This Tesla Stock (TSLA) trade is once again open to all investors. My last several trades in Tesla have all been profitable.
With the stock reaching $253 earlier today I am setting up another similar trade. Remember that you trade at your own risk and past results definitely don’t always repeat themselves.
Tesla Stock (TSLA) – Oct 19 expiry
PUT DEBIT SPREAD
Bought 5 of the $262.50 put strike for $11.62 and I sold 5 of the $250.00 put strike for an average of $7.80.
This left a cost of $3.82 X 5 = $1910.00 against a spread of $12.50
CALL DEBIT SPREAD
Bought 5 of the $262.50 call strike for an average of $13.80 and sold 5 of the $275 call strike for $8.25 (very lucky on this one. I think this might end up being the high for today)
This left a cost of $5.55 X 5 = $2775.00 against a spread of $12.50
Commission = 20 X .75 = $15.00
Total Capital At Risk In This Trade = $4700.00
The trade costs more than the prior trade and reflects higher volatility in the stock as well as a bias by the market maker to the upside which is obvious when you look at the prices for the calls at similar strikes. Obviously the market maker thinks there is more upside than downside potential in the stock.
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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