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Tesla (TSLA) is currently the stock market's hottest stock, and options traders are having a field day with the price movements as well.
In this video, I break down:
1) My Full TSLA Position (Stock + Options)
2) How the 5-1 Stock Split Impacted My Options
3) How I Created a Risk-Free Call Spread with $10,000 in Profit Potential
4) How I'll Manage the Position in the Event of a TSLA Stock Price Crash
Understandably, you may not agree with my bullish stance on TSLA long-term. I am not suggesting or recommending that you trade TSLA in a certain way, and you should do your research before entering any positions.
These highly speculative positions are my own and I am fully aware of the risks that are present in them. Do not follow these positions as your entry prices will be much different than mine, resulting in different risk/reward profiles.
I hope you enjoyed this video. Please let me know in the comments if you'd like to see more videos like this in the future!
– @satoshiorange
==== ADDITIONAL RESOURCES / VIDEOS MENTIONED ====
My 2nd YouTube Channel (Finance/Investing/Other):
Options Trading for Beginners (The ULTIMATE Guide):
Tesla Battery Day Articles:
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Great video like always! I’ve learning a lot from you! Keep the awesome work. 👍🏼😉
well done. I respect your strategy. I’m a new trader and I look forward to the day that I can operate with the same sort of shrewd planning and execution. seeing that makes me wish I had a mentor.. lol😆
This is your mentor, watch all of his videos and learn. Then, when you’re ready, apply what you’ve learned in small positions and work your way up.
Thanks for the comment. The strategy does have some holes in it, such as little stock price movement over the next 90 days (which is unlikely with catalysts ahead, and general TSLA volatility). If the stock doesn’t experience any sort of decline, the puts will go out worthless and I’ll have to determine whether or not I want more insurance after they expire. But I’ll cross that bridge when I get to it!
Fantastic video Chris. Thanks for articulating all your strategies here, it’s very helpful! Great video.
I like this style video
Thanks for letting me know. I’ll do more in the future as they’re easier to make than my in-depth educational videos.
projectoption Yeah, i think we all enjoyed the candid conversation style format here
vow. excellent call. i am impressed
Please also explain other strategies which you have employed currently. You are very good at explaining theory but real time practical example with it wouod be cherry on top. You can also be able to teach adjustments that way. Please do consider it.
Hi Chris, thanks for this. I don’t know if TSLA will go up or down, just know that there’s a lot of open interest so with volatility, there should be money to be made. I noticed in your portfolio that you do carry VXX ETN as what I assume to be a hedge position.
Would you care to explain whether you own stock or a synthetic long and whether you have a protective put (or put debit spread) and/or covered call? Although VXX is long-term bearish and also spikes and reverts down, due to how it is structured with holding VIX future 1st 2 months.
What are your thoughts on holding a LEAP position in it (to anticipate for volatility up swing) either a Call, Synthetic, Stock and lower cost basis by a) selling additional naked puts b) optionally protect the downside OTM with a Put / Put Spread / Diagonal LEAP Put Spread c) and possibly sell a LEAP Call at 60/70 to Collar it and pay for the downside protection?
Thoughts on strategy as we go into 9-11/2020 which seasonally is known to be higher in vol, but this year covid and elections like you said could be a catalyst up or down or just all around,…
Great video
Thanks!
What’s everyone’s take on TSLA’s post-split IV spike? Crazy how quickly the premiums grew. Sold some JUNE 2022, $570 puts ($114 post split) and the bid ask spread is all over the place. Pre split the spreads were pretty tight across the line.
Very smart. I love how you created the risk free spread by leveraging the post stock split price Options credit to your advantage. That gives me a lot of ideas for great setups for future company splits. Learned a lot! Thank you.
Love the real time / current market videos, helps to see how you’re thinking and understand ways I should consider to think abt the market and how to play current scenarios at hand 👍
UPDATE: TSLA now at $375 per share, down over $100 since I made this video. The position is doing just fine, but obviously down. Overall, still up $18,000 on the position. The 300 puts that I purchased are up $4,200, therefore reducing the overall position’s loss by that amount. Hoping to do an update video today (Friday, September 4th). Stay tuned!
@Supernavaaa If you are long-term bullish, then it’s something you can do. The calls are less expensive given that the stock price is much lower than it was a few days ago. But it’s a high-risk trade, so I can’t recommend what you should do exactly. It’s your choice.
Am I able to add a short call to my long Tesla call like you did wothout having 100 Tesla shares? If I do that, will it immediately be considered a spread? If not how could I do that so the short call gets tied to my long call to create a spread. Please advise
It depends how your brokerage recognizes your positions. IF you own a call, you should be able to short a call against it (higher strike price, same expiration, same quantity) and reduce your margin requirement overall. Some brokerages do not have that level of sophistication in their margin systems, so it depends on your broker.
@@projectfinance CB, just a thought. Have you thought about doing a show about day trading weekly options?
the 2x $300 puts for protection was a great move
Are long call spreads a viable alternative to buying put credit spreads. How does time decay affect a long call option overtime lets say greater than 120 days. If possible could you do a video or maybe you have one i can refer to that explains what happens to a Long call option bought 120 days out behaves. I know in a put spread I sell the premium.
I was thinking buying a leap call on NVDA 9/2022 but it’s 15k so was looking to sell a call which would make it half the price. The problem is the only way to make good money is by selling a really high call on top but it would forces you to drag the time in your trade risking turning un favourably at the last moment.
What if I’m a $500 Robinhood instant account trying to trade SPY credit spreads, usually shorting an OTM put ($330 strike) while buying an OTM put at a lower strike ($329 strike). Usually this would yield around 5-10% profit while only requiring $100 or less buying power per spread. My question are:
1. what happens if the spread I short expires in the money & I am auto exercised? Will my broker pump $33K cash into my account super quick (I definitely don’t have that much by myself) to buy the shares and sell them right back?
2. Also, my Robinhood instant is not a standard margin account, so I don’t think I can short. If my long put expires in the money & I am unable to find anyone to buy the put before then, will Robinhood make me auto exercise the put? Will it make me sell $32.9K shares worth of SPY that I don’t own & then immediately but them back for me?
I wanna make sure I don’t accidentally blow my account up trying to trade an affordable credit spread.
Also, can you buy options on the day they will expire? Like in the morning?
Very educational video. Quick clarification, 8:58 Did you mean close the 700/800 Call options (said Put).
If you don’t mind me asking where and who did you learn to trade options from?
best options education channel I have found so far, thank you!
Really nice and useful this type of videos mixing the theory with real examples and tastyworks hands-on. Keep em coming please! Great job!
I hope to learn more about Tesla in your trading decisions as I am also in the long-term investor category. I have yet to make my first Option trade (3/8/21). I cannot get past a roadblock “I need to have a higher level of Option Agreement on an Option expiring 6/22.’. How can I resolve this with a $707 cash n bank position to open an Option trade. Is the cash relevant?