Options trading. For most people, it’s like juggling chainsaws—sounds cool, but you’re probably losing a finger. For David, though, it’s more like running a shady underground poker game: risky, stressful, but insanely profitable if you know what you’re doing. This guy has been selling Tesla covered calls since 2020 and raking in cash while dodging disasters. Sometimes he wins big; sometimes the house nearly burns down.
Here’s how he does it, why it works (and doesn’t), and what happens when you break your own rules.
Mastering the Tesla Covered Call Strategy
David’s strategy is deceptively simple:
Sell calls at least 20% out of the money. Gives Tesla room to do its crazy thing without nuking your portfolio.
Avoid big weeks. Earnings reports, product launches, anything involving Elon and a microphone? Skip it.
Don’t hold calls over weekends. Because who knows what kind of chaos Monday morning will bring?
Sounds smart, right? But here’s the thing: rules only work if you actually follow them. And sometimes David doesn’t.
Like in 2021, when Hertz announced its deal with Tesla. David thought, “Rental cars? Pfft. No way this moves the stock.” Spoiler: it did. Tesla jumped 30%, and he ate a $40,000 loss. That’s what ignoring your own playbook gets you.
The Tesla Covered Call Strategy Payoff
Most weeks, David’s making $2K-$3K selling calls. On a great week, he might pull $15K or more. That’s not chump change—it’s lifestyle money. But then there are the bad weeks. Like January 2023, when Tesla exploded 30% in one week, obliterating months of premium income.
David says the key is discipline. Lose one week? Fine. Don’t let it spiral into panic selling and bad decisions. It’s a marathon, not a sprint—though sometimes it feels like running uphill with bricks in your pockets.
Margin: The Double-Edged Sword
Let’s talk about margin. David uses it, but only a little. “If my account’s worth a million, I’ll borrow $100K, tops.” It’s like playing poker with borrowed chips—risky, but manageable if you don’t get greedy.
Except... sometimes it gets dicey. Like when Tesla hit $101 last year. David was one margin call away from selling shares at the worst possible time. Luckily, the stock bounced, but he knows he dodged a bullet. Lesson learned? Don’t mess with margin unless you’ve got nerves of steel and a solid backup plan.
The Guilt Trip: Betraying Tesla?
Here’s the weird part: David is a diehard Tesla fan. Like, the guy met Elon in an elevator and froze up. So selling covered calls sometimes feels... dirty. “Am I shorting the company I believe in? Betraying Elon?”
His way of coping? “If Tesla moves up more than 20% in a week, that’s probably unhealthy for the company anyway.” It’s a mental gymnastics routine, but hey, it works for him.
Why This Isn’t for Everyone
Let’s be real: most people shouldn’t touch options with a ten-foot pole. It’s stressful, complicated, and super easy to screw up. And if you’re layering on margin? You’re basically daring the market to destroy you.
David knows this. But for him, it’s a calculated risk. He’s got the experience, the rules (when he follows them), and the conviction to weather the storm. If you’re thinking, “I could do that,” ask yourself: Are you ready to lose big and keep going? If not, stick to index funds.
The Bottom Line: Play Smart, Break Rules Smarter
David’s Tesla covered call strategy isn’t perfect, but it works for him. He’s turned Tesla’s volatility into a six-figure income stream—while learning (the hard way) to respect the risks. Covered calls aren’t magic, and they definitely aren’t easy. But if you’ve got the guts, the shares, and the discipline, they might just pay off.
Just don’t forget: the moment you break your own rules, the market will humble you. Every. Single. Time.
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