Gooood morning traders!
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Ever see a stock like TSLA dip and freeze, unsure how to act?
That’s the trap most traders fall into—liking a stock but missing the opportunity when it pulls back.
The fix? Plan ahead and strike when the moment’s right.
Here’s a trade idea to capitalize on TSLA’s volatility using a twist on the Covered Strangle—not the same old playbook every guru’s pushing.
Step 1: Sell a July 18 Expiration 225 Put
Start by selling a TSLA 225 put for the July 18 expiration, priced around $11.00.
That’s $1,100 of premium straight into your account.
If TSLA stays above 225, you keep the premium, no strings attached.
Step 2: If Assigned, Build the Strangle
If TSLA dips below 225 and you get assigned shares, don’t sweat it.
Here’s where we get creative:
Sell a 175 Put: Collect more premium by selling a 175 put.
Sell a Covered Call: Pair your long stock position with a covered call to generate additional income.
Now you’re pulling in two streams of income—from the 175 short put and the covered call—while holding TSLA and waiting for a rebound.
Step 3: Rinse and Repeat
If TSLA drops further and the 175 put gets assigned, repeat the process:
Sell a 125 put for more premium.
Keep selling covered calls against your long stock.
How You Win
If and when TSLA recovers (and let’s be real, it’s not going to zero), you’re cashing in from:
Premiums from selling puts.
Premiums from selling covered calls.
Capital gains when your shares get called away at higher prices.
This strategy turns TSLA’s dips into opportunities, stacking income while you wait for the stock to climb back.
Plan ahead, stay disciplined, and let the market work for you.
Ready to dive in?
Reply with any questions, and let’s talk TSLA.
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