A hidden secret of mine of how to accumulate Tesla ($TSLA) shares for free (Part 1)

This has been one of my trading secrets for years.  We all know that most of the times, $TSLA shares have been going up steadily.  So there are two ways to make money.  (1) Buy stocks or call options or (2) sell puts.

Some might say, “the call premiums are so expensive” or “the stock price is beyond what I can afford”.  And that’s correct.  They are.  So what do I do?  I sell put options way below the current stock price almost every Monday morning.

The photo above shows that when I sell 10 contracts of $850 puts expiring that coming Friday, I get about $2,360. And with that money, I buy 2 shares of TSLA.   If the price goes up, then you can buy back at a cheaper price and do it all over again and multiple times a week.  Of course, like recently, the stock price can tank a lot.  That’s the risk you have to stomach it but there are techniques out there to mitigate that.

Yes, it’s a slow process and will take time.  If you get 2 shares a week, it will take you about a year to accumulate 100 shares (Part 2 will discuss what to do once you accumulate 100 shares to accelerate further accumulation).  If you can day trade these put options and buy 4 $TSLA shares a week, then it will only take 25 weeks for you to reach 100 shares and again, my Part 2 will help you get more $TSLA shares faster.

Before you do the same, do your own DD and see if this makes sense for you. And as always stated, this is not an advice or a recommendation. Just sharing what I have done to steadily accumulate $TSLA shares for free.