Tesla’s share price has bounced back nicely since hitting lows in April, and traders are jumping on an “Iron Condor” options play that could pocket you up to 40% on your risked capital! 🔥

What’s an Iron Condor? 🤔

An Iron Condor is a neutral options setup where you:

1. Sell a put spread (sell one out‑of‑the‑money put, buy a lower strike put)
2. Sell a call spread (sell one out‑of‑the‑money call, buy a higher strike call)

If the stock stays between your two “short” strikes at expiration, you keep the premium. If it flies wildly beyond either edge, your losses are capped by the farther “long” leg.

📚 Learn more: Investopedia – Iron Condor Strategy

Tesla’s Specific Setup 🏎️

For the June 20 expiration, one common structure is:

• Sell the 270‑strike put & Buy the 265‑strike put
• Sell the 390‑strike call & Buy the 395‑strike call

This nets you roughly $145 in premium. Your max risk? $355 (that’s the $5 width of each spread minus the premium). If TSLA stays between $270–$390, you lock in about 40.8% return on risk!

Why It Makes Sense Now ✅

Tesla’s recent stock performance has shown signs of stabilization after a period of volatility. The company’s earnings report has been released, eliminating immediate earnings risk, and the stock holds a Composite Rating of 74 from IBD . These factors contribute to the suitability of an Iron Condor strategy, as traders can capitalize on the anticipated sideways movement.

With global macro trends pointing to a more range‑bound market, it’s worth taking a fresh look at what’s shaping the world economy before you deploy any options strategy.

1. Reduced Volatility Risk – Tesla’s earnings are behind us, so there’s less surprise risk left in the near term.
   
2. IBD Composite Rating – TSLA sits at a solid 74 on Investor’s Business Daily’s scoring system, hinting at relative strength.

Key Risks & Management ⚠️

• Big Breakouts/Breakdowns: If Tesla rockets past $395 or plunges below $265, losses kick in.
  
• Adjustments Matter: Consider rolling your spreads or tightening the wings if the stock drifts close to your short strikes.
  
• Market Movers: Watch out for macro headlines, product launches, or regulatory news that could spark sudden moves.

And remember—you don’t have to live on the edge: check out our guide on embracing soft saving to see how setting aside small buffers can help you handle unexpected losses.

Final Takeaway 🎯

An Iron Condor on Tesla right now offers an attractive 40%+ return potential if TSLA drifts sideways into June. But remember, define your risk, stay vigilant, and have a plan to adapt. Options can be powerful—but only when handled with respect!

For a concise, up‑to‑date roundup of global market moves that might affect your positions, head over to the global financial latest news guide.