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Covered calls on Tesla stock offer steady income but cap upside potential, says investor Austin Hankwitz.

Market News
15 May 2026
24/7 Wall Street
View Source
Neutral
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Investor Austin Hankwitz highlights covered calls as a simple options strategy to generate steady income by selling call options on Tesla shares he owns. By selling the right to buy Tesla stock at a higher price, he earns premiums, which provide cash flow even if the stock price stays below the strike price. The trade-off is that if Tesla's price surges past the strike, the upside gains are capped. Tesla's high volatility and lack of dividends make it a popular choice for this strategy. Covered-call ETFs offer a hands-off alternative for investors who want income without managing contracts themselves.

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