Tesla Inc. released strong Q4 earnings on Jan. 28, with TSLA stock trading at $419.213 on Feb. 3. Despite a recent drop, TSLA remains attractive for investors selling short-term put options, offering an average yield of 2.50%. Analysts project revenue growth, with potential for TSLA stock to reach $500 per share.

While Tesla reported a slight decrease in Q4 revenue, its free cash flow (FCF) margins remained strong. FCF fell 30% to $1.42 billion, representing 5.75% of Q4 revenue. Analysts forecast higher revenue for 2026 and 2027, potentially leading to a market cap of $1.875 trillion, a 19.2% increase from current levels.

Shorting out-of-the-money (OTM) put options on TSLA presents an income opportunity for investors. Options with strike prices at $400 and $395 offer attractive yields of 2.63% and 2.29%, respectively. Investors can potentially achieve an average yield of 2.5% by shorting both puts, with low breakeven points and significant potential buy-in points.

Read more at Barchart: After Earnings, Tesla Put Options Offer a 2.5% Short-Put Yield for the Next Month