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Why TSLA Is an Excellent Covered Call Candidate Right Now Strong · 78/100
Tesla Inc (Consumer Cyclical) · $407.76 ·
Analysis generated Jul 10, 2026 ·
Data as of market close Jul 10
· Market closed — data may be from last trading day
Quick Take
TSLA is trading at $407.76 with RSI at 52 (neutral territory). Options IV is at 48% — 30% below its 30-day average of 69%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
52
IV Today
48.5%
IV vs 30d Avg
-30%
MACD
bullish
ADX
13
MFI
58
The Setup
TSLA Covered Call
LONG STOCK
100 shares @ $407.76
SHORT CALL
$440 Sep '26 · $21.78/sh
Net Cost
$38,598
Max Profit
+$5,402
Break-even
$385.98
Projected P&L at Target
+$5,402
(14.0%)
P&L at Expiry
P&L Scenarios
What happens at different TSLA prices by expiry:
| TSLA Price | Today | Aug 3 | Aug 26 | Sep 18 (exp) |
|---|---|---|---|---|
| $326 (-20%) | -$6,317 | -$6,112 | -$5,991 | -$5,977 |
| $347 (-15%) | -$4,560 | -$4,241 | -$3,994 | -$3,938 |
| $367 (-10%) | -$2,944 | -$2,497 | -$2,073 | -$1,900 |
| $387 (-5%) | -$1,490 | -$922 | -$295 | +$139 |
| $400 (-2%) | -$703 | -$72 | +$671 | +$1,362 |
| $408 (0%) ← now | -$215 | +$452 | +$1,264 | +$2,178 |
| $416 (+2%) | +$244 | +$942 | +$1,812 | +$2,994 |
| $428 (+5%) | +$878 | +$1,609 | +$2,543 | +$4,217 |
| $440 (+8%) ← target | +$1,430 | +$2,181 | +$3,146 | +$5,402 |
| $449 (+10%) | +$1,792 | +$2,549 | +$3,518 | +$5,402 |
| $469 (+15%) | +$2,541 | +$3,285 | +$4,209 | +$5,402 |
| $489 (+20%) | +$3,142 | +$3,845 | +$4,664 | +$5,402 |
Why This Strategy, Why Now
- RSI at 52 — neutral-bullish
- IV -30% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 13 — 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.