Part 8/12:
- Short In-the-Money Puts: Selling puts to generate premium income, particularly those close to the current stock price.
The Case for Short Puts
The preferred approach, according to the speaker, is selling short-term in-the-money puts—for example, the October 17th expiration at the $455 strike. This strategy allows capturing premium (around $21 per contract), effectively providing a buffer against downside moves. As long as Tesla remains above approximately $434 at expiration, the position is profitable.