On My Tesla Trade, I Messed Up But Will Still Make $67K – Dummy Alert!

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If you've been following my Tesla trades, you know I'm all about generating consistent income using covered calls. Today, I'll break down a real trade, including a mistake I made but still managed to lock in $67,000 in profit. This is a must-read if you're serious about learning how to trade options for passive income.

Analyzing the Tesla Chart

Tesla's stock has been all over the place since its earnings report. It surged, dipped, and moved within a $10-$15 range between $390 and $412. Today, Tesla is breaking out, trading at $416, so it's time to make a move.

My Current Position

Long: Tesla 325 synthetic stock position (Delta: 84)
Short: Tesla 370 calls, deep in the money (Delta: 92 – higher than my long position!)
Collected Premium: $3,500 per contract
Remaining Extrinsic Value: $153 per contract with 1 week left
Total Contracts: 45

Since my short Delta is higher than my long Delta, it's time to make an adjustment. The goal is to roll the position up and collect more premium (juice).

The Roll-Up Strategy

Why Roll the Position?

Most of the juice is already collected – only $153 left out of the $1,200 I originally received.
Tesla is holding strong above $400 – a good opportunity to roll to a higher strike price.
Avoid being caught in a “whipsaw” – if the stock dips back below $400, I don’t want to be stuck.

Choosing the Next Strike Price

Looking at next week’s option chain, I identified the 410 strike as a great candidate:

Extrinsic Value: $1,000 per contract
In-the-Money Amount: Higher, but I get more juice
Flexibility: Rolling one week keeps me nimble

Executing the Trade

Steps Taken:

Bought back my 370 calls.
Sold new 410 calls for next week.
Collected another $1,000 per contract in juice.

This move means I’m now positioned at 410 instead of 370, with a fresh round of premium. If Tesla stays above 410, I win. If it drops, I’ve still locked in gains.

Oops – The Mistake!

I accidentally rolled the position out two weeks instead of one (February 14 instead of February 7). But here’s the silver lining:

Instead of $1,000 per contract, I got $1,576 per contract.
That’s $67,000 in income for the next two weeks!
More downside protection ($5 additional cushion).

Yes, I gave up some flexibility, but I gained higher income and safety in return.

Life-Improving Tips from This Trade

Don't Fear Mistakes – Even pros make them. The key is to have a system that allows you to recover and profit anyway.
Focus on Consistency, Not Predictions – I never try to predict Tesla’s direction. I just trade the juice every week.
Monitor Your Delta – When your short Delta is higher than your long Delta, it’s time to make a move.
Read Back Your Orders! – A simple oversight meant I went out two weeks instead of one, but because of my system, I still came out ahead.

FAQs

Why do you want the stock to go over your strike price?

Because it means I collected maximum premium and the trade worked as planned.

What happens if Tesla crashes next week?

Since I sold deep in the money, I have built-in downside protection of $40 per share.

Won’t I get assigned if my short calls are in the money?

Not likely. Option buyers typically don't exercise early because they'd rather keep the time value.

Can I use this strategy on other stocks?

Yes! Stocks with high liquidity and good option premiums work best. Check out my MicroStrategy trade playlist for another example.

Call to Action

🚀 Want to learn my full covered call strategy?

✔ Get 2-4% monthly returns with my Cash Flow Machine system. ✔ Learn how I took my IRA from $111K to $500K in 19 months. ✔ Stop guessing stock direction—start collecting income consistently.

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Conclusion

Even with a mistake, I still locked in $67,000 in income from rolling my covered calls. This strategy is about collecting consistent income, managing risk, and making smart adjustments. Stop stressing about stock direction—focus on creating passive income every single week.

On My Tesla Trade, I Messed Up But Will Still Make $67K – Dummy Alert!

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