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Fugly day for TSLA. We’re sitting at a -4.4 standard deviation to the downside… this kind of action hasn’t happened in quite some time.
I do want to buy this dip, but respect the fact that it’s the first down day and so it’s a touch early.
Here’s the trade:
Sell to open TSLA Oct 235/230 bull put spread for 0.90 HALF SIZE
Add at 1.30
If filled at 1.30 put GTC order to buy back half at 0.90 (this is done to work a better basis).
Put an order to close at 0.45 then reopen at 0.90
If we hit 235 roll down and out to November.
Added at 1.30 yesterday, closing that 2nd half at 0.90 today.
If the spread goes for 1.45 I will reenter that 2nd half.
Closing out first half of the spread at 0.53.
Where does that leave us?
The first round was sold at .90, closed out today at .53 for a gain of 37 per spread.
The second round was sold at 1.30, closed out 2 days ago for .90 for a gain of 40 per spread
The reason I’m bailing here is because I’ve realized (almost) 50% profits and the trade still has 30 days to expriation… and TSLA could head lower here… so I’m willing to reenter.
If the spread goes for .90 I will enter in another round, and then if it gets to 1.45 I will add.
Nice gap and drive lower, so I am reopening the spread.
Sell to open HALF SIZE TSLA Oct 235/230 bull put spread for 1.40.
Buy back at .70.
If TSLA continues to sell off, I will ADD to the trade but with DIFFERENT STRIKES
Sell to open TSLA Oct 225/220 bull put spread for 1.00, with a bidu to close at .50.
Good news out of TSLA on some announcement of a new car. Or something. That’s leading to a gap up and an opportunity to bail again.
Buy to close TSLA Oct 225/220 bull put spread for 0.50 or better
Buy to close TSLA Oct 235/230 bull put spread at 0.80 — I was waiting on .70 but given how this market’s trading I’m going to take profits a little faster.
TSLA back near support, so going to re-add some spreads here.
Again, this is half size, with intent to add.
Sell to open TSLA Nov 210/205 bull put spread for .95
ADD at 1.45
BUY TO CLOSE at 0.45
BUY TO COVER the second half at 1.20
We still have the first round at a .95 basis.
I will RE-ADD the second round if the spread gets up to 1.75.
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