GraniteShares 1.25x Long TSLA Daily ETF (TSL) Covered Calls

The GraniteShares 1.25x Long TSLA Daily ETF (TSL) is a leveraged exchange-traded fund designed to provide 1.25 times (125%) the daily performance of the common stock of Tesla, Inc. (TSLA). Managed by GraniteShares Advisors LLC, the fund serves as a short-term trading vehicle for investors seeking amplified exposure to Tesla’s daily price movements without the need for a margin account. It utilizes financial derivatives, primarily swap agreements, to achieve its leveraged investment objective.

You can sell covered calls on GraniteShares 1.25x Long TSLA Daily ETF to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for TSL (prices last updated Fri 4:16 PM ET):

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Core Objective and Strategy

The GraniteShares 1.25x Long TSLA Daily ETF (NASDAQ: TSL) is a single-stock leveraged ETF that seeks daily investment results, before fees and expenses, of 1.25 times the daily percentage change of Tesla, Inc. (TSLA). The fund is designed for sophisticated investors and active traders who intend to monitor their portfolios daily. Because the fund resets its leverage every trading day, its performance over periods longer than a single day can deviate significantly from 125% of the underlying stock’s return due to the effects of compounding and market volatility.

As of April 2026, the fund maintains an expense ratio of approximately 1.15% (net of fee waivers effective through December 31, 2026). It does not hold physical shares of Tesla; instead, it enters into swap agreements with major financial institutions. This structure allows the fund to remain highly liquid, trading like a standard stock on the NASDAQ exchange, while providing a moderately leveraged alternative to more aggressive vehicles like the 2x or 3x leveraged Tesla ETFs.

Competitive Landscape

The leveraged single-stock ETF market is a specialized segment catering to high-conviction traders. TSL competes primarily with other "Bull" funds tracking Tesla, as well as broader thematic ETFs that hold heavy weightings in the EV and clean energy sectors. Its competitive position is defined by offering a "middle ground" leverage ratio (1.25x), which provides higher returns than a standard long position in TSLA but with less extreme decay risk than 2x leveraged products. In early 2026, the fund has benefited from increased trading volume as Tesla’s stock entered a period of heightened volatility following new product announcements.

Publicly traded competitors that are optionable include:

1. Direxion Daily TSLA Bull 2X Shares: A more aggressive leveraged peer seeking 200% of the daily performance of Tesla.
2. Tesla, Inc.: The underlying security; investors often choose between holding the stock directly or using TSL for amplification.
3. ARK Innovation ETF: A major thematic ETF with a significant weighting in Tesla, often used by investors seeking diversified high-growth exposure.
4. Invesco QQQ Trust: While broad-based, it is a primary benchmark for the high-growth tech environment in which Tesla and its leveraged derivatives operate.

Strategic Outlook and Risk Factors

The outlook for TSL in 2026 is tied directly to the short-term sentiment surrounding the EV market and Tesla’s quarterly delivery cycles. The fund is positioned as a tactical tool for "event-driven" trading, such as earnings announcements or major regulatory shifts. Investors are cautioned that the "daily reset" mechanism can lead to significant value erosion in sideways or choppy markets—a phenomenon known as "volatility decay." Consequently, the fund is not intended for long-term "buy-and-hold" strategies.

Management remains focused on maintaining high liquidity and tight bid-ask spreads to attract institutional and retail day traders. In the current 2026 market environment, TSL is frequently used in "pair trades" against inverse Tesla ETFs or as a hedge within more complex options strategies. By providing a regulated, exchange-traded path to leverage, the fund aims to remain a staple for traders looking to capitalize on the high-velocity movements of the world’s most watched automotive and technology company.

Want more examples? TSEM Covered Calls | TSLA Covered Calls