TESLA earnings.
I'm certainly not trading this. But it's interesting to see how much wiggle room can be found with volatility to see where the sweet spot is as far as getting a sufficient credit while simultaneously trying to be as far away from the current price as possible. These short strikes allow the price to move +/- 13% in the next four trading days. This is the best I can do with it. And yet 13% doesn't seem like enough. On the other hand, I bet this will cover the price moves no problem! Too much ambivalence, flip the coin. But that's Tesla.
TBD!
BUY $332.5 Call 7/21
SELL $330 Call 7/21
----
SELL $250 Put 7/21
BUY $247.5 Put 7/21
Credit $35
Collateral $250
Risk:Reward 6:1
I'm certainly not trading this. But it's interesting to see how much wiggle room can be found with volatility to see where the sweet spot is as far as getting a sufficient credit while simultaneously trying to be as far away from the current price as possible. These short strikes allow the price to move +/- 13% in the next four trading days. This is the best I can do with it. And yet 13% doesn't seem like enough. On the other hand, I bet this will cover the price moves no problem! Too much ambivalence, flip the coin. But that's Tesla.
TBD!
BUY $332.5 Call 7/21
SELL $330 Call 7/21
----
SELL $250 Put 7/21
BUY $247.5 Put 7/21
Credit $35
Collateral $250
Risk:Reward 6:1
Comment:
Doh! Typo on the current share price. curses.