Selling to Open TSLA $340 puts expiring Friday 9/25 for $1.70
10% position, if exercised
A way to hedge your short puts is by selling more puts. Yes, it's a little counter-intuitive...but if I think shares won't go below a certain level - $358 - then I surely think they won't go EVEN LOWER below $340.
So selling even farther out-of-the-money options means my breakeven price is a bit lower - if shares close between the two strike prices.
Yes, I'm pretty darn long of TSLA in a way right now - despite it being a favorite short. But sometimes we have to go against the grain to eek out a profit.
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