TSLA - I own this car, it's amazing, but time for stock go down

13 may 2020

The overall market showing signs of profit taking and possible issues from long term economic impacts of covid-19.

I entered a short position here today, using a bear call spread - buying PUTS on TSLA is just ridiculous, the IV is super high and the theta is way too high.

So, we do something better - SELL a call spread and take advantage of the IV crush.

Sold 850, bought 840 call spread, net credit: $3.30. Max profit: $3,300.

Plan: will close out this spread if we see this stock move with high volume over the bottom call leg, 840.



Thanks for checking out my idea!

15 may 2020

Operación activa

still in this trade, looks like we can buy the spread back for about 1.85, so we are up approx. $1.45 on this trade, I'm going to hold until early next week to see if this breaks lower.

Plan will be close out the trade middle of next week, unless we see a major bounce up, in which case, I will close it out immdiately.