[14 April 22 Trades] Rolling Tesla Covered CALL Options For USD440 Profit In 2 Days

Tesla’s share price closed USD37.37 lower on 14 April 22 (Thursday), the last day of the trading week before the Easter Holiday. That means that the premium for the covered call contract that I sold for Tesla 2 days ago also fell.

On 12 April 22, the premium that I collected from selling the covered contract was USD2,320. 2 days later, on 14 April 22, I closed the contract early by buying the covered call contract at USD1,880. Thus, I made a profit of USD 440 (2,320 – 1,880) in 2 days.

I sold a new covered call contract with a later expiration date on 27 May 22 and a lower Strike Price of USD1,140 and collected a premium of USD2,400 (more than previous contract of USD2,320). Therefore, together with the USD440 profit that I made, my overall gain for the month of April increases to SGD7,435 by rolling the covered call contracts.

If Tesla share prices continues to drop further this month, I will keep rolling the covered call contracts to get more premium and increase my overall returns in trading. That may mean that the PUT contract that I sold on Tesla at a Strike Price of USD1,005 may be exercised. If that happens, I will be selling 2 covered call contracts on Tesla stock subsequently (instead of 1 PUT + 1 CALL currently).

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Looking for ideas on what stocks to invest in or which stocks to trade? You can take reference from what I have been buying or selling. I try to update them as soon as I can in this section, as well as share my thoughts behind executing these trades:
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Also, check out my trading strategies in different market conditions, whether it is bullish, bearish or volatile:
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I concluded my first year of options trading with more than USD160k of gain, see how I do it and the capital I use for every month to give you a sensing of the percentage yield I get out of my gains:
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This blog is as authentic and as transparent as I can share, I do not just show the wins and hide the loss. I have made some very bad decisions in the first 8 years of investing and paid a huge price for them. Here is the loss I have accumulated during these years. I hope you learn some lessons from my mistakes.
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