After the big jump in TSLA post earnings, I figured it might be another temporary hype effect from Elon. I had some shares in one of my MF accounts and decided to write covered calls. There is a lot of volatility in TSLA shares so the calls garner a nice premium. I went with the $310 Jan Strike. With stock at $268, it was like lowering my basis to $254 with the possibility of being called at $310. You can see that works out to about a 7.33% monthly return if called away. If not called, I pocket $13.89 a share, which works out to a 5% “dividend” over a 3 month period. Once in the past I did a similar buy-write and it got called away, which is what I wanted. This time I hope to keep the stock or roll the call.
