Isn't this a no brainer trade?

Discussion in 'Options' started by Pekelo, Aug 7, 2018.

  1. Pekelo


    So Elon is tweeting about taking Tesla private at $420. Assuming this is true (I know, a big if) then selling vertical calls anywhere above 420 should be an obvious no brainer trade, right?

    The stock price has no reason to go over 420 even in the case of short squeeze, thus selling calls above $420 should be safe. Any thoughts?
  2. destriero


    The Jan2019 420/430 bear spread would return 32% on capital. >70% annualized.
  3. Maverick74


    And if his next tweet comes out saying $520, then what? LOL.
    jys78, sle, SmallFry and 1 other person like this.
  4. newwurldmn


    Adjust the trade so you don’t have to take the loss. Duh!
  5. Arnie


    halted- news pending
  6. Doubt there are any genuine "no brainer" trades. (Otherwise, nobody would take the other side.) There are some "highly correlated" ones, however.
  7. newwurldmn


    They probably have to verify Musk's tweet. SEC will probably investigate as market manipulation.
    destriero likes this.
  8. tommcginnis


    Every time I hear "four-twenty," I crack up --

    how come nobody thinks this isn't one knee-slappin' hoot for ol' Elon,;)
    engaged in a little mirth while smokin' a fattie?

    I mean, c'mon..... :D
    vanzandt, Lou Friedman and LS1Z28 like this.
  9. Lee-


    I doubt it. I'm pretty sure Musk has released plenty of information he's known to be false, including forward looking statements, and so forth. I'm actually shocked he's not been charged with something yet.
  10. sle


    while smoking the shorts...
    #10     Aug 8, 2018
    tommcginnis likes this.