If you’re holding Tesla stock, you’re sitting on more than just potential gains – you’re sitting on income opportunities. And no, I’m not talking about selling. Enter covered calls – a strategy that lets you generate cash while holding onto your TSLA shares.
In our latest video, Bradford breaks down exactly how to turn your Tesla position into a weekly income machine. If you haven’t watched it yet, hit the link here and thank me later.
But if you’re more of a reader, here’s the gist.
What Are Covered Calls (And Why Should Tesla Investors Care)?
A covered call is when you sell a call option against shares you already own. Simple, right? Think of it like renting out your shares for a week. Someone pays you for the chance to buy them at a higher price. If Tesla doesn’t hit that price, you pocket the cash and keep your shares.
It’s a win-win if you play it right.
Stock goes up? You make money on your shares.
Stock stays flat or drops? You still keep the premium (aka free money).
For Tesla investors sitting on 2,500 shares or more, this strategy can add serious income without trimming your position.
Why Covered Calls Work So Well with Tesla
Tesla’s wild price swings make for juicy options premiums – few stocks create as much excitement (or panic) as Tesla, and that volatility is pure gold for options sellers. Every time the market gets excited (or panicked) about Tesla, option prices jump. That’s where you step in.
Selling covered calls when the hype is high means you collect bigger premiums, turning Tesla into a dividend-like stock. And since Tesla doesn’t pay dividends, this is as close as it gets to passive income from your shares.
How It Works (Without the Jargon)
Own Tesla shares.
Sell a call option slightly above the current price (say 5-10% higher).
Collect the premium. If Tesla doesn’t hit that price by the expiration date, the call expires worthless and you keep the cash.
Do this weekly, and you’re stacking income while Tesla’s stock does its thing.
The Risks (Because We Keep It Real)
This isn’t a risk-free hack – let’s not sugarcoat it. If Tesla skyrockets past your strike price, you could watch your shares get called away while you sit there wondering why you didn’t aim higher. If Tesla blows past the strike price, you could be forced to sell your shares at a lower price than the market. But hey, you still make a profit, just not as much.
That’s why we focus on selling calls above the current price – it gives room for Tesla to run while still generating income.
When to Use Covered Calls
Earnings season? Consider sitting out – volatility is wild.
Major Tesla events (like Battery Day)? Maybe skip that week.
Flat or slightly bullish market? Perfect time to sell.
Consistency is key. The more you do it, the more premiums stack up.
Want Help Running This Play?
At Rebellionaire, we help Tesla investors manage their positions with covered calls, strategic trimming, and more. If you’re holding 2,500+ shares, we can show you how to generate income without losing your edge.
Tesla’s a ride – might as well make money on the way up (and sideways).
Watch the full video here for the breakdown.
This blog post isn’t financial advice. Do your research, consult a pro, and trade responsibly.
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