TSLL: Buy For Aggressive Quadruple Income Play With TSLA Exposures

seekingalpha07-23

MicroStockHub Introduction Tesla is scheduled to announce Q2 earnings on July 23 after the market close. The stock volatility has risen sharply with its implied volatility almost twice as in January. ...

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The stock volatility has risen sharply with its implied volatility almost twice as in January. ...</p>\n\n<a href=\"https://seekingalpha.com/article/4705757-tsll-buy-for-aggressive-quadruple-income-play-with-tsla-exposures\">Source Link</a>\n\n</div>\n","source":"seekingalpha_fund","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>TSLL: Buy For Aggressive Quadruple Income Play With TSLA Exposures</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nTSLL: Buy For Aggressive Quadruple Income Play With TSLA Exposures\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-07-23 21:55 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4705757-tsll-buy-for-aggressive-quadruple-income-play-with-tsla-exposures><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>MicroStockHub Introduction Tesla is scheduled to announce Q2 earnings on July 23 after the market close. The stock volatility has risen sharply with its implied volatility almost twice as in January. ...</p>\n\n<a href=\"https://seekingalpha.com/article/4705757-tsll-buy-for-aggressive-quadruple-income-play-with-tsla-exposures\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU2357305700.SGD","symbol_name":"Allianz Global Artificial Intelligence ET H2-SGD","start_time":0,"source_url":"https://seekingalpha.com/article/4705757-tsll-buy-for-aggressive-quadruple-income-play-with-tsla-exposures","article_id":"2453307230","we_media_id":null,"thumbnails":["https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1503371245/image_1503371245.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2453307230","pubTimestamp":1721742921,"columns":[],"sourceInfo":{"source_id":"seekingalpha_fund","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"MicroStockHub Introduction Tesla is scheduled to announce Q2 earnings on July 23 after the market close. The stock volatility has risen sharply with its implied volatility almost twice as in January. The volatility is back with TSLA, is it bad or good news to investors?The recent bull run from TSLA has c","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU2357305700.SGD":"Allianz Global Artificial Intelligence ET H2-SGD","LU1861559042.SGD":"日兴方舟颠覆性创新基金B SGD","LU1429558221.USD":"Natixis Loomis Sayles US Growth Equity RA USD","BK4550":"红杉资本持仓","TSLY":"YIELDMAX TSLA OPTION INCOME STRATEGY ETF","LU0053666078.USD":"摩根大通基金-美国股票A（离岸）美元","LU0823411888.USD":"法巴消费创新基金 Cap","LU1435385759.SGD":"Natixis Loomis Sayles US Growth Equity RA SGD-H","LU0082616367.USD":"摩根大通美国科技A（dist）","BK4551":"寇图资本持仓","LU1551013342.USD":"Allianz Income and Growth Cl AMg2 DIS USD","FDN":"First Trust Dow Jones Internet I","LU0056508442.USD":"贝莱德世界科技基金A2","IE00B1XK9C88.USD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A\" (USD) ACC","LU0719512351.SGD":"JPMorgan Funds - US Technology A (acc) SGD","LU0820561909.HKD":"ALLIANZ INCOME AND GROWTH \"AM\" (HKD) INC","LU2249611893.SGD":"BNP PARIBAS ENERGY TRANSITION \"CRH\" (SGD) ACC","LU1914381329.SGD":"Allianz Best Styles Global Equity Cl ET Acc H2-SGD","SG9999015945.SGD":"LionGlobal Disruptive Innovation Fund A SGD","BK4099":"汽车制造商","BK4511":"特斯拉概念","BK4548":"巴美列捷福持仓","TSLS":"Direxion Daily TSLA Bear 1X Shares","LU2063271972.USD":"富兰克林创新领域基金","LU2756315664.SGD":"ALLIANZ INCOME AND GROWTH \"AMI\" (SGDHDG) INC","SG9999015986.USD":"LIONGLOBAL DISRUPTIVE INNOVATION \"I\" (USD) ACC","LU0823414478.USD":"法巴经典能源转换基金","LU0466842654.USD":"HSBC ISLAMIC GLOBAL EQUITY INDEX \"A\" (USD) ACC","SG9999015978.USD":"利安颠覆性创新基金A","CRSH":"YieldMax Short TSLA Option Income Strategy ETF","LU0097036916.USD":"贝莱德美国增长A2 USD","LU0689472784.USD":"安联收益及增长基金Cl AM AT Acc","LU2326559502.SGD":"Natixis Loomis Sayles US Growth Equity P/A SGD-H","LU2087621335.USD":"ALLSPRING GLOBAL FACTOR ENHANCED EQUITY \"A\" (USD) ACC","TSLA":"特斯拉","LU0198837287.USD":"UBS (LUX) EQUITY SICAV - USA GROWTH \"P\" (USD) ACC","TSLL":"Direxion Daily TSLA Bull 2X Shares","LU1720051017.SGD":"Allianz Global Artificial Intelligence AT Acc H2-SGD","BK4585":"ETF&股票定投概念","BK4534":"瑞士信贷持仓","LU1839511570.USD":"WELLS FARGO GLOBAL FACTOR ENHANCED EQUITY \"I\" (USD) ACC","BK4555":"新能源车","LU0820561818.USD":"安联收益及增长平衡基金Cl AM DIS","LU1861558580.USD":"日兴方舟颠覆性创新基金B","BK4533":"AQR资本管理(全球第二大对冲基金)","LU1551013425.SGD":"Allianz Income and Growth Cl AMg2 DIS H2-SGD","LU2602419157.SGD":"HSBC ISLAMIC GLOBAL EQUITY INDEX \"AC\" (SGD) ACC","LU2756315318.SGD":"ALLIANZ INCOME AND GROWTH \"AMG\" (SGDHDG) INC A","LU0348723411.USD":"ALLIANZ GLOBAL HI-TECH GROWTH \"A\" (USD) INC","LU0943347566.SGD":"安联收益及增长平衡基金AM H2-SGD"},"translate_title":"TSLL：买入TSLA敞口，实现激进的四倍收入","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"TSLY":1,"TSLS":1,"TSLL":1,"TSLA":1,"CRSH":1,"FDN":0.9},"content_text":"MicroStockHub Introduction Tesla is scheduled to announce Q2 earnings on July 23 after the market close. The stock