Short selling can be a valuable tool for any investor when advanced strategies, such as using put options and pair trading, are used to further refine the approach.

Investment Summary The Defiance Nasdaq 100 Enhanced Options & 0DTE Income ETF (NASDAQ: QQQY) is a recently launched ETF that uses a short-put strategy on the Invesco QQQ Trust ETF (QQQ). The fund ...

But instead of taking on margin to directly short Tesla, you can take a closer look at Tidal's YieldMax Short TSLA Option Income Strategy ETF (CRSH -2.92%), which aims to profit from Tesla's stock ...

However, a short-put strategy here could produce higher income for investors. For example, the $670 put strike price has a premium of $4.70.

They could sell the underlying short, buy a put option, or set up a more complex options trading strategy, like a bull put spread. Each path has its benefits and drawbacks.

Now, here are all TSLA short iron condor trades with 310-put short strikes, pre-arranged based on the lowest probability of profit. Let’s take the top one and break it down.

If you’re short puts, you may need to buy the stock if it moves lower. That could wipe out the comparably modest gain from selling the puts for income, and leave you in a much worse position.