6 weeks later, and the price is still around $354, this is probably the longest range zig-zag in Tesla's history. I started this thread 7 months ago...
You are right TSLA is caught in a range sort of between 310-380. I havent done your IC but made directional bets in the period any time it was below 320$ and bailing around the 360$ mark - its been consistently profitable.
Since the price is testing the lower side, although 300* seems to be support, I would sell the Apr 350/360 vertical calls for 1.8, to help out with the possible loss on the put side... *Edit: scrap that
Wow. Three months to earn 1percent on notional and two times where things could have gotten pretty hairy.
Da fuck you talking about? Who cares about notional? It is like shorting a stock at 41 and the stock is down to 11. How is that 1% for you? The amount is really up to you how much you invest in the position, how many contracts you use. That is why I used ROI.
ROP (return on premium) is stupid when looking at the return for shorting options. If your options were all of a sudden worth 50 dollars would you consider that a 1000percent loss? If you shorted the gut strangle instead (which would have been like 104 dollars would you call that a 2percent return?) If you shorted a stock at 41 and it went to 11 you would have made 70percent. If you shorted an ATM call instead, was your return better despite the same downside risks?