Tesla has been really strong recently. While AI and crypto have been experiencing sharp pullbacks, Tesla has been holding steady in a sideways trend, even showing upward momentum. The energy and sentiment are both strong, just waiting for a catalyst.

Then, last Friday, there was news that the safety driver would soon be removed, and it was clear Tesla was about to break out. I bought a short-term call option at $500 expiring in about a month at the open, and added another one when the price dipped during the session. Over the weekend, someone spotted that the safety driver was indeed gone, and on Monday, the stock took off. I waited until the option doubled at the open and sold one to break even.

The next plan is to see how things go tonight and sell the remaining option (ideally, if it surges to around $500 tonight, I’ll sell it there). The main reason is that the short-term sentiment from the recent news has already been priced in, and with upcoming CPI data, the Bank of Japan meeting, and quadruple witching day, volatility will be high. Short-term calls could suffer from significant decay if the stock drops or stays flat. I’m definitely holding the shares and even considering adding more, but Tesla always presents opportunities—there will surely be a better entry point later.

Currently, I’m 40% in shares and 15% in cash, waiting for better opportunities to add to my Tesla position (e.g., potential volatility on Friday).

$Tesla(TSLA.US)