On Friday Aug 17 as Tesla stock was under selling pressure, I put together a trade in the stock designed to both protect my capital that was at risk and to also try to profit from intraday swings in the stock. On Monday Aug 20 the put side of the Tesla Stock trade was closed. On Tuesday Aug 21 2018 the call side of the trade was closed.
The profit for two days of risk was 94%. Here is the link to the original trade article. Below are the end results of the trade.
Tesla Stock (TSLA) – Sep 21 expiry
PUT DEBIT SPREAD
Friday August 17 Trade Established:
In the original trade from August 17 I bought 5 of the $300 put strike for $17.75 and I sold 5 of the $285 put strike for $14.75.
This left a cost of $3.00 X 5 = $1500.00
Monday Aug 20 Put Side Closed:
On Monday Tesla stock sank at the open and I sold 5 of the $300 put strike for $27.00 and bought to close 5 of the $285 put strike for $19.20.
This created a gross profit of $7.80 X 5 = $3900.00.
Net Profit on the put side of this trade was $2400.00
CALL DEBIT SPREAD
Friday August 17 Trade Established:
In the original trade I bought 5 of the $310 call strike for $19.75 and sold 5 of the $325 call strike for $13.66.
This left a cost of $6.09 X 5 = $3045.00
Tuesday Aug 21 2018 Call Side Closed:
On Tuesday Tesla stock rose to $324.79 before closing at $321.90. I sold 5 of the $310 call strike for an average price of $29.64 and bought to close 5 of the $325 call strike for $19.70.
This created a gross profit of $9.94 X 5 = $4970.00
Net Profit on the put side of this trade was $1925.00
Trade Summary:
Total Commission in the trade was $30.00
Total Profit: $4295.00
Total Capital at risk = $4545.00
Return was 94%
Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.
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