I Made $18,000 in ‘Free Money’ Selling Call Options on 200 Tesla Shares: Here’s How the Strategy Works

The Mechanics, In Plain English

You ain astatine slightest 100 shares of Tesla (NASDAQ:TSLA). Hankwitz utilized a acquisition terms of $220 per share. Through your brokerage, you merchantability idiosyncratic the close to bargain those 100 shares astatine a higher strike, accidental $250, by a acceptable expiration date. The purchaser pays you a currency premium up front, accidental $500. The telephone is "covered" due to the fact that you already ain the shares backing it. One declaration equals 100 shares, truthful 200 Tesla shares means 2 contracts.

Three things tin hap by expiration:

The expert who called NVIDIA successful 2010 conscionable named his apical 10 stocks and Tesla wasn't 1 of them. Get them present FREE.

• Tesla finishes beneath $250. The declaration expires worthless. You support the shares and the $500. Next month, you constitute different one.

• Tesla finishes close astatine $250. Same outcome. You support the shares and the premium.

• Tesla rockets past $250 to $300. You are obligated to merchantability astatine $250, giving up $50 per stock of upside. You inactive slope $30 per stock successful superior summation positive the $500 premium.

Co-host Robert Croak framed the bargain directly: "You're trading immoderate of your upside imaginable for guaranteed income today." When the banal stays beneath the strike, helium added, you "do it again and again and again."

Why Tesla Specifically

Tesla is simply a favourite for covered-call writers due to the fact that enactment premiums standard with volatility, and Tesla has plenty. The banal carries a beta of 1.793 and has traded successful a 52-week scope of $273.21 to $498.83. Shares closed astatine $443.30 connected May 14, 2026, up 21.72% successful the past month. That benignant of determination is precisely what telephone writers fearfulness (capped upside) and emotion (fat premiums) simultaneously.

Tesla pays nary dividend, truthful semipermanent holders extract regular currency by selling premium against the position. Tesla's Q1 FY2026 results (filed successful an 8-K with the SEC connected April 22, 2026) showed gross of $22.39B and escaped currency travel of $1.44B, with 2026 catalysts including Cybercab, the Tesla Semi, Megapack 3, and an Optimus ramp astatine Fremont. Each is simply a crushed a covered telephone could get blown done to the upside.