Why Is MicroStrategy Dropping While Bitcoin Is Booming?

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Despite Bitcoin recently hitting an all-time high, MicroStrategy (MSTR)—a company heavily tied to Bitcoin's price action—has been experiencing a surprising downward slide. In this blog post, we’ll explore why MicroStrategy is dropping even as Bitcoin surges, what Mark Yegge is doing about it, and how you can learn from this strategy to generate consistent passive income.

The Confusing Divergence: Bitcoin Up, MSTR Down

In the past few days, Bitcoin soared to new all-time highs. Naturally, investors expected MicroStrategy to rally alongside it. After all, MicroStrategy is known for holding large amounts of Bitcoin on its balance sheet.

But instead, MSTR shares have pulled back—from a recent high of ~$440 to as low as ~$360.

Why? According to Mark Yegge, this divergence is likely due to profit-taking and share dilution. MicroStrategy has been issuing new shares to purchase more Bitcoin, which can reduce the value of existing shares in the short term. Although that’s not necessarily bad long-term, it can hurt momentum in the short run.

Chart Insights and Gap Theory

Mark identifies a technical reason behind the pullback: a gap on the chart.

Using his “gap fill” strategy, he points to a price gap near the $351 level. In technical analysis, gaps often act like magnets, and prices frequently return to “fill” them before resuming an uptrend.

Mark's interpretation? The stock could be heading toward that $351 range before bouncing back.

Rolling the Covered Call Strategy

Instead of panicking, Mark follows his Cash Flow Machine strategy—a system built around generating income by selling options. He doesn’t try to guess where the stock will go next. Instead, he focuses on "the juice"—the extrinsic value of options.

At the time of the video:

Mark had open 390 calls expiring this week.
He already captured about 80% of the premium (“juice”) from those calls.
With limited upside left and some downside risk, he rolled out to next week’s 380 strike price.

This move brought in $7.56 per share, or $9,828 in premium income on his 1,300-share position—even though MSTR dropped!

Why This Strategy Works

Mark’s style is not about trying to guess short-term price moves. It’s about:

Selling premium (juice) weekly
Minimizing downside using in-the-money or slightly out-of-the-money calls
Rolling positions early when most of the juice is collected
Staying emotion-free and following a plan

By selling time-based decay rather than betting on price direction, you can collect weekly income regardless of whether the stock goes up, down, or sideways.

Certainly! Here's a "Life-Improving Tips" section tailored to the tone and message of the blog about using covered calls for passive income:

Life-Improving Tips from the Covered Call Strategy

Trading isn’t just about numbers—it’s about building a life of freedom, control, and peace of mind. Here are a few lessons from Mark Yegge’s strategy that can improve your life beyond the stock market:

Trade Emotions for Strategy
Markets go up and down. If you tie your emotions to every tick, you'll be exhausted. Instead, create a written trading plan with rules you can follow calmly. It’ll reduce stress and help you make better decisions in life and finance.
Focus on What You Can Control
You can’t control stock prices, Bitcoin headlines, or market panic. But you can control your trades, your risk, your position size, and your reaction. That mindset carries into every part of your life—from career to relationships.
Earn While You Sleep
Mark’s approach emphasizes consistency over hype. Imagine making $1,000, $3,000, or even $10,000 a week—without staring at a screen all day. That kind of income opens doors: more time with family, travel, or working on your dream project.
Use Data, Not Drama
Social media and news are full of noise. Smart investors operate with probability, math, and structure. That disciplined thinking helps you cut through noise in other parts of life too—like goal setting, planning, and decision-making.
Wealth is a Skill, Not a Secret
You don’t need to guess the next hot stock. With the right training, you can build a repeatable income system. Learning how to do that is an investment in your future—a skill that pays dividends for life.

FAQ – Covered Call Strategy Insights

Q: What is “the juice” in covered calls?
A: “Juice” refers to the extrinsic (time) value in an option. It’s the part that decays over time, allowing sellers to profit when the option expires.

Q: Why did Mark roll to the 380 strike instead of staying in the money?
A: To avoid the risk of whipsaw losses. Staying slightly out of the money still allowed him to collect good juice while leaving room for upside.

Q: What’s a “whipsaw” in this context?
A: It’s when a stock moves up and down unpredictably, causing you to “lock in” losses by adjusting trades too quickly. Mark’s plan helps avoid this.

Q: Can I do this strategy with a small account?
A: Yes, using LEAPS options (long-term call options) as synthetic stock is a great way to reduce capital requirements while applying the same strategy.

Call to Action

Are you tired of watching your portfolio bounce around with no direction? Do you want to earn predictable, consistent income—even when markets get volatile?

Then it’s time to learn the Cash Flow Machine strategy.

Join Mark Yegge’s Free Insider Tips Newsletter – Get actionable strategies and updates delivered to your inbox.
Subscribe to his YouTube Channel for real-time trade breakdowns and educational videos.
Enroll in the Cash Flow Machine Elite Course to master weekly income generation using covered calls. No hype. Just results.

Get started today

Conclusion

MicroStrategy’s drop while Bitcoin rises may seem odd, but it offers a valuable lesson: price isn’t the only way to win in the market. By using covered calls, you can profit even in a declining or sideways market.

Mark’s approach—focusing on "the juice" and managing risk through smart rolls—is a proven way to generate reliable passive income. Instead of reacting emotionally to market noise, he executes a plan grounded in probability and math.

Why Is MicroStrategy Dropping While Bitcoin Is Booming?

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