For example, if you hold 100 shares of Tesla, you could
1: Buy 1 March 14th 350 call for $19.5
2: Sell 2 March 14th 380 call for $9.5
The net cost of the above transaction is $0.
If Tesla rise to 380 before 3/14, you can take the max profit of all the spread, which is $3000. You breakeven point would be 410 --- the loss on the covered call will equal to the gain on the spread. In this case, you just close both positions with no profit, but the underline stock is now 410 so you are still better off.
This strategy allows you to essentially buy the call spread with zero cost for this short term bounce.
I did this yesterday on 340/370, but I think it is not too late to play 350/380