volatility has risen sharply with its implied volatility almost twice as in January. The volatility is back with TSLA, is it bad or good news to investors? No one really knows for sure until the earnings report is out. However, there is a way to manage the volatility and potential gain profit from it and I'll show how to deploy four ETFs with Tesla exposures to form an income quadruple play. One of them is Direxion Daily TSLA Bull 2X Shares ETF (NASDAQ:TSLL). It is leveraged ETF on the long side. It is a good speculative buy if you are bullish on Tesla's near term outlook, which is the main trending market view at the moment. TSLL has an inverse sister ETF, Direxion Daily TSLA Bear 1X Shares ETF (TSLS). TSLS can be used to hedge the long TSLL position. The duel play will work effectively for the post-earning volatility collapse. In addition, YieldMax TSLA Option Income Strategy ETF (TSLY) is expected to take advantage of recent surge of the volatility by offering the super dividend of $1.0035 (estimated) for the coming distribution. To hedge TSLY positions, there is also a short sister ETF, YieldMax Short TSLA Option Income Strategy ETF (CRSH), that can be used for the next 2 weeks when CRSH will also be offering dividend of $0.8150 on the same day as TSLY. With TSLL and TSLS both issuing sporadic dividend at 2.3% and 4.1% respectively, having 4 ETFs in the portfolio can create highly attractive income streams while reducing the volatility greatly for the portfolio. ETF fund highlight TSLL and TSLS are actively managed ETFs by Direxion. The objectives and supporting strategies are pretty straightforward, as stated below: The Direxion Daily TSLA Bull 2X Shares and Direxion Daily TSLA Bear 1X Shares seek daily investment results, before fees and expenses, of 200% and 100% of the inverse (or opposite), respectively, of the performance of the common shares of Tesla, Inc. (TSLA). The top holdings are shown as below. Note that the TESLA SWAPs allow the fund to implement the targeted daily price movement without owning the assets and minimize the direct cash outlay, which is held in the short term treasure bonds instead. Top 10 Holdings of TSLL (left) and TSLS (right) - from marketchameleon.com  The focus on \"daily result\" makes ETFs unsuitable for the traditional long positions. However owning both in the portfolio will largely offset the price movement on single direction. This type of dual play will be effective when the sharp price movement is expected in the short run, such as facing the event like earning report. TSLL is owned by many funds with solid ratings as shown below: TTSL ownership information - from Morningstar.com I have buy rating on TTSL for the bullish bias toward Tesla stock recovery. More details of TSLL will be given in the later section. Will TSLA resume a bullish long growth story? The recent bull run from TSLA has conveyed a strong market conviction about TSLA's bullish outlook and expectations. For example, the following was reported from SA: Stifel launched coverage on Tesla (NASDAQ:TSLA) for the first time, with a Buy rating and price target of $265. The firm pointed to the electric vehicle maker's vast global supply chain coupled with internal manufacturing support cost advantage and strong margins. I do not see anything new from the above bullish view. The same argument could be said, without any change, back two 2 years ago when TSLA started to tank to 1/3 of the peak price. It was probably fine to use it 3 months ago when TSLA started to move up by $100 dollars. It'd suspect the narrative to be very much applicable perhaps 2 years later. The bears seem to bring more numbers. One SA analyst stated the following skepticism \"Tesla will be a leader in robots and robotaxis and thus become a $10+ trillion company, or is Elon Musk saying that robots could make Tesla a $25 trillion company?\" I believe that the same argument could be used again and again, as $10T or $25T is so large that the life of the predication could last much longer without being invalidated. I'll be down to the earth and be very happy to see TSLA become a 1.5T company. This means that TSLA stock price will have be doubled from the current level. Indeed I am currently have a bullish bias on TSLA due to multiple growth opportunities in Robotaxis (worth $ 500B), robotics (Optimus robots), Tesla Energy (\"Tesla’s Visionary Leap into Energy\") , and the EV recovery (\"EV Sales in Q2 Mark New Record\") . I strongly believe that the company will just need one breakthrough to reach 1.5T and the odds looks very promising with 4 of them on going right now. Build a starting portfolio with TSLA exposures and super high income streams. As a starter, I am only committed a wait-and-see approach and I want to get paid during the waiting process via an income streams. I'll start with TSLL positions due to the daily-double nature. The investment will be only half of what's needed to acquire TSLA shares directly. The income streams from TSLL include 1) The dividend 2) Selling out-of-money covered calls weekly, which are expected have higher premiums due to the extra volatility from its leverage nature. It can be seen from the following option chain that the weekly call options are traded with good volumes, and close price spreads between ask and bid. Notice that VI has reached over 250% for the earning week. The premium of $15 Call is equivalent to about 0.7% of income in just one week. TTSL Weekly Call Option Chains - from barchart.com #1 TSLL - TSLL will be used as starting position for growth-driven price appreciation. Note that TSLL can be replaced by the TSLA long position when the further conviction will be accomplished on the long side.  