Key Takeaways

Why Didn't the Share Unlock Trigger Heavy Selling?

One of the major concerns surrounding the trade was the release of previously restricted shares. The expectation from some traders was straightforward: once insiders and employees became free to sell, a large amount of supply could hit the market and push the stock significantly lower.

Mark had a different view. He believed much of that concern was already priced into the stock.

His reasoning focuses on the psychology of long-time shareholders. Someone who had spent years working at the company and waiting for their equity to become liquid might look at a stock that had previously traded above $200 and hesitate to sell after watching it fall toward the low-$100 area.

According to Mark, some shareholders may choose to wait, while others might sell their holdings gradually at different price levels rather than liquidating everything immediately. At the same time, buyers willing to accumulate shares at lower prices can absorb some of that selling pressure.

The Long-Term Story Still Matters to Mark

Mark also emphasized why he continues to view the company positively despite the volatility in the stock.

He pointed to the company's technological achievements, including reusable rockets, landing boosters on ocean platforms, Starlink, Starship, and the ability to catch a returning booster as examples of capabilities that once appeared highly ambitious.

He also reviewed the earnings figures shown in his platform. According to the numbers he discussed, the company lost $0.13 per share in 2023, $0.04 in 2024, and $0.35 in 2025, while expectations for 2026 showed a loss of approximately $0.07 per share.

Mark does not treat those projections as guarantees. His broader argument is that the company's technological progress is an important part of why he remains willing to manage the position rather than abandon it simply because the share price experienced a major decline.

From Defense to Offense

For roughly the previous month and a half, Mark had been demonstrating what he describes as the defensive side of covered call trading. As the underlying stock moved lower, he used in-the-money calls to collect premium and create additional downside protection.

In this update, however, his market timing indicator was green. In Mark's framework, a green market suggests that broader momentum probabilities favor the upside.

He views the overall market as an important tailwind or headwind for an individual stock. With both the market indicator and the SpaceX position showing strength that day, Mark decided he could afford to become somewhat more offensive.

That did not mean abandoning risk management. It meant moving his short call strike higher so the base position could participate in more upside while still producing option income.

The Existing Position: Six Long LEAPS and Five Short Calls

Mark's base position consisted of six long LEAPS contracts with a $75 strike and a January 15 expiration. Against that position, he had five short covered calls.

The short calls expiring that day were at the 115 strike. With the stock trading near $128 and expiration only hours away, those options were deep enough in the money that almost all of their remaining value was intrinsic.

Mark illustrated this by comparing the stock price with the strike price plus the option's market value. With the shares around $127.89, the option had only a small amount of remaining extrinsic value—what he repeatedly calls the "juice."

Because most of that juice had already decayed, Mark saw little reason to continue holding the expiring short call for the final few hours. It was time to buy it back and establish the next week's position.

Using Delta to Choose the Next Strike

Once Mark decided to roll the calls, the next question was where to place the new strike.

An at-the-money call around the current stock price offered substantially more premium. Moving farther out of the money reduced the immediate income but gave the underlying position additional room to appreciate.

Mark used delta as part of that decision. In his explanation, delta helped him think about the probability of the option finishing in the money by expiration. Around the current share price, the probability was close to 50%. As he moved the strike farther above the stock, that probability declined.

This created the central trade-off: collect more premium now, or accept less premium in exchange for greater upside potential.

Why Mark Chose the 130 Weekly Call

With the stock around $128 and the broader market indicator green, Mark ultimately chose the 130 strike for the following week's expiration.

That placed the short call slightly out of the money when the trade was entered. Mark described the setup as being close to his "balance point"—near the money, but with a small amount of upside room.

The 130 call was trading around $5.80 per share, or approximately $580 per contract. For Mark, that represented meaningful weekly option premium while still allowing the stock to move a couple of dollars higher before reaching the strike.

He also viewed that premium as a cushion. In his framework, if the stock declined by roughly the amount of premium collected, the option income could offset a similar decline in the base position over that period, although the actual trade outcome would still depend on how both sides of the position moved.

Executing the Roll

Mark used a roll order to close the expiring 115 calls and simultaneously establish the new 130 calls for the following week.

As he entered the trade, the bid-ask spread on the roll was relatively wide. Rather than demanding the exact midpoint, he was willing to give up a small amount to the market maker in an effort to obtain the fill.

After execution, the zero-day 115 calls were gone and the account showed five short 130 calls with seven days remaining to expiration.

What the Position Math Shows

After the roll, Mark exported the SpaceX trade history through his Cash Flow IQ software to review the combined results of the base position and covered calls.

At that point, the overall SpaceX position was showing a loss of approximately $3,962. Mark noted that in his previous update the loss had been closer to $7,000 or $8,000.

His point was not that covered calls had eliminated the loss. The underlying stock had experienced a very large decline. Instead, he argued that repeated option income had substantially changed the net result compared with simply holding the base position without managing it.

The software also showed approximately $40,000 of realized gains generated during the stock's decline, while the remaining open positions continued to fluctuate with the market.

"Squeezing the Juice" Instead of Predicting Every Move

Mark contrasts his approach with trying to identify a stock that will simply multiply in value and then hoping the prediction is correct.

His Cash Flow Machine philosophy starts with several factors: finding what he considers the right stock, trading it in the right market environment, entering at the right area of the chart, and then "squeezing the juice" through option premium.

When the trade is moving against him, he may sell calls deeper in the money to increase the defensive component. When conditions improve, he can move strikes higher to allow more participation in the upside.

The objective is not to eliminate risk. Mark repeatedly acknowledges that risk always remains. His goal is to use covered calls as an ongoing income and position-management tool instead of relying entirely on appreciation in the underlying security.

Why Lower-Volatility Stocks and ETFs Can Be Different

Mark also pointed out that SpaceX is an unusually volatile example. For investors who prefer less dramatic movement, he mentioned securities such as Apple, Nvidia, and broad ETFs such as SPY as examples of positions where covered calls may produce a different risk and income profile.

His broader point is that the income-trading concept does not depend on a stock constantly rising. Covered call premium can be collected when a stock moves up, down, or sideways, although every scenario carries its own risks and trade-offs.

What Traders Should Watch Next

Cash Flow IQ and the Trading Plan

Throughout the update, Mark used Cash Flow IQ, the AI-assisted covered call platform he uses with Cash Flow Machine students. The software displays market conditions, positions, realized results, open calls, cost basis information, and other trade-management data.

Mark's emphasis is on combining education with implementation: creating a defined trading plan, monitoring the entire position rather than one isolated option, and repeatedly evaluating whether the current strike still matches the market environment and the trader's objectives.

Save the Date: Wealth Accelerator Strategy Room

Mark also announced the next Wealth Accelerator Strategy Room, scheduled for October 30 through November 1 in Clearwater Beach, Florida.

He said the event will focus heavily on chart reading, recognizing stock patterns, AI and Cash Flow IQ, developing a trading plan, reviewing potential opportunities for the remainder of the year and beyond, and meeting other members of the community. Additional early-bird pricing information is expected separately.

The Bottom Line

Mark's SpaceX trade remains a live example of active covered call management rather than a simple buy-and-hold position.

During the decline, he used in-the-money calls to emphasize defense and collect premium. With his broader market indicator now green and the stock rebounding, he has moved the short strike from 115 to 130, accepting less immediate protection in exchange for additional upside room.

The central lesson is not that the stock must continue higher. Mark specifically says he does not know whether the long-term result will be good, bad, or ugly. His focus is on managing what happens next—using market direction, delta, strike selection, and weekly option premium to continually adjust the trade rather than relying on a single prediction.

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