Part 5/9:
Despite the success, David faced hurdles, particularly during volatile market weeks tied to earnings reports or important product announcements. By conducting a regressive analysis of Tesla's historical stock movements, he concluded that these events were often catalysts for significant price changes that could invalidate his covered call strategy.
David also shared an experience from January 2023, which proved tumultuous. After an earnings call, Tesla’s stock surged past his covered call strike prices. Despite previously established rules to avoid earnings weeks, he deviated, leading to significant losses and forcing him to confront the emotional challenges associated with breaking his established trading rules.