Tokenized TSLA (TTSLA) is the first RWA (Real-World Asset) that 
As someone who has traded options since I was 14 (so literally half my life - as I discovered while we were recording this clip), I am deeply fascinated by the financialization of all this.
When TTSLA came out, I had a thought: can you arbitrage TTSLA by buying it and then shorting TSLA options on the TradFi stock market.
Well if you follow me on INLEO Threads then you'll have seen my real-time updates about this. I am currently collecting nearly $100 per day in theta decay and this strategy appears to be extremely scalable as TTSLA's market cap grows.
My Strategy is Simple
- Buy TTSLA
- Short TSLA Call Credit Spreads
By buying TTSLA, I am getting long exposure to TSLA.
By shorting TSLA, I am hedging that long exposure to TSLA.
- TTSLA pays Daily Yield from
- TSLA credit spreads pay Daily Theta Decay. If you know how options work, you sell options and take in a premium (called a "Credit"). This premium decays every day that the option is live. It is a form of daily income if you sell OTM (Out of the Money) options
By doing this strategy, I am effectively trading the correlation of TSLA:TTSLA. If TTSLA is trading cheap, I can buy it up and simultaneously short TSLA to crunch the spread.
This past week, I closed my first successful trade of doing this. The profit was 33% in 2 days.
The real key is not quick profits, its earning the options premium decay while being long TTSLA.
I find this deeply fascinating and in this clip from the last LEO AMA, I talk about it as it was the first day I put this trade on.
As LeoStrategy releases more RWAs, I plan to do this on every single RWA which means I'll be continually buying TTSLA, TGLD and all future LeoStrategy RWAs in order to build up my long position. Then I'll be shorting call spreads on the stock market to hedge those RWAs and collect options yield. Every time I get paid yield, I'll reinvest it into more TTSLA, TGLD, etc. and then scale up my strategy.
The scale of the strategy is dependent on how much TTSLA, TGLD, etc. I own. Right now, I own about $25,000 worth of TTSLA which means I can sell quite a few of these call spreads. I have been quietly buying more TTSLA each day so that I can scale this strategy up.
100 TTSLA = 1 TSLA
So if I own 1,000 TTSLA, I can short 100 TSLA worth of exposure in the form of selling Credit Spreads on TradFi.
If you find this confusing, just follow along and you'll learn as we go! I am transparently sharing all of this on Threads.