How I Trade TSLA During Earnings Week (Without Getting Burned)
TSLA earnings week is here!
Options premiums are sky-high, headlines are flying, and retail traders are licking their chops. But if you’ve traded earnings before, you know the truth: high premium often comes with high risk. Especially in this climate, with uncertainty on tariffs, political disdain for the CEO, and absolute uncertainty around the markets, the only thing certain is the uncertainty.
But I’m still trading TSLA this week — just not in the way most people think.
🔄 The Wheel Strategy During Earnings
From my previous post, you know I trade The Wheel:
Sell cash-secured puts
If assigned, sell covered calls
If called away, repeat
Earnings week is where most people lose their profits. I certainly have. This is where wins becomes losses, and losses can become even bigger if you don’t have a plan. The Wheel Strategy gives you that plan.
⚠️ Why I Don’t Sell Puts Before TSLA Reports
Let’s break this myth down:
“But IV is elevated! Look at those juicy premiums!”
Yes — but elevated implied volatility (IV) also means elevated uncertainty. The market is pricing in a huge move either direction, and even if you’re right on direction, you can still lose due to volatility crush.
What If TSLA drops $20-$30+ on a miss? Your put gets assigned deep in the red.
What If TSLA rips up $30-$40? You made $200 while others made $2,000.
Either way, you’re trading on hope and not process.
So here’s what I do instead:
📅 Step 1: Wait Until After the Earnings Reaction
I don’t touch puts on TSLA until after the earnings report drops. Why?
I want the IV crush to settle
I want the direction to be clear
I want to see how the market reacts
I’ll wait until the following afternoon to enter a new Wheel position once TSLA reports earnings (after-market on Tuesday). Mornings following earnings are volatile and it tends to settle a few hours after open from my observations
🧠 Step 2: Analyze the Setup — Support Zones & Delta
Once the dust settles, I’ll analyze:
Where is support forming?
How far below current price can I sell a put and still get paid?
Is the 30–40 delta put giving me >1% return for the week?
🧾 Example Trade Setup (Post-Earnings)
TSLA reports Tuesday after close. Here’s how I might trade it:
Wednesday morning:
TSLA currently trading at ~$235 (at the time of this post). If it stays here…
Support looks to be around $215. I’ll sell a $210 (giving myself some buffer) put expiring this Friday for $4.00 → $400 premium
Collateral: $21,000
If assigned, I’m happy to own shares at that discount
If not, I keep the premium and wait for next week
If I get assigned:
I turn around and sell a $225 covered call ($15 above my strike price) 30-45 days out for $29.25
That’s another $2,925 → total income = $3,325 in 4-5 weeks in premiums alone. This doesn’t account for TSLA hitting $225+ and getting called away, which can be another $1500 in gains!
🔁 What I do if TSLA Moves Fast
Sometimes TSLA rips or dips before expiration. We all have seen this before. Before the Wheel, I would panic, take losses and justify that I’d make it back up in the gains. Then I’d exit my position too early and have FOMO. Now, that’s no longer the case.
Here’s my decision flow:
🔄 If it rips upwards, great! My cash-secured puts are in the green. I would then take early profits if I’m up 70–80%. I’d continue this cycle if I want to own the stock, or look for the next trade. Celebrate the win!
🔻 If the stock moves down, you can do one of two things: Nothing, or roll the position.
Remember, I’m only doing this on stocks I want to own! Earlier in my example, I checked support levels already and decided that I’m okay with owning the stock at this level. I even chose a strike price even lower than that in case it breaks that support level.
You can also roll the position, essentially, closing out the previous position and into a new one, potentially increasing gains. I would not recommend this, however, as this gets into “day-trading” territory. I want this to be as thoughtless, emotionless, and simple as possible.
📉 If assigned, focus on managing the covered call, and not revenge trading. Stick to the plan!
💬 Final Thoughts
Earnings week doesn’t have to be wild. I still trade TSLA (and my other favorite tickers) — I just wait until the dust settles.
The wheel strategy helps me:
Stay consistent, calm, and removes emotion from my trades.
I avoid unnecessary risk. When you have the collateral to cover, it doesn’t feel like a gamble.
I generate 1–3% of my portfolio, and I earn monthly income on a name I actually want to hold
I hope this helps! Happy earnings day/season traders!
Until next time,
– HL Financial Strategies
Disclaimer:
The content shared by HL Financial Strategies is for educational and informational purposes only. I am not a licensed financial advisor, tax professional, or investment expert. The strategies and opinions shared here are based on my personal experience as a retail trader and are not intended as financial advice.
Trading options involves significant risk and may not be suitable for all investors. Always do your own research and consult with a qualified financial professional before making any investment decisions. Past performance is not indicative of future results.