Selling Weekend Puts

Selling a series of cash-secured puts over the weekend:

Both expire on 9/27 and are 5% positions:

TSLA $330 @ $2.85

COST $315 @ $1.72

With volatility so elevated, one way to take advantage of it is to sell options. I prefer to sell out-of-the-money puts, but you could sell calls against your long positions. If stocks don't fall over the weekend, the puts will decrease in value as a few days of premium disappears/gets burned off.

Setting the right strike price is the key to this strategy. You want the options to expire worthless, so going deep in-the-money is the key. Just deep enough to justify putting up the cash, but no so deep that the risk isn't worth the reward. 

Hopefully I've struck that balance with these trades.

And, yes...I'm aware that selling puts sort of makes me long of the stock. Like I'm now "long" of TSLA at $330/share - which is 24% below today's price.

**I might cover these today, if we rally hard...but it's unlikely.**