Stock Goes Up—Am I Losing Money? Or Did I Just Make $23,000?

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Stock traders often believe that if a stock price rises above their strike price in an options trade, they are losing money. But is that really true?

In today’s post, I’ll break down a real trade I made on Tesla, show you exactly how I made $23,000 in profit, and help you understand why selling deep in-the-money (ITM) covered calls is a game-changer for consistent income.

Let’s debunk some myths and look at the numbers.

Tesla Earnings: A Wild Ride

Yesterday, Tesla reported earnings. The numbers missed expectations, and after hours, the stock dropped significantly. But then something interesting happened—it rebounded and even hit $412 this morning before settling around $395.

Most traders panic when earnings cause wild swings, but I don’t.

Why?

Because I’m not just trading Tesla—I’m selling options and collecting premium (the "juice").

Step-by-Step Breakdown of My Tesla Trade

Selling Covered Calls for Premium

Yesterday, when Tesla was trading around $392-$393, I:

✔ Sold 45 covered calls at a $370 strike price
✔ Collected $3,500 per contract
✔ Of that, $1,200 per contract was pure premium (juice)
✔ The rest ($2,300 per contract) provided downside protection

This gave me a total cushion of about $35 per contract.

Stock Moves Up—Am I Losing Money?

✔ This morning, Tesla opened at $395—higher than my $370 strike price.
✔ The question I always get: "Aren’t you losing money since it's over your strike?"
✔ The answer? NO.
✔ My base position also increased in value, which offsets the short call position.

✔ Total profit on the trade: $23,000.

Let’s break it down further.

Why Do People Think I’m Losing Money?

Many traders believe that if a stock rises above their short call strike price, they are automatically at a loss. But here’s why that thinking is wrong:

✔ The base position gains value as the stock price rises.
✔ The option premium decays, adding to profits.
✔ The real risk is downside movement, not upside gains.

The key is understanding how premium (juice) works.

Biggest Misconceptions About This Strategy

Misconception #1: If a stock goes above my short call strike, I’m in trouble.
Reality: My base position also increases in value, offsetting the option loss.

Misconception #2: My stock will be taken away if I sell deep ITM calls.
Reality: I’ve held Tesla for 4.5 years using this strategy—it’s never been assigned.

Misconception #3: I need to time the market perfectly to make money.
Reality: I don’t need to predict stock direction—I make money every week from the juice.

How You Can Apply This Strategy

1️. Pick a quality stock (like Tesla) with high options premiums.
2️. Sell deep ITM covered calls to collect premium and downside protection.
3️. Roll positions as needed to optimize for volatility.
4️. Focus on weekly/monthly income, not just stock price movement.

This approach eliminates fear and gives you a steady cash flow.

Final Takeaway: Stock Goes Up, So Does My Profit

✔ Tesla rose after earnings.
✔ My covered call position didn’t hurt me.
✔ My total profit: $23,000 in one day.
✔ This strategy works even if the stock moves against me.

If you still believe that a rising stock means you’re losing money on covered calls—just look at my account balance.

Life-Improving Tips: How This Strategy Can Change Your Life

Many traders spend hours glued to charts, trying to predict price movements. This strategy frees you from that.

Consistent Income Without Stress
Instead of guessing market direction, you’re collecting income every week.
More Freedom, Less Screen Time
This method takes 20-30 minutes a week—not all day.
No More Emotional Trading
You’re no longer worried about market crashes or missing an entry.
Protects Your Portfolio from Losses
By selling deep ITM calls, you have built-in protection—while still making money.
Grows Your Wealth Steadily
With 2-4% returns per month, your portfolio can double every 2-3 years.

This isn’t just a trading strategy—it’s a life-changing wealth-building system.

Frequently Asked Questions (FAQs)

Q: What if the stock goes way above my strike price?
A: That’s fine! Your base position gains value too, offsetting any short call movement.

Q: How often do I need to adjust trades?
A: About once a week—this is not a full-time job.

Q: Is this risky?
A: Less risky than traditional stock trading because the premium acts as a cushion.

Q: Can I do this with a small account?
A: Yes! Even $10,000-$20,000 accounts can use this strategy.

Q: What happens if I get assigned?
A: You can simply roll your position and continue collecting juice.

Call to Action: Want to Learn More? Take Action Now!

If you’re ready to start making 2-4% per month in passive income, here’s how:

Step 1: Subscribe to My Free Newsletter
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Step 2: Watch My Free Training
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Step 3: Join My Cash Flow Machine Program
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Conclusion: The Power of Selling Covered Calls for Income

Many traders focus solely on stock price movements, obsessing over whether a stock goes up or down. But the truth is, you don’t need to predict the market to make consistent profits.

By selling deep in-the-money covered calls, you:

✔ Collect steady income (the "juice") regardless of short-term stock movements
✔ Build downside protection against market drops
✔ Avoid emotional trading and market guessing
✔ Generate 2-4% monthly returns—potentially doubling your portfolio every 2-3 years

In the Tesla trade I just broke down, I made $23,000 in one day, even though the stock moved higher than my strike price. Why? Because I’m not just holding stocks—I’m creating a system for passive income.

Stock Goes Up—Am I Losing Money? Or Did I Just Make $23,000?

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