Options premiums always get extra juiced coming into an earnings announcement, especially with Tesla (TSLA).
I hold the October 13th 267.50s short, they look to be expiring worthless today so I get to keep that options premium I sold a week ago.
Given earnings are coming up Wednesday I wanted to create a bigger spread between the stock and my short option so rolled from that 267.50 up into the Oct 20th 277.50s in case TSLA runs up into earnings and/or get a pop higher on earnings.
Reality I probably should have went with an even higher strike price, but getting a 2.50 credit was too tasty to pace up and puts me nearly 20 points higher than where the stock is now.
If it pumps on earnings than I will likely end up with a nice profit and have to close out the entire trade. I hold the 230 April 2024 Leaps on the long side.
If it drops on earnings then I will be able to roll down into a lower strike price upon the Oct 20th expiring and pick up some premium.
