I Just Put On This Tesla Trade

JC Parets
January 18, 2024

I wouldn't say that volatility is high, but it is higher than what we've grown accustomed to over the past few months.

Tesla has earnings coming up and the animal spirits are out.

Traders do not have patience. They are willing to pay a high number to own call options, and put options as well.

So we're taking advantage of their poor spending habits and happily accepting their donations.

Look at this mess. Can you find me a messier stock?

The bet here with Tesla is that this messy stock remains a mess for even longer.

We sold the February 240 Call and the February 190 Put. But in this environment, where the US Dollar is behaving this way, we don't feel that comfortable being naked short options.

So in order to hedge our strangle here, we bought further out of the money calls and further out of the money puts. We did this 10 points beyond the strikes we already sold, in order to not be exposed to any outsized moves, market-related or earnings-related.

This simple trade is called an Iron Condor. We collected $3.10 in total.

As soon as we can buy this back for $1.50 we'll go ahead and take our profits. We already have our resting orders entered.

"But JC are you bullish or bearish? Pick one!"

Nope.

We don't have to.

We can leave those choices up to the people making donations. We'll just bet that Tesla stays a mess and those donations end up in our pockets.

This is a higher probability of success bet. Click Here to check out all the details for today's TSLA trade.

There are different strategies for different environments.

There's a time and a place for everything. Notice how this trade is very different than the types of trades we've been putting on over the past few months.

That's because we're in a slightly different volatility regime.

So we're taking advantage of that before word gets out.

There are some other changes taking place in this environment, both in the U.S. and around the world.

We'll be discussing it all tonight on our LIVE Conference Call.

Which stocks we're buying? Which ones we're avoiding? How do these changes in interest rates factor in? What about the Dollar? Gold? Energy?

We'll discuss it all Tonight LIVE @ 6PM ET.

Premium Members can register here.

If you're not already a member, give Mary a call so she can give you access before the main event +1 (323) 421-7910

Also, as always if you cannot make the Conference Call LIVE, it will be archived here along with all the charts to download.

See you there!

JC

 

 

 

 

 

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