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Home › Forums › Trading Earnings Live › Long Vol in TSLA
TSLA is pricing in 6.3% into earnings.
Over the past 12 earnings, the stock has moved 11%.
Premium is way too cheap here.
This is how I will trade it.
ET Live Spreads Order Ticket | ||||
Type | Asset | Duration | Strike | C/P |
---|---|---|---|---|
STO | TSLA | 5 Aug 16 | 240 | Call |
BTO | TSLA | 5 Aug 16 | 225 | Call |
BTO | TSLA | 5 Aug 16 | 225 | Put |
STO | TSLA | 5 Aug 16 | 210 | Put |
Total Debit: | 11.02 |
Another long vol bet that went south.
Given the inputs, I would take this trade again because the odds favor it so well.
ET Live Spreads Order Ticket | ||||
Type | Asset | Duration | Strike | C/P |
---|---|---|---|---|
BTC | TSLA | 5 Aug 16 | 240 | Call |
STC | TSLA | 5 Aug 16 | 225 | Call |
STC | TSLA | 5 Aug 16 | 225 | Put |
BTC | TSLA | 5 Aug 16 | 210 | Put |
Total Credit: | 1.10 |
New rule: if there are takeover talks involved with a company going into earnings, don’t go long vol as the arb’s will smack it back down.
New rule: if there are takeover talks involved with a company going into earnings, don’t go long vol as the arb’s will smack it back down.