BarnardR

TSLA Weekly Options Play

Short
NASDAQ:TSLA   Tesla, Inc
Description
TSLA has to stop at some point, right? Risk here is limited by time, 1 DTE to make a couple points.

Call Credit Spread
Levels on Chart
SL > 1250
*Stops based off underlying stock price, not mark to market loss

The Trade
BUY
11/ 05 1260C
SELL
11/ 05 1250C

R/R & Breakevens vary on fill, super tight trade though, risking 1000 to make ~200-300.
The short call is placed close to the money for higher profit.
The long call is placed 10 points away based off of collateral requirements and risk tolerance.

Manage Risk
Only invest what you are willing to lose
Trade active: My fill is at 2.2, pretty trash.
You could fill at 3 now, easy.
Trade active: The close today is conducive to the credit spread.
Comment: Here is a link a better chart,
This chart contains the bollinger bands with the outer bands set at 2 stdev's apart.

Basically, 45% moves in 2 weeks aren't typical of regular conditions, and some reversion to the mean will be necessary.
A lot of risk is eliminated by having only 1 more day to expiration.
Comment: Added a couple more short 1240Cs @1.52.
TSLA testing the VWAP to the downside again right now.
Trade active: Ok, my broker decided they didn't like the 1240Cs, so they took the liberty of closing them for me... 1.5 points/contract gone.
Still on in the 1250Cs, will look to close these at last minute to eliminate after hours gap risk
Trade closed: target reached: Had to leg out of this one for a total debit of .01, +99.5%.
Trade active: Hit another one, 1065/1075C Credit Spread, looking to expire worthless.
Filled @ .91.
Trade active: Will be taking 100% profit.