My core TSLA holdings are in shares and calls purchased awhile ago which I don't trade. However, I want to continue investing in TSLA even at elevated volatility and prices, without incurring too much risk. The high implied volatility has made naked calls too expensive, so calls spreads have been my solution to making high premiums work in my favor. Everyone knows that premiums for naked calls are expensive now, which hurts ROI. One way to make high IV work is to write covered calls and naked puts. However, these have lower returns than I like, so I'll compare naked calls to call spreads instead. Case 1: Out of the money calls vs call spreads For a naked OTM call, I'll use the Jan 2022 1500c that's around $150. Breakeven at expiration is SP $1650. If TSLA goes to $2000, ROI is 230% and $2500 returns 570%. Compare that to a Jan 2022 1300/1500c spread which costs about $30. Breakeven at expiration is only $1330 and ROI at $1500 is 560%. In other words, the spread at $1500 gives the same return as a naked call at $2500. The advantage of naked calls is no limit on the upside, but essentially you can look at this as a tradeoff - giving up the gains for 500% and higher for a much lower bar of getting 500% returns. Case 2: In the money calls vs spreads For a naked in the money call, a Jan 2022 700c is $395. Breakeven at expiration is SP $1095. If TLSA hits 1500 at expiration, the profit is 100%. If SP remains at $935 in 1.5 years, the net is -40%. The high option premiums kill anything less than solid gains. Compare that to a Jan 2022 700/800c spread for about $50. Breakeven at expiration is SP $750. In other words, if TSLA is 20% *lower* at expiration, this breaks even. If TSLA is *lower* by 15% at expiration($800), ROI is 100%. With a call spread, TSLA only needs to be $800 or higher at expiration to net 100%, vs the $1500 for the naked call. Other thoughts I've been playing with strangles and rotating buy/sells with spreads, and find they suit my style. By no means am I an expert on all things options, but spreads have definitely been growing on me. If you've been doing interesting things with them, I'd love to hear about it.