Rally In Tesla Stock (TSLA) Sets Up Next Trade – Nov 16 2018

Tesla Stock (TSLA)

Trades in Tesla Stock so far this year have been close to phenomenal. The stock continues to gyrate between spikes higher and plunges lower. This makes the stock ideal for my trade strategy.

You can also review the various Tesla Stock articles through this link.


Tesla Stock (TSLA) – Dec 21 Expiry

Tesla reports earnings Feb 5 (tentative). Those earnings are estimated to be stellar, reaching $2.06 a share versus a loss of $3.04 for the same quarter last year. Revenue is expected to reach $7.1 billion more than double last year’s $3.3 billion.

Volatility is what drives these trades to make large profits. I am not expecting that to change much in 2019.

PUT DEBIT SPREAD

Bought 5 of the $345 put strike for $18.77 and sold 5 of the $330 put strike for $14.40.

This left a cost of $4.37 X 5 = $2185 against a spread of $15.00


CALL DEBIT SPREAD

Bought 5 of the $355 call strike for $20.60 (average) and sold 5 of the $370 call strike for $14.14

This left a cost of $6.46 X 5 = $3230.00 against a spread of $15.00

Total Commissions = $15.00

Total capital at risk in this trade = $5415.00


Comments:

This trade has a month until expiry which could allow for profiting from both sides of the trade.




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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