SpaceX Covered Calls: $9,842 Profit and Risk Lessons

SpaceX continues to capture attention through reusable rocket technology, Starlink satellite connectivity, and its potential to challenge established telecommunications businesses. But for investors, enthusiasm about a company's future is only part of the equation. Managing the position when the stock moves against you can be just as important.

In this trade review, Mark Yegge walks through how he managed a volatile SpaceX position using covered calls, option adjustments, and clearly defined technical exit levels. Despite a substantial decline in the underlying stock during the trade, Mark reports a $9,842 net profit over approximately three months. His latest chart update also explains why he exited and why he is waiting before considering another entry.

Key Takeaways

SpaceX's Expansion: Why Mark Remains Interested

Mark's interest in SpaceX extends beyond a single stock trade. He points to the company's increasingly frequent rocket launches as evidence of how reusable launch technology has transformed the economics and accessibility of space operations.

He is particularly enthusiastic about Starlink and its potential to expand satellite-based communications. In his discussion, Mark highlights a spectrum development that he believes could improve connectivity inside buildings, an important challenge for direct-to-phone satellite services.

Mark also describes a sharp selloff in major telecommunications companies, including Verizon, AT&T, and T-Mobile, following the announcement. In his view, satellite connectivity could eventually introduce meaningful competition into an industry traditionally dependent on terrestrial cellular networks.

He sees additional possibilities involving artificial intelligence, semiconductor development, and potential cooperation with Tesla. However, ideas such as a future SpaceX–Tesla merger remain speculative, and their investment implications are uncertain.

Inside the SpaceX Covered-Call Trade

Mark explains that he established his position shortly after the stock began trading publicly, according to his account. He purchased shares at approximately $220 and initially sold calls with a $170 strike price, placing those options well in the money.

His objective was not simply to profit from a rising stock. Instead, he wanted to generate option premium, which he frequently calls "juice," while managing the risk of holding the underlying shares.

As the stock declined, Mark adjusted the position through a series of option transactions. These included buying back existing calls and rolling into different contracts when he believed the adjustment made sense.

Selling covered calls can provide income that helps offset some stock losses. However, the premium does not eliminate downside exposure, and selling calls also limits the potential upside if the shares rally sharply.

Over approximately three months, Mark continued collecting and managing premium while maintaining a relatively modest position, generally involving five to seven option contracts.

The Trade Results: $9,842 in Net Profit

Using the Trade Ledger feature inside Cash Flow IQ, Mark reviewed the complete trading history, including collected premium, option buybacks, and rolling adjustments.

The $13,382 figure represents premium collected through selling calls. After accounting for costs associated with closing and rolling options, Mark reports that the overall trade produced $9,842 in net profit.

He characterizes the outcome as a roughly 6.8%–7% return over three months, despite the significant weakness in the underlying stock during that period.

The position ultimately closed when shares were called away against his $160-strike covered calls. With the assignment completed, Mark was left in cash rather than continuing to hold the shares.

Why Mark Exited Instead of Holding On

Although the assignment closed the position, Mark's willingness to exit was also influenced by the technical chart.

He had been monitoring a developing bull flag, a pattern that can sometimes lead to an upside continuation when buyers regain control. The stock attempted to break higher but failed to establish sufficient momentum.

As the breakout weakened, shares began retreating toward the eight-day moving average. Mark had also drawn an upward-sloping support line around important recent price levels.

When the stock moved below that support line, the setup no longer met his preferred conditions. Instead of forcing the position to remain open, he was comfortable allowing the covered calls to be assigned.

A Potential Reentry Level Near $171.41

During the initial review, Cash Flow IQ's pattern-recognition analysis identified approximately $171.41 as a level Mark wanted to monitor for a possible future entry.

That did not mean the price was an automatic buy signal. Mark wanted additional confirmation from the chart before committing capital again.

His approach reflects an important distinction: a trader can remain optimistic about a company while becoming defensive about the stock's immediate price action.

October 15 Update: SpaceX Breaks Below Its 50-Day Moving Average

Two days after recording his original trade review, Mark returned with an important technical update dated October 15, 2026.

The stock had weakened further, trading near $142–$143 during his updated commentary. More importantly, it had gapped below its 50-day moving average and breached an additional support level.

These developments increased his concern about near-term risk. He also noted that the stock's internal condition indicator had turned yellow, providing another warning as broader selling pressure affected the market.

Although the larger chart structure still appeared to retain an upward channel, Mark believed the immediate technical conditions were too uncertain to justify trying to identify the exact bottom.

Could the Stock Rebound Toward $147?

Mark suggested that a short-term rebound could potentially bring the stock back toward the $147 area. However, he did not know whether such a move would occur or how sustainable it might be.

A rebound toward a previously broken level would not necessarily establish a new bullish trend. For now, he preferred to monitor the chart rather than rush back into the position.

Potential Catalysts: Tesla, Starlink, and Market Sentiment

Beyond the technical setup, Mark is watching company developments that could influence sentiment around SpaceX.

His October 15 commentary referenced a planned Tesla Roadster unveiling and market speculation about possible announcements involving Tesla and SpaceX.

He also remains interested in Starlink's connectivity expansion and SpaceX's broader technology ambitions. These developments could affect investor expectations, but rumors and potential announcements should not be confused with confirmed business outcomes.

For Mark, the decisive factor remains how the stock responds. A promising corporate story alone is not enough to justify an entry when price action and broader market conditions are deteriorating.

What Traders Should Watch Next

The Bottom Line: Protect the Position, Then Look for Opportunity

Mark Yegge's SpaceX trade provides a practical illustration of covered-call income, active position management, and disciplined exits.

The reported $9,842 profit was achieved through multiple transactions, including collecting call premium and making adjustments as the underlying shares declined. The result was not simply a successful prediction about where the stock would trade next.

More importantly, Mark did not allow his favorable long-term view of SpaceX to override his near-term trading rules. When the technical picture deteriorated, he accepted the exit and returned to cash.

He remains interested in SpaceX, but the October 15 breakdown reinforces his preference for patience. For investors using covered calls, the central lesson is to manage downside exposure, respect changing market conditions, and wait for setups that fit a defined trading plan.