Making 80% ROI on TSLA Puts Over the Past Two Days + New Positions on DIS, BAC & SPOT | Options Trading w/ Khal


TSLA Closed. Then Opened, Then Closed Again

All the rage over the past 2 days has been about Tesla and its parabolic increase in price. My last entry to this trading log was when I had an open PUT position on TSLA (ref #4 in the chart). That trade was looking gloomy for me up until yesterday when the extraordinary rise in price caused an explosion in implied volatility which made my contracts rise in premium value.

Over the course of a few days (between 1/30 and 2/4), I added more TSLA puts to my position to average my cost down. I ended up with an average cost of $1.53 per contract. When it was all said and done, I sold for an average of $1.99 per contract... a 30.07% profit. Not bad.

What's even more funny is that I bought more puts after closing that position. This time around, I tightened up and bought the 2/14 expiration date put contracts for an average cost of $2.49. These were much closer to the money (strike price of $567.50 vs. $495).

Tesla opened the day down 8% and proceeded to shave off another 20% from yesterday's run-up. I sold my second order of puts this morning for a monstrous 50.60% profit. Needless to say, Tesla's volatility was a profitable event for my portfolio.

KO - Correction off of a Solid Earnings Jump

I was eying KO after their earnings rally and ended up closing those puts for a clean 14.06% profit. That was a pretty moderate call and it went pretty much as expected. I closed that at the end of last week.

BABA - A Quick Open and Shut Trade

Alibaba turned out to give me a nice and quick open and shut case. I opened it yesterday, picking up some puts for $1.32/contract and sold it this morning for $1.60 per contract.. a 21.21% profit.

Opening Trades - calls on DIS, puts on BAC, calls on SPOT

Today was an active day for me. I closed 2 pretty fantastic trades and opened 3 new ones that seem to have some solid potential.

With the advent of Disney+, I'm feeling pretty bullish in the short term. I bought these contracts on the cheap and I think DIS will recover a bit this week.

SPOT also gives me a similar feeling. They just made an announcement of an acquisition and other investments related to the podcasting space. I think a lot of attention is moving to this space in the coming years (as it has been in the past few years). We're still at the beginning of a very voice-centric global economy.


All said and done, my trading account is looking nice and pretty over the past month. The markets have seen a nice degree of volatility lately and that is always good for business.

Posted via Steemleo


Comments 9


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05.02.2020 23:21
0

Take the sideways volatility when it is there! So easy to get wrecked with a correction and get stuck with bags because of incorrectly set stoplosses! Taking profit in chunks like this and not banking on a moonshot sounds like it is trading you well!

Nice work man. Neat to follow you in this journey.

Posted using Partiko iOS

05.02.2020 23:24
0

that is a smart strategy..

Posted via Steemleo

08.02.2020 15:17
0

Great trading story. Amazing display of the potential of options to make money on puts, even if market sentiment is bullish, you can profit from the up and down movement of stock prices through leverage inherent in options, the magnificent ability of implied volatility to increase premiums and the contract multiplier of 100x.
Good Post

Posted via Steemleo

05.02.2020 23:24
0

Damn dude, u need an etoro account so I can copy trade you (not sure if etoro has puts though) xD you are def on fire with those puts. The market is so irrational right now, I think I haven't seen anything like Tesla since the BTC bubble, makes no sense the current market cap, Tesla would prob have to build around 1M cars this year for the current market cap to be valid... If tesla provided some dividends I would think about buying some shares for long term hodl, but unfortunantly it doesn't.

Posted via Steemleo

06.02.2020 02:26
0

Nicely done, you will have to share your method one of these days.

Posted via Steemleo

07.02.2020 03:50
0

informative...

Posted via Steemleo

08.02.2020 15:14
0