Once in a while a trade appears that is intriguing to consider the potential results. Tesla Stock (TSLA) is definitely in that category. The CEO is so worried about short-sellers that he may finally be playing into their game as the stock is down big again today following a bizarre interview with Musk.
I discussed this trade on my public yahoo forum so I am leaving this trade open to all investors.
Tesla Stock (TSLA) – Sep 21 expiry
I bought 5 of the $300 put strike for $17.75 and I sold 5 of the $285 put strike for $14.75. I have a debit on the put side of this trade of $3.00 but if the stock falls to $285 this trade will be extremely worthwhile. This is a $15 spread.
I bought 5 of the $310 call strike for $19.75 and sold 5 of the $325 call strike for $13.66. I have a debit on the call side of $6.09. This is a $15 spread
Commission – $15.00
Total Capital at risk = $4545.00
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.