Tesla Stock Has Been Flat - Good for Shorting Puts to Make a One-Month 2.5% Yield

Core Viewpoint - Tesla, Inc. (TSLA) stock has remained stable over the last three months, making shorting out-of-the-money (OTM) puts a profitable strategy due to high premiums available [1][3]. Summary by Sections Stock Performance - TSLA stock price has been relatively flat, trading at $430.27, similar to its price of $429.83 two months ago [1]. - On October 26, TSLA was priced at $433, indicating minimal fluctuation in the stock price over the observed period [3]. Options Strategy - Shorting OTM puts has yielded significant returns; for instance, a $400 put option expiring on January 2, 2026, offers a yield of 2.5% [1][8]. - The $405 put option has a high midpoint premium of $10.68, providing a yield of 2.6370% [6][7]. - For more conservative investors, the $400 put option has a premium of $9.27, yielding 2.3175% [8]. Yield Analysis - Investors engaging in both short put strategies could average a yield of approximately 2.5%, equating to a potential return of $9.975 on an average investment of $402.50 [8]. - Over the past two months, investors could have achieved a total return of about 5.5% [10].