---
type: "Topics"
locale: "en"
url: "https://longbridge.com/en/topics/25812857.md"
description: "Is Turbo Covered Call a good strategy?@Value & Investment @SpaceM Taking the closing data of $Tesla(TSLA.US) on November 29 as an example, the closing price is 345.Portfolio:- Hold 100 shares of the underlying stock- Long 1 TSLA 250321 345 call (cost 4400)- Short 2 TSLA 250321 410 calls (income 2080*2)From the above portfolio, it can be seen that the options are almost break-even.## Hold until expirationSituation 1:After expiration, if the stock price is below 345, all 3 options expire worthless, and the loss is calculated based on 100 shares of the underlying stock.Situation 2:After expiration, if the stock price is between 345-420, the 345 long call will generate a profit close to that of 100 shares of the underlying stock, while the two 420 short calls expire worthless. At this point, this bullish combination acts like it has a turbo, and combined with 100 shares of the underlying stock will generate 2 times the profit. This is the ideal situation.Situation 3:After expiration, if the stock price is above 420, the 345 long call will generate partial profit (420-345), while the profit above 420 is offset by one 420 short call, and the 100 shares of the underlying stock will also be exercised and sold at 420, resulting in a final profit of (420-345)*200=approximately 15,000. If Tesla's stock price is above 495 at this time, the portfolio's return will be worse than just holding 100 shares of the underlying stock, resulting in a missed opportunity.## Timing to close the call option before expirationThis situation lacks experience, firstly because timing is difficult; if one can time it correctly, ordinary stock trading can yield 100% profit; secondly, because there are short call options involved, improper operations can pose significant risks. Therefore, this situation will not be discussed further."
datetime: "2024-11-30T05:26:04.000Z"
locales:
  - [en](https://longbridge.com/en/topics/25812857.md)
  - [zh-CN](https://longbridge.com/zh-CN/topics/25812857.md)
  - [zh-HK](https://longbridge.com/zh-HK/topics/25812857.md)
author: "[资深韭菜](https://longbridge.com/en/profiles/91.md)"
---

# Is Turbo Covered Call a good strategy?@Value &…


### Related Stocks

- [TSLA.US](https://longbridge.com/en/quote/TSLA.US.md)

## Comments (15)

- **空空郎君 · 2024-12-01T15:17:55.000Z · 👍 1**: This strategy of yours cannot guarantee the preservation of principal, making it unable to withstand bear markets and only applicable during bull markets.For example, if the U.S. stock market enters a bear market lasting one to two years, and Tesla (TSLA) experiences continuous declines during that 
  - **资深韭菜** (2024-12-02T02:24:36.000Z): The impact of Tesla's continuous two-year decline is that holding 100 shares will result in losses, and the premiums for both selling calls and buying calls will continue to drop. Should we close the 
  - **空空郎君** (2024-12-02T04:10:52.000Z): Then how do you know how long the decline will last? How much will it fall? If you buy 100 shares and get trapped, when will you cut your losses? Are you just gonna tough it out indefinitely?
  - **资深韭菜** (2024-12-02T04:15:10.000Z): Well, I held on from 250 all the way down to 100 lol
- **噜噜的交易员 · 2024-11-30T15:25:50.000Z**: If selling two calls, one of them is a naked short, Longbridge doesn't seem to allow naked short selling huh 🤔
  - **空空郎君** (2024-12-01T14:06:08.000Z): If funds are sufficient, it can be used as margin collateral.
  - **噜噜的交易员** (2024-12-02T05:58:59.000Z): 👌
- **复利-归因 · 2024-11-30T15:07:50.000Z**: 1
- **FridaMoLi · 2024-11-30T12:25:33.000Z**: Futu's bar
- **价值&投资 · 2024-11-30T11:22:47.000Z**: Never done anything so meticulous before
- **鼻子好酸 · 2024-11-30T05:47:34.000Z**: Where did you get this custom strategy?