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The market’s down big this morning, which opens up more possibilities for income trades, so we’ll cover that and more [tap to join us for Market Masters]
Look, I don’t like to brag. But sometimes you stumble onto something so consistent and repeatable that you almost feel guilty…
Direxion Daily TSLA Bull 2X Shares (TSLL) is that ticker for me.
I’m not talking about one lucky trade — I’m talking about working this thing from every angle — $13 strike puts, $16 calls, $16.50 calls and $18.50 calls — and watching premium roll in day after day.
It’s honestly embarrassing how much money this position has generated.
As of Monday, Tesla (TSLA) is trading around $402, while TSLL is sitting near $14.50.
With the 52-week range between $6.29 and $23.74, my current strikes — $13, $16 and $18.50 — are sitting around real pivot zones.
The $18.50 call is out-of-the-money (OTM), while the $13 put is relatively conservative but still within range.
That said, I’m not blindly holding these into expiration.
If TSLL rallies hard — say to $17 on a strong headline — that $18.50 call can expand quickly because of gamma risk.
I typically aim to close at 50% of max profit rather than squeeze every last dollar. Locking in gains early reduces the risk of a late-week volatility spike turning a winner into a headache.
I take the money and run, and then redeploy it.
Why TSLL Keeps Delivering
TSLL is a leveraged Tesla ETF, and it moves twice as much as the underlying. That volatility is exactly what makes it ideal for the wheel strategy.
At its core, the wheel is simple: You start with a stock you wouldn’t mind owning, then you sell a cash-secured put below the current price. If you get the shares, great. If you don’t, you keep the premium and repeat. Once you own shares, you flip to selling covered calls and let time decay work in your favor.
Beyond the option premium, TSLL is currently yielding about 9.6% in dividends, with the next ex-dividend date coming up on March 24.
Even if I get assigned and have to hold the shares briefly to sell calls, I’m capturing that yield as part of the total return.
Right now, the implied volatility (IV) on these March contracts is at the 82nd percentile, meaning premiums are higher than they’ve been 82% of the time over the past year. That’s not just “rich” — that’s statistically elevated, and it’s a major reason I’m leaning into premium-selling instead of directional bets.
When fear spikes, option premiums get juicier and the wheel strategy can become more profitable. Volatility isn’t something to avoid — it’s something to monetize.
However, I’m fully aware of the path dependency risk. Since January, TSLA has dropped about 12%, but because of the 2x daily reset and volatility decay, TSLL’s recovery is much harder. If TSLA trades sideways for a month, TSLL can still lose value even if the headline price barely moves.
I’m not holding these for years. Because of the 2x daily reset, I treat these as 30-day cycles. If I get assigned at $13, my goal isn’t to hold until 2030 — it’s to sell the $14 call immediately and work my way out of the position.
With Tesla’s Optimus robot launch and the Austin Robotaxi rollout happening in early 2026, IV is elevated. I’m essentially selling insurance to traders betting on these binary events. That is why the premiums are high — but it is also why gap risk exists.
Interestingly, sentiment on the ground in Austin has been mixed. Some investors see the rollout as transformational, while others are skeptical about regulatory friction and scaling logistics. That split sentiment is exactly what keeps the “fear bid” alive in the options chain. Uncertainty is fuel for premium sellers.
The Lesson: Don’t Marry One Strike
The market is currently on edge for the March 9 National Highway Traffic Safety Administration deadline, where Tesla has to submit critical full self-driving data. That’s exactly why the $13 puts are paying so much right now — traders are pricing in the risk of a data-driven sell-off.
Here’s what most traders miss: You don’t have to pick one side. You can work both sides of the same ticker at different strikes and get paid on each layer while others are frozen by headlines.
TSLL’s been productive for me not because I predicted anything perfectly, but because I built the position with intention, respected volatility, understood the dividend component and acknowledged the decay risk.
Some days I’m selling puts. Some days I’m selling calls. Some days I’m rolling both — and the whole time, I’m managing exposure instead of marrying the position.
If you’ve been waiting for the perfect setup, stop waiting. Start building positions that pay you whether you’re right, wrong or somewhere in between.
Trade well,
Jack Carter
Jack Carter Trading
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. This Trading Approach Goes Against Everything You Know
Lean closer…
Because I’m about to hand you a trade idea that could be worth $500 or more on a $2,500 stake by tomorrow.
What you’re about to see goes against everything you’ve been taught about options — flipping traditional wisdom upside down.
Here’s what’s actually incredible. This setup is built for the exact kind of volatility we’re seeing in today’s market.
Here’s what’s actually incredible. This setup is built for the exact kind of volatility we’re seeing in today’s market.
It’s already weathered some of the market’s most volatile storms in the past, and I’m trusting it to take us through these fresh yet chaotic waters.
I can’t make absolute trading guarantees, of course.
But if you’d like to see how I plan to go after the market armed with this unconventional setup — and even tag along if you choose…
