I have invested my RRSP (retirement account) by myself as want to put my money where my beliefs are, and Tesla takes up about 1/4 of my eggs, and by far the largest portion. My strategy has been buying on some dips, and selling on some highs (not working out so well).
Sorry, don't have time to do an options writeup either (am I'm new to this thread), but IMHO, you have way too much in what I consider to be a speculative and somewhat volatile stock. I'd lighten up on your position and diversify into some low beta high-dividend yielding stocks where the dividends are safe (ones where they're not likely to be cut).
All it takes is some bad news or a bad earnings report/not beating expectations (or not by enough) to make TSLA plunge.
I am new to stock trading period and jumped right into basic calls. I hold some TSLA stock but most of my profit has been from buying calls just out of the money after a large drop that I feel is unwarranted. When I first started I bought the options out as far is I could so I would have some protection .... my advice is to buy one or two calls just out of the money the next time you want to add on a dip .... then when the stock recovers sell them .... if you lose the money it was only one or two options .... and I think you get more upside potential. you can afford to "miss" since its a small portion of investment but when there is a big spike you are rewarded much more than by only holding stock. DISCLAIMER: I have very little experience in the market.
Be careful about any long positions as its value erodes over time (negative theta). You've probably noticed. And, that time decay speeds up as you get closer to expiration.
Also, on many stocks, the implied volatility rises right before the earnings announcement date and collapses right after the announcement. (Not sure about TSLA since I don't follow its options. Easy enough to find out.) Even if the stock doesn't move, that you could suddenly cause the value of your long options to drop sharply.
(I used to try a strat on other stocks promoted on another site where one would buy strangles or straddles (basically long puts and long calls) prior to earnings announcements to take advantage of rising IV and selling after sufficient gain. The strat was a battle between rising IV and negative theta. Most times, you didn't want to hold the position thru earnings because is the move was insufficient, the value of the strangle/straddle would get crushed due to the IV crush.)
I consider myself to be a bit better than an options novice, but not by much...
I tend to make money by selling way OTM puts (below support levels) on other stocks to collect premium. I don't do it on TSLA though.
Right or wrong, I personally have a bias against simple long put or call positions due to the time decay. I prefer positions where time decay is my friend.
I made a bearish bet in FB long ago by buying a few puts many months out (expiration after some big lockups were supposed to expire). I ended up losing $.
IIRC, time decay helped kill it and the stock not moving the direction I wanted to didn't help either.
If I were to make the same bearish bet again (not knowing I was wrong), I probably should've bought a put spread instead to limit my losses/reduce my cost and to help counteract the negative theta, a bit.
