Tesla Inc. (TSLA) Update

Tesla’s inventory levels have remained steady for the last couple of months. Interestingly, investors are finding gains by shorting out-of-the-money (OTM) put options. For instance, if a put option’s strike price is set at 6.4% below the current price for the month ahead, it’s yielding about 3.2%.

Currently, TSLA is closing at $438.07. This figure is quite close to its previous close of $445.91 from November 6, 2025. Yet, some savvy investors are still seeing profits by shorting OTM put options, as well as OTM calls.

Generating Income with Short Puts

We touched on this topic in a piece from December 2, 2025, emphasizing that Tesla’s stock being flat presents a good opportunity for shorting puts with a 2.5% yield for a month.

To illustrate, I shared how an investor could earn $1,068 by securing $40,500 as collateral for a put option expiring on January 2, 2026. This was a cash-backed strategy, allowing immediate profit with a yield of 2.637%. This was calculated from the profit against the collateral used. Investors, in this scenario, would be obliged to buy 100 shares at $405 if TSLA dropped to that price by January 2. Since TSLA closed at $438.07, those who executed this strategy made a tidy return of 2.64% over the month. The stock only moved up marginally, by about 1.77%. So, shorting the OTM put turned out to be a smarter move.

This suggests that repeating the short put strategy could be advantageous at this point.

Short Selling TSLA Puts in the Near Future

Examining the TSLA put option chain expiring on February 6, 2026, we see that the median premium for a put option with a strike price of $410 is sitting at $13.23.

If investors act on this, they can see immediate profits of 3.226%, calculated as the premium divided by the strike price. The obligation here is to purchase 100 shares at $410, which is 6.4% below the recent closing price.

To break it down, a “Sell to Open” order for a $410 put contract can yield $1,323.00 upfront.

Even if TSLA drops to $410 before the expiration date, the break-even point for investors drops below $400 per share, specifically to $396.77. This really highlights a solid method of lowering potential entry points into the stock, offering a 9.4% downside protection.

This scenario is also appealing for both current and new investors, allowing them to earn while they position themselves further down the line.

Weighing the Risks

However, if TSLA does dip below $410 and investors are assigned the obligation to purchase 100 shares, they could face an unrealized loss. For example, if TSLA were to hit $396.00, that would place investors under their break-even point.

But all hope isn’t lost. If they keep up with short put plays over the month, it adds up. In fact, if an investor made gains of $1,068 plus $1,323, that totals $2,391 over two months, which translates to about $23.91 per put contract sold short.

This means the adjusted break-even point becomes $386.09—about 11.9% lower than the current price. Plus, with 100 shares of TSLA now owned, the strategy shifts to possibly selling OTM calls in the following month. That could cover potential unrealized losses without needing to sell their shares.

In summary, if TSLA remains stable in the coming months, capitalizing on elevated put option premiums could be a wise move. Shorting these options, for both one- or two-month terms, can provide higher returns and more favorable buying conditions.