October 26, 2026

I started the trading week by adjusting my existing Tesla (TSLA) covered call.

This transaction allowed me to raise my potential stock selling price by $5 per share while collecting additional option premium.

Here's the trade and the reasoning behind it.

Underlying: Tesla (TSLA)
Shares owned: 100

Bought to close: 1 October 28 $377.50 call
Sold to open: 1 November 6 $382.50 call

Net roll credit: $1.65 per share
Total option credit: $165 before transaction fees

I originally purchased my 100 Tesla shares at $357.93 per share.

I've been managing the position through covered calls, collecting premiums while looking for opportunities to improve my potential selling price.

Last Friday, I rolled my $377.50 call from October 23 to October 28, collecting $409.67 in net option proceeds.

Today, another opportunity presented itself.

Rather than simply extending the existing call at the same strike, I was able to move the strike up from $377.50 to $382.50 and still collect a credit.

That accomplishes two things:

The combined improvement in the assignment outcome from today's adjustment is $665 before fees, assuming assignment at the respective strikes.

My original stock purchase price was $357.93.

At the new $382.50 strike, assignment would generate a stock gain of $24.57 per share, or $2,457 on my 100 shares, before option premiums and transaction costs.

That's an outcome I'm comfortable accepting.

If the stock remains below $382.50 through expiration and the option expires worthless, I'll retain the shares and the net premium collected.

Of course, extending the expiration to November 6 means accepting additional time exposed to changes in Tesla's stock price.

And if Tesla rallies substantially above $382.50, the covered call limits my participation in that additional upside.

I'm comfortable with those trade-offs based on the economics available when I executed the roll.

I don't automatically roll a covered call simply because expiration is approaching.

I evaluate the available strikes, premiums, and potential assignment outcomes.

Sometimes maintaining the same strike and collecting additional premium makes sense.

Other times, an opportunity arises to increase the strike while still collecting a credit.

Today was one of those opportunities.

I raised my potential selling price, collected additional premium, and maintained a strike above my original purchase price.

That fits the income-oriented strategy I'm following.

I'll continue monitoring the position as the November 6 expiration approaches.

This alert documents my actual completed transaction and reported execution price.

Option prices, spreads, and underlying stock prices can change materially after execution. The same roll may no longer be available on comparable terms.

I don't chase trades when the economics change.

Options Income Journal documents my personal trading activity for informational and educational purposes only. It does not provide investment advice, personalized recommendations, or trading signals. Options involve risk, including assignment, limited upside, and substantial losses from declines in underlying stocks. Option credits are cash flows, not total investment profits.