Tesla (TSLA) shareholders approved CEO Elon Musk’s potential $1 trillion pay package Thursday, with more than three-quarters of all stock holders approving this historic package. This plan has high hurdles for Musk and the $1 trillion payday only fully kicks in when TSLA achieves a market cap of roughly $8.5 trillion. I want to use put options to create an income as volatility is heightened in this feverishly debated “Magnificent Seven” member. Tesla’s current market cap is slightly under $1.5 trillion. Year-to-date, the AI-focused stock that is covertly cloaked as a car company is up more than 7%. This high beta (2.06 beta) and volatile tech company historically trades at a high implied volatility. Tesla evolution and chip design aspirations continue to encourage shareholders despite not having current tangible accomplishments in the world of chip production. However, Musk said the company may have to build a large semiconductor plant to produce chips for its next generation of AI systems. Speaking at Tesla’s annual meeting, Musk said the company is designing its fifth-generation AI processor, called the AI5, to support self-driving and robotics efforts. Musk told investors it probably makes sense to talk with Intel (INTC, Financials) about working together and he also alluded to creating their own chip fabrication. As Tesla traded down about $20 to $425 on the opening bell and Tesla’s short-term direction has correlated to the recent profit taking in the broader technology sector, I think now is the time to harness option premium and take advantage of higher volatility regime with the VIX front-month futures now above 20. The trade Sold the TSLA 12/26/25 $400 put for $20.00 Bought the TSLA 12/26/25 $350 put for $7.50 Tesla was whipping around $425 at the time this put spread was sold An investor is risking $37.50 on this credit spread in the event Tesla closes under $350 at year end. An investor seeks to collect $12.50 per spread in the event Tesla ends the year above $400. DISCLOSURES: Kilburg sold this TSLA spread and is long Tesla. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.