$100k lying around in the bank. Looking to DCA TSLA or sell cash covered put (1 year). Which strategy is better for 2022?

Hello there,

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I love how you mentioned cash covered put. It's one of my favourite passive income methods, right after the covered call.

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Cash covered put have unlimited downside, and limited upside, hence diversification and safety is extremely important.

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TSLA is at an extremely high valuation now with little profits to justify its value. Even Elon and cathie wood is cashing and selling shares for profit.

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I would suggest diversification, such as sell cash covered put on S&P 500 index instead, such as SPY ETF. Or covered call on S&P 500 ETF.

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Cheers!

Unfortunately you might not be able to get the crystal ball answer you may seek.

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DCA will be better if TSLA increases in price while CSP will benefit from a ranging/sideway market