Direxion Daily TSLA Bull 2X Shares (TSLL) Covered Calls

The Direxion Daily TSLA Bull 2X Shares is an exchange-traded fund that seeks to provide 200% of the daily performance of the common stock of Tesla, Inc. The fund utilizes financial derivatives, primarily swap agreements, to achieve its double-leveraged daily target. It is designed as a high-octane tactical tool for sophisticated traders who wish to amplify their short-term bullish exposure to the volatility and growth of a global leader in electric vehicles and artificial intelligence.

You can sell covered calls on Direxion Daily TSLA Bull 2X Shares 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 TSLL (prices last updated Fri 4:16 PM ET):

Direxion Daily TSLA Bull 2X Shares (TSLL) Stock Quote
Last Change Bid Ask Volume P/E Market Cap
15.50 +1.00 15.42 15.43 85.1M - 0.0
Covered Calls For Direxion Daily TSLA Bull 2X Shares (TSLL)
Expiration Strike Call Bid Net Debit Return
If Flat		 Annualized
Return If Flat
Feb 20 15.5 0.93 14.50 6.4% 156%
Mar 20 15 1.97 13.46 11.4% 96.8%
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Extended Business Description

Direxion Daily TSLA Bull 2X Shares is a highly liquid leveraged investment vehicle tailored for active market participants who want to magnify the daily price movements of Tesla. As one of the most popular single-stock leveraged ETFs, TSLL is engineered to provide twice the "punch" of the underlying equity, making it a favorite for traders navigating the high-velocity news cycles typical of the clean energy and autonomous driving sectors.

Core Strategy and Operations

  1. 200% Daily Leveraged Objective: The fund seeks to deliver daily investment results, before fees and expenses, of 200% of the daily performance of Tesla. To reach this multiple, the fund enters into swap agreements with major financial institutions. These swaps allow the fund to achieve synthetic 2x exposure without the need for the fund to hold 200% of its assets in physical shares, though it typically holds a portion of the underlying stock and cash equivalents as collateral.
  2. Daily Reset and Compounding Mechanics: TSLL is designed to reset its exposure every trading day. Because of this mechanism, the fund's performance over periods longer than a single day is the result of compounding each day’s returns. In volatile markets, this can lead to "volatility decay," where the ETF may lose value even if the underlying stock is flat over the same period. It is intended for short-term tactical use and is not a "buy-and-hold" investment.
  3. Fee Structure and Liquidity: As of 2026, the fund maintains a net expense ratio of 0.95%. Despite the higher cost relative to passive index funds, TSLL offers institutional-grade liquidity, often trading millions of shares daily. This makes it a primary tool for "swing trading" around earnings reports, delivery numbers, or major product announcements.

Competitive Landscape

TSLL is the dominant bullish leveraged player in the Tesla ecosystem but faces competition from the GraniteShares 2x Long TSLA Daily ETF and the Leverage Shares 2X Long TSLA Daily ETF. For those who prioritize income over pure price appreciation, the YieldMax TSLA Option Income Strategy ETF is a common alternative. Traders looking for the opposite side of the trade often utilize the Direxion Daily TSLA Bear 1X Shares or the Tradr 2X Short TSLA Daily ETF. For broader but still leveraged EV exposure, the Direxion Daily Electric and Autonomous Vehicles Bull 2X Shares is a frequent peer.

Strategic Outlook and Innovation

Management focuses on maintaining tight correlation with Tesla's daily price action while managing the significant counterparty risks associated with single-stock swaps. As Tesla continues to pivot toward AI, robotics, and energy storage, TSLL remains the "hot sauce" of choice for retail and institutional traders who believe the stock's high beta will continue to offer outsized short-term opportunities. However, the fund is non-diversified and carries substantial risk; a significant one-day drop in Tesla’s stock can lead to a rapid loss of principal. Consequently, it is best suited for experienced investors who monitor their positions intraday and understand the mathematical nuances of leveraged compounding.