We like selling PUTs on TSLA because its high volatility consistently offers excellent premium income, making each trade worth the risk.
This trade represents a 4.1% ROI in 21 days (100.5% annualized) opportunity.
Tesla, Inc. Common Stock is estimated to report earnings on 07/22/2025.
If you are new to option trading, please check out Option Basics.
Reasons
- Strong Technical Support Near $300: Tesla’s stock has established significant support levels just below $300, with accumulated volume support at $284.70 and $272.20. These levels have historically attracted buyers, making a sharp breakdown less likely in the near term.
- Recent Downside Already Priced In: The stock has recently experienced a notable decline, with a sell signal issued from a pivot top in late May and a drop of over 13% since then. Current technical indicators suggest the worst of the short-term selling may be behind us, and the stock is now closer to support than resistance.
- Premium Collected Is Attractive: Selling the $300 put for $12.25 generates a solid premium, offering a cushion against further downside. With Tesla trading near $315 at the time of the trade, the breakeven is effectively reduced to around $287.75, which is just above a major support zone.
Entry
On July 3, 2025, we sold a $300 PUT option (CASH SECURED) on Tesla (TSLA) that expired on July 25, 2025. The stock was trading at $313, and we collected $1,225 in premium.
| ASSET | |
| Symbol | TSLA |
| Option Type | PUT |
| Strike Price | $300 |
| Expiration Date | 25 Jul 2025 |
| ENTRY | |
| Date | 3 Jul 2025 07:25 AM PST (Thu) |
| Stock Price | $313 |
| Delta | 0.35 |
| Option Price (Sold At) | $12.25 |
| Projected Holding Period | 21 days |
| Projected Return | 4.1% ($1,225/$30,000) |
| Projected Annualized Return | 100.5% |
P&L
Profit Potential
Updates
- 7/16 – 13 days since open, TSLA is at $317 and option price is $6.15. It is sitting on a profit of $600 (at 50%)
Exit
This trade is still on-going.
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