Tesla options strategy targets Cybercab-driven upside

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Tesla options & Cybercab upside

Highlights

YieldMaxETFs' Mike Khouw recommends a Tesla options strategy: buy December 390 calls at $32.50, sell Oct. 23 weekly 425 calls at $9.50, and Oct. 23 weekly 330 puts at $7.30 for a $15.70 net debit.
The trade benefits if TSLA trades between 330 and 425 through Oct. 23, allowing short options to expire and reducing cost basis of the December call while maintaining upside exposure.
Cybercab's limited rollout and lack of regulatory approval constrain Tesla in the autonomous-vehicle space relative to Waymo, which already achieves higher scale and utilization.

Options structure built around near-term Tesla momentum

As reported by CNBC, YieldMaxETFs strategist Mike Khouw says the visible rollout of Tesla's wheel-less Cybercab could become a catalyst for a fresh re-rating in the shares, prompting an options strategy that pairs long exposure with premium collection.

The trade calls for buying TSLA December 390 calls at $32.50, while selling the Oct. 23 weekly 425 calls at $9.50 and the Oct. 23 weekly 330 puts at $7.30, for a net debit of $15.70. Khouw argues that Tesla's strongest technical indicators over the past year, MACD, DMI and RSI, are all bullish now, supporting the purchase of a longer-dated call.

He says the short-dated strangle helps offset time decay on the December call by bringing in $16.80 in premium. If Tesla trades roughly between 330 and 425 into Oct. 23, the short options expire and leave the December call with a lower effective cost basis, while giving room to roll short positions depending on the stock's level at that point.

Launch constraints and sector implications

A move toward 390 to 410 is presented as the base case for the position, with the long call retaining time value if the short options expire. A sharper rally through 425 would still favor the upside because of the December calls, although it would require a decision on the short call, either to buy it back, roll it higher and further out, or accept assignment.

The downside risk sits below 330, where the short put comes into play and could force stock purchase at the strike price. Khouw notes that this financing method ties up substantial cash, but it also gives traders ownership at a discount to the prevailing market price while preserving upside exposure through the longer-dated call if Tesla rebounds.

The broader autonomous-vehicle context remains competitive. The Cybercab launch is limited and uses a small unsupervised fleet, while Waymo already has greater scale and trip volume, and Tesla still needs wider regulatory approval and stronger utilization to improve unit economics for a two-seat vehicle with no cargo capacity.

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