for traders looking to maximize profits.

Breaking Down the Trade

Stock Movement & Timing

This week, MSTR surged by $18, then settled around $340. This fluctuation created a prime opportunity to roll my covered calls at the perfect moment. With just two hours left before expiration, the stock was hovering around $340, and my short calls were still holding an extrinsic value of about $2.11 per share.

Why Wait for the Juice?

Options traders often overlook the final hours before expiration, but this is where the most juice is extracted. As expiration neared, my short $340 calls still had extrinsic value left, despite being near the strike price. Instead of rolling early, I held onto my position until the very last moments, ensuring I got the maximum time decay benefit.

Executing the Trade: Rolling to the Next Week

As expiration approached, I decided to roll my position up to the $350 strike price for the next cycle. This adjustment secured an additional $665 per contract, meaning I collected over $6,300 in premiums for a short week (since Monday was a market holiday).

Here’s a summary of my trade execution:

Previous Position: Sold 9 contracts at $340 strike ($1,465 per contract premium collected)
Buyback Cost: $221 per contract to close the position
New Position: Sold 9 contracts at $350 strike ($665 per contract premium collected)
Total Income for the Week: $6,300

By rolling higher, I gave myself an additional $10 of upside potential while still collecting a meaningful premium.

Lessons Learned & Key Takeaways

Timing is Everything

Waiting until the last hour of expiration allowed me to keep most of the juice and minimize buyback costs. Many traders roll too early, leaving money on the table.

Strike Selection Matters

Rolling from $340 to $350 provided a balance between potential upside and premium income. If I had chosen a higher strike, I’d get less juice but more upside potential.

Short Weeks Still Pay

Despite a market holiday reducing the trading week, this trade still generated a significant return, showing that even shortened cycles can be profitable.

Patience Pays Off

Resisting the urge to buy back early resulted in keeping every last dollar of extrinsic value. If I had acted sooner, I would have left money on the table.

Life-Improving Tips for Traders

Develop a Clear Trading Plan

Having a structured plan ensures you stay disciplined and avoid emotional decisions. Set clear entry, exit, and adjustment rules to optimize performance.

Master Time Decay (Theta)

Understanding how options lose value as expiration approaches can help you capture maximum premium income. The last few hours before expiration are crucial.

Maintain a Healthy Risk-Reward Balance

Don’t just focus on premium collection—ensure you have a solid risk management strategy to protect against large stock moves.

Be Patient & Let the Market Come to You

Instead of chasing trades, wait for the right setup. Sometimes, the best move is doing nothing until the market presents an ideal opportunity.

FAQs About My Trading Strategy

Q1: Why didn’t you roll earlier in the week?

Rolling earlier would have cost me more in buyback fees because the option still had extrinsic value. By waiting, I ensured the juice decayed completely before rolling.

Q2: What if the stock had dropped instead of staying near $340?

If MSTR had dropped significantly, I would still keep all the juice from the initial trade, but I’d consider rolling lower to maintain protection.

Q3: How do you decide which strike price to roll to?

I typically roll $10 higher each week to give the stock room to move while still collecting a meaningful premium.

Q4: Can this strategy work for stocks other than MSTR?

Yes! The cash flow machine strategy works with any stock that has high options premiums and good liquidity. Tesla (TSLA), Nvidia (NVDA), and other volatile stocks work well.

Call to Action

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Conclusion: The Power of Smart Option Selling

This week’s $6,300 gain in a short trading cycle highlights the effectiveness of selling covered calls at the right time. By carefully managing my rolls and waiting for maximum juice decay, I optimized my profits while reducing risk. Whether you’re an experienced trader or just starting out, understanding options time decay and rolling strategies can significantly enhance your returns.

MicroStrategy Stock Trade: How I Made $6K in a Short Week

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