Part 9/11:
Suppose an investor with a $100,000 portfolio employs this strategy:
Sells five weekly $405 puts, collecting around $245 per contract (roughly $1,225 total).
Assumes Tesla remains above $405 until expiry, netting consistent gains.
Reinvests premiums into new positions or into longer-term options, like leaps for volatility hedging or leverage.
If executed repeatedly with discipline, this approach could generate an effective weekly return of approximately 1.2%. Over a year, this translates into significant outperformance—potentially adding 30–60 percentage points to the underlying gain of Tesla stock itself.