How I'm Trading TSLA Options (Position Breakdown, Risk-Free $10,000 Call Spread, Management)

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Tesla (TSLA) is currently the stock market's hottest stock, and options traders are having a field day with the price movements as well.

In this video, I break down:

1) My Full TSLA Position (Stock + Options)
2) How the 5-1 Stock Split Impacted My Options
3) How I Created a Risk-Free Call Spread with $10,000 in Profit Potential
4) How I'll Manage the Position in the Event of a TSLA Stock Price Crash

Understandably, you may not agree with my bullish stance on TSLA long-term. I am not suggesting or recommending that you trade TSLA in a certain way, and you should do your research before entering any positions.

These highly speculative positions are my own and I am fully aware of the risks that are present in them. Do not follow these positions as your entry prices will be much different than mine, resulting in different risk/reward profiles.

I hope you enjoyed this video. Please let me know in the comments if you'd like to see more videos like this in the future!
- @satoshiorange

==== ADDITIONAL RESOURCES / VIDEOS MENTIONED ====

Tesla Battery Day Articles:

[projectfinance]

UPDATE: TSLA now at $375 per share, down over $100 since I made this video. The position is doing just fine, but obviously down. Overall, still up $18, 000 on the position. The 300 puts that I purchased are up $4, 200, therefore reducing the overall position's loss by that amount. Hoping to do an update video today (Friday, September 4th). Stay tuned!

[projectfinance]

Hope you enjoyed taking a look at my crazy TSLA position! Did you like this video format? Would you like to see more of this stuff in the future? And lastly, what's your opinion regarding the future of Tesla?

[EngineerHarris]

Very smart. I love how you created the risk free spread by leveraging the post stock split price Options credit to your advantage. That gives me a lot of ideas for great setups for future company splits. Learned a lot! Thank you.

[ygsrinivas]

Buying call first and then selling option later for 118 is an excellent move with zero risk for 10k. Brilliant.

[GrowWithWill]

Clever way to get the 0 cost entry point on the call spread; great vid!

[HefTrade]

What's up Chris!
Super inspired to find some opportunities to create risk free trades. I don't play in the TSLA sandbox but I do think TSLA is real trend setter. Give it a few years and i feel like we will be right back to the 1k TSLA we knew just a few months ago. stay safe Chris!

[andreideco]

Really nice and useful this type of videos mixing the theory with real examples and tastyworks hands-on. Keep em coming please! Great job!

[Epmenard]

I have a quick question about the 2 300 short puts. I'm assuming they're covered by the higher calls from the bull spreads? Is that correct or would they be considered naked? Keep up the videos, they're among the best in the arena!

[MrExman]

Love the real time / current market videos, helps to see how you’re thinking and understand ways I should consider to think abt the market and how to play current scenarios at hand 👍

[Suraj-civu]

Please also explain other strategies which you have employed currently. You are very good at explaining theory but real time practical example with it wouod be cherry on top. You can also be able to teach adjustments that way. Please do consider it.

[romankhan]

Thanks Chris for reply, in this correction would u consider buying TSLA Sep 25 $550 Call in a dip as a tool to recover all losses? In other words will TSLA hit anywhere $550 - $600 till battery day ?

[Raj-mplb]

Very insightful thanks for making this video. This is the smart way to do it... I know everyone including myself just wants to buy naked TSLA calls lmao

[TaewooKim]

The part where you take risk off... This was possible because the underlying went up, correct? In other words, could you have removed the risk to zero like you did if the stock price moved down (which would result in lower call option premium received)

Also if you were expecting price to move up, why not just do debit spread to lower your risk?

[paulmulligan]

best options education channel I have found so far, thank you!

[ctom]

Hello, what do you call this strategy? do you need to hold TSLA shares in order to short calls? i've shorted calls in my margin account without owning shares, only once. i'm concerned my broker won't like me shorting calls without owning the underlying securities. (i'm long term bullish on TSLA too. i'm a new trader and your videos have been top shelf, thanks)

[romankhan]

Hey Chris, did u just sell a naked Call option if 800? If yes, how do you close it? You bought it separately than 700 call, would it be considered as a joint spread or a separate naked call ?

[Suraj-civu]

Do update us when you sell 300 put, this is getting interesting as tesla is down now.

[sedul]

Hi Chris, thanks for this. I don't know if TSLA will go up or down, just know that there's a lot of open interest so with volatility, there should be money to be made. I noticed in your portfolio that you do carry VXX ETN as what I assume to be a hedge position.

Would you care to explain whether you own stock or a synthetic long and whether you have a protective put (or put debit spread) and/or covered call? Although VXX is long-term bearish and also spikes and reverts down, due to how it is structured with holding VIX future 1st 2 months.

What are your thoughts on holding a LEAP position in it (to anticipate for volatility up swing) either a Call, Synthetic, Stock and lower cost basis by a) selling additional naked puts b) optionally protect the downside OTM with a Put / Put Spread / Diagonal LEAP Put Spread c) and possibly sell a LEAP Call at 60/70 to Collar it and pay for the downside protection?

Thoughts on strategy as we go into 9-11/2020 which seasonally is known to be higher in vol, but this year covid and elections like you said could be a catalyst up or down or just all around, ...

[mrnk]

If you don't mind me asking where and who did you learn to trade options from?

[louisthompson]

Thanks for your option education, you make it clear to am bullish on Tesla also, it's too expensive for me though.