Buying 200 shares of TSLA at $315.10 and Selling 2 TSLA $315 7/25 CALL for $14.67.
You bought 200 shares of Tesla at $315.10 each. This cost you a total of $63,020. At the same time, you sold 2 call options with a strike price of $315 that expire on July 25th. For selling these options, you received $14.67 per share, or $2,934 total. This money is yours to keep no matter what happens.
By selling the call options, you agreed that if Tesla’s price is above $315 on July 25th, you must sell your 200 shares at $315 each. If Tesla stays below $315, you keep your shares. Either way, you already earned $2,934 from selling the options.
This strategy gives you extra income while you hold the shares. However, it limits your profit because you might have to sell your shares at $315 even if Tesla goes much higher.
If Tesla’s stock price falls significantly — for example, down to $250 — you still own 200 shares. You will lose money on the stock price because you bought at $315.10, but you keep the $2,934 premium, which helps soften the loss a little. The option premium doesn’t protect you fully from a big drop — it just gives you a small cushion.
See also covered-call-strategy-how-to-earn-income-from-stocks-you-already-own
Reasons
- Yield with Edge: ~$2,934 in income for a short ~11-day span.
- Defined Risk: Downside cushioned to ~$300.43; limited drawdown unless TSLA collapses.
- Flexibility: If TSLA holds flat, can either let expire and repeat, or roll out/up before expiry.
Entry
On July 14, 2025, we setup a covered call strategy. We purchased 200 shares of TSLA at $315.10 and sold 2 $315 7/25 CALL option in hope that the stock will stay or go over the current level. If it does, we will capture $2,934 in 11 days for around 4.6% ROI.
| ASSET | |
| Symbol | TSLA |
| Option Type | CALL |
| Strike Price | $315 |
| Expiration Date | 25 Jul 2025 |
| ENTRY | |
| Date | 14 Jul 2025 |
| Stock Price | $315 |
| Delta | – |
| Option Price (Sold At) | $14.67 |
| Quantity | 2 |
| Projected Holding Period | 11 days |
| Projected Return | 4.6% ($2,934/$63,000) |
Updates
- 07/24 – Buy-to-close 2 CALL options at $1.82. Price dropped from $315 to $300. So we lost about $215 overall. We will keep the shares and wait for price to rebound, then sell 2 covered calls again.
- 07/25 – Sold 2 Covered TSLA $315 8/15 for $14 each. So $1400*2 = $2800 in the pocket to wait until 8/15. Current Stock Price is about $315. This lowers the original basis from $315 to $315-$14.6+$1.82-$14 = $288.22
Exit
This trade is still on-going.
| EXIT | |
| Date | 24 Jul 2025 |
| Stock Price | $300 |
| Delta | |
| Option Price (Acquired At) | 1.82 |
| PROFIT & LOST | |
| Realized Profit/Loss | (($14.67-$1.82) + ($300-$315))*100 = -$215 |
| Return | |
| Holding Period |
