TSLA 130 weekly put at $0.55

Discussion in 'Options' started by FXforex, Dec 9, 2013.

  1. Hi peeps, this is my first post. Thought I'd suggest an interesting trade for discussion. Look at it on your trade/probability calculator. Fills today will adjust actuals, but look at selling TSLA 1 x 147 strike call Dec13 (this week) for $6.40 and buying 3 x 160 strike call DecWk4 (next week) for $1.86 at a net credit of $82. If it keeps popping and goes above $155 or $156, unlimited upside, if it tanks you keep the $82 with a peak of $275 if TSLA slides to $147. You'll have to wait until Friday for this to be profitable. You could do it the other way with puts, or go further out in time ... and of course take larger positions. :) Not a recommendation, just throwing it out there. What's cool about this admittedly theoretical pricing is the probability curve never goes below zero. It might for fills later today, but I'm curious. Most of these Victory or Vacation Spreads have a sea of death where if they don't move, you can lose a few bucks initially and more and more as time wheres on. This one seems to be above water at all prices of the underlying. Thanks for reading this far. I thought if fit the discussion of a short term trade that wins if TSLA tanks, but wins bigger if it keep going higher (as it seems to be doing short term).
     
    #21     Dec 18, 2013