Market Cap: $2.0 B. It is a large size for ETF. Volume: 32.7 M. TSLL is a heavily traded stock with huge liquidity. IV (30-Day): 120.6 . As expected IV is 2X TSLA's 60. IV Rank (30-Day):94%. IV is elevated to the extreme level when approaching the earning day. Yield (estimated): 2.3%. It is a non-qualified dividend. The amount and distribution vary from quarter to quarter.  #2 TSLS - It is the short ETF with 1X effect. It is used for hedge purposes.  Market Cap: 52.4 M . It was incepted on May 1, 2024. Volume: 2.7 M. It is a substantial volume given its micro sized market cap. indicating big concerns over Tesla's Q2 earnings. IV Rank (30-Day): 93%. It is more elevated than TSLY. It could indicate greater concerns over Tesla's Q2 earnings. Yield (estimated): 4.2%. It is not a Non-qualified dividend. The amount and distribution vary from quarter to quarter.  The protection of the dual play can be illustrated by the following performance comparison. In the case of extreme volatile movement on April 22, the total assets of equal weight on TSLL and TSLS, with the dividend reinvested, will be slightly up while owning TSLA alone will see -47% decline in value. One-Year Total Return with TSLL, TSLS and TSLA - from SA charting However, it can be seen also that the total value of the dual play will be worse than TSLA-alone if the TSLA's price has been stuck in a small range like (less than 5%) for a year-long period. This is where selling covered calls on TSLL volatile shares will help improve the total return. #3 TSLY. It is one of the popular YieldMax Option ETFs, largely due to the volatility with the underlying TSLA and the huge interests in trading it. TSLY is a good income play with the ultra yield shown below.  Market Cap: 774.0 M. The ETF has been gaining popularity since inception in November of 2022. Volume: 790 K. It is a good trading volume. IV Rank (30-Day): 88%. It is elevated due to the upcoming Q2 earning report. Yield (estimated): 66.0%. Monthly payment rates expect to be high but vary with the volatility levels and option pricing.  #4 CRSH It is a new ETF from YieldMax, designed to retrieve income from short options of TSLA. It can be viewed as an inverse ETF to TSLY, with \"indirect inverse exposure\" to TSLA. Similar to TSLL and TSLS dual play, CRSH and TSLY can be paired together. The net effect is expected to be better since the goal is to collect the income from their ultra distributions.  Market Cap: 8.9 M. CRSH was incepted on May 1, 2024 and it is a brand new ETF. Volume:21 K. The volume and the market cap together can be used as gauge for short interests in the near term. IV Rank (30-Day): 93%. It is more elevated than TSLY. It could indicate greater concerns over Tesla's Q2 earnings. Yield (estimated): 71.4%. Similar to TSLY, the high monthly payment rates also vary with the volatility levels and option pricing.  Risks & caveats TSLL and TSLS are leveraged and inverse ETFs respectively. There is a regulatory reminder to retail investors from FINRA to address the associated market complexity. Investors should read it before buy TSLL and/or TSLS shares. EFT Factsheet also offers a detailed statement about the high risky nature of TSLL and TSLS, which should be fully understood before making investment decisions. TSLY and CRSH are the option income ETFs for the same underlying (TSLA) but with the composite direction. A biased weight toward one direction over the other requires the investors to use their own discretions. Caution is needed when committing huge amount of the capital in these funds. This is why the duel play and the quads could be a safer approach overall. Conclusion  TSLA has been proven to be a high volatile stock, which is partly reflecting the huge popularity with its shares in the market, which has shown renewed bullish sentiment on the stock. To take the advantage, TSLL can be bought to create initial long position, coupled with selling weekly covered calls to create a reliable income streams. TSLS can be used to hedge the long position under the high volatile conditions. Both TSLL and TSLS offer dividends which will help improve the total return. In addition, TSLY and CRSH duel play could be deployed to boost the income significantly. The resulting quadruple income play is for aggressive income investors who seek to maximize the profit off heavy TSLA exposures and reduce the overall volatility of the portfolio.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":1,"commentSize":0,"repostSize":0,"favoriteSize":1,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2453307230"}