ncy12

TSLA option trade

Short
ncy12 Updated   
NASDAQ:TSLA   Tesla
TSLA reached my earlier target



As it is at multiple levels of resistance (200 day EMA, 50% retracement of the down trend, previous support at around 220 now acting as resistance etc), I suspect it might retrace some of the up move. Here is my trade

  • Buy March 17 200 put
  • Sell March 17 185 put
  • Sell March 17 180 put

You can see the P/L graph on the chart. I opened the trade for a credit of $0.80. Even though this is a short position, I don't have any upside risk here. As for downside, here are the scenarios at expiration

  • Closes above 200, I keep the $0.80 credit
  • Closes between 200 and 185, I get up to $1500 based on where it closes
  • Closes between 185 and 180, my profit will be $1500
  • Closes below 180. I will be assigned 100 shares of TSLA at 180 and based on where it closes I will start losing my profit. My loss starts at 165.

I will exit this trade long before expiration if I get around 50% of the profit. I have a GTC order in place to do so.
Trade closed manually:
Closed the trade for about 1/3 of the width profit (5-6 points of the total 15 points).
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