Stockchase Opinions

Larry Berman CFA, CMT, CTA Tesla (TSLA) Yield Shares Purpose ETF YTSL-O DON'T BUY Jul 14, 2025

Puts on a covered call options strategy to extract some extra income out of TSLA. He has some general thoughts on this and similar products. Why are you investing in TSLA? You're investing in it for growth. If you really believe in TSLA, why do you want to give up that growth by putting a covered call on it? Go to the stock itself to play it for maximum growth.

But at this moment, he hates the value of TSLA, grossly overvalued. Probably worth half or less than what it trades at today. He wouldn't touch it with anybody's money.

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RISKY

Holds a single stock, cover-write a third of the portfolio, which gives you income. The more volatility, the more income, and Tesla is volatile. But this very risky. A small holding in your portfolio, at best.

DON'T BUY

New thing that's come out, a single-stock ETF that you write options on. No diversification. You collect the premium from the options (which can be very good), but it's for people who want more risk. Not for him.