Tesla Earnings Strategy: How I Secured $54,000 in Juice While Reducing Risk

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Tesla (TSLA) has earnings tonight, and if you’ve followed me for a while, you know that earnings days are some of the riskiest days to trade. That’s why I always take steps to protect my downside while still collecting strong income from options premium (the juice).

This week, I adjusted my covered call strategy to lock in $54,000 in premium income while ensuring my position is safe from any major post-earnings volatility.

Why Earnings Days Are Risky for Traders

Tesla is known for its massive price swings after earnings. Here’s why earnings days are dangerous:

🚨 Unpredictable Price Moves: A stock can move up or down 10%+ overnight based on earnings results.
🚨 Elon Musk Factor: A single unexpected statement from Elon Musk can send shares tumbling or skyrocketing.
🚨 Market Volatility: The Fed also released an update today, adding even more uncertainty.

With all this risk, my goal is to maximize protection while still generating high income from options.

My Tesla Trade Strategy for This Week

Last Week’s Position

I sold 45 contracts of TSLA 325 calls when the stock was trading at $407.
I collected $19 per contract in premium.
As of today, those calls are worth $12.50 per contract, so I could buy them back for a profit of $7 per contract.

Rolling Down for Protection

To reduce my risk, I decided to roll down my position:

Sold new 370 strike calls for next week (expiring February 7th).
Collected $1,200 per contract in premium (extrinsic value).
Now, I have $35 per share in downside protection in case Tesla drops.

Total Income Earned

$1,200 per contract × 45 contracts = $54,000 in premium income.
This means I’m protected all the way down to $359 per share.

How This Strategy Works (Even in a Volatile Market)

📉 If Tesla Drops: I have $35 per share of protection before I start losing money.

📈 If Tesla Rises: I may need to roll up my contracts, but my base position also gains value, offsetting the impact.

💰 Consistent Juice Collection: No matter what Tesla does, I’m making weekly income from selling options.

This is why I say: I trade for the juice—not the stock movement itself.

Key Trading Lessons from This Move

🔹 Earnings Days = High Risk: If you don’t adjust your trades before earnings, you’re taking unnecessary risks.

🔹 Always Protect the Downside: The worst thing you can do is let a bad earnings report wipe out your portfolio.

🔹 Generate Income Regardless of Stock Direction: Covered calls and synthetics allow you to make money even when a stock drops.

FAQs: Covered Calls & Earnings Trading

Q: Why not just hold the stock and wait for earnings?
A: Holding through earnings is pure gambling—the stock could drop 10%+ overnight. Selling covered calls gives me protection and income.

Q: What happens if Tesla skyrockets after earnings?
A: If Tesla rallies, I may need to roll my calls up to higher strike prices. However, my base position also increases, so it’s not a loss.

Q: How do I know which strike price to sell?
A: I analyze market volatility and look for a strike price that gives me:
1️⃣ Strong premium (juice)
2️⃣ Enough downside protection
3️⃣ A balance between risk and reward

Call to Action

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Conclusion: Smart Traders Reduce Risk, Not Chase Gains

Tesla earnings are unpredictable, but trading with a strategy ensures I stay profitable without unnecessary risk. By rolling my calls and adjusting my position, I’ve locked in $54,000 in premium income while ensuring I’m protected from any major stock drops.

The key takeaways:
✔ Reduce risk during earnings—don’t gamble.
✔ Sell covered calls to collect income—regardless of stock movement.
✔ Adjust your position based on volatility—always have a plan.

Tesla Earnings Strategy: How I Secured $54,000 in Juice While Reducing Risk

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