Tesla stock (TSLA) has been stagnant for the last 3 months, making shorting OTM puts a profitable strategy. With TSLA at $430.27, options expiring Jan. 2 offer a 2.5% yield at the $400 put. Shorting puts has yielded 3.0% returns in the past. Analysts predict TSLA could be worth over $501 per share.

Shorting TSLA puts for Jan. 2026 continues to be a lucrative opportunity. Options expiring on Jan. 2 show high premiums for put contracts at $405 and $400 strike prices, offering yields of 2.6370% and 2.3175% respectively. Shorting both puts could result in a 2.5% yield, a profitable venture given TSLA’s flat performance.

Shorting OTM puts on TSLA presents a compelling opportunity for value investors. Despite the stock’s stagnant price, the high put option premiums allow for significant short-term gains. By shorting puts with high yields, investors can potentially outperform owning TSLA shares in the current market conditions.

Read more at Barchart: Tesla Stock Has Been Flat