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Why TSLA Is an Excellent Covered Call Candidate Right Now Strong · 78/100
Tesla Inc (Consumer Cyclical) · $380.68 ·
Analysis generated Oct 6, 2026 ·
Data as of market close Oct 6
Quick Take
TSLA is trading at $380.68 with RSI at 59 (neutral territory). Options IV is at 42% — 26% below its 30-day average of 57%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
59
IV Today
42.3%
IV vs 30d Avg
-26%
MACD
bullish
ADX
19
MFI
55
The Setup
TSLA Covered Call
LONG STOCK
100 shares @ $380.68
SHORT CALL
$410 Dec '26 · $16.82/sh
Net Cost
$36,386
Max Profit
+$4,614
Break-even
$363.86
Projected P&L at Target
+$4,614
(12.7%)
P&L at Expiry
P&L Scenarios
What happens at different TSLA prices by expiry:
| TSLA Price | Today | Oct 31 | Nov 24 | Dec 18 (exp) |
|---|---|---|---|---|
| $305 (-20%) | -$6,141 | -$6,006 | -$5,938 | -$5,932 |
| $324 (-15%) | -$4,449 | -$4,217 | -$4,056 | -$4,028 |
| $343 (-10%) | -$2,886 | -$2,539 | -$2,230 | -$2,125 |
| $362 (-5%) | -$1,482 | -$1,019 | -$524 | -$221 |
| $373 (-2%) | -$725 | -$201 | +$405 | +$921 |
| $381 (0%) ← now | -$257 | +$302 | +$973 | +$1,682 |
| $388 (+2%) | +$179 | +$768 | +$1,496 | +$2,443 |
| $400 (+5%) | +$778 | +$1,400 | +$2,189 | +$3,585 |
| $410 (+8%) ← target | +$1,261 | +$1,899 | +$2,716 | +$4,614 |
| $419 (+10%) | +$1,630 | +$2,273 | +$3,092 | +$4,614 |
| $438 (+15%) | +$2,310 | +$2,936 | +$3,702 | +$4,614 |
| $457 (+20%) | +$2,840 | +$3,420 | +$4,078 | +$4,614 |
Why This Strategy, Why Now
- RSI at 59 — neutral-bullish
- IV -26% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 19 — range-bound, perfect for selling calls
- No squeeze — no imminent breakout
Key Risks
TSLA has bullish momentum (MACD). If a positive catalyst emerges (earnings beat, product launch), the stock could gap past your strike. Consider rolling the call up if TSLA approaches the strike before expiry.