Nice to hear from a veteran. I've only been actively trading a decent block of capital for 1.5 years now. This is the first time I've seen something I know enough to understand is blatantly wrong and had some clue of what to do about it. Was hard to really press the edge amidst the volatility and uncertainty. Hope there's more to come like this.
Puts were extremely expensive, Like you would need the stock to drop hundreds of dollars in a short period of time to break even let alone profit. I did sell call credit spreads tho which are working out. Its only seemingly obvious because its hindsight.
Puts were priced way toooo high. UnLike the calls which were trading below a dollar that spiked to $10-$20 in a matter of hours/days before tsla made its run to nearly 1000.
I did the exact thing, I was about to pull the trigger on a long put spread when it was at 800 and I chickened out.
Out of interest what was the credit spread you used? I assume this is buying a put and pairing it with a credit spread above the highs?
Friday, the closest. I figured even if I am wrong with the exact timing, the top had to be really close. Also I tend to think I can leg out of a vertical if it goes against me.
1 important difference with other recent "big shorts" (like TLRY, Beyond, etc.) is that borrowing costs for TSLA are almost 0. That is a mayor advantage (also the knowledge that this aspect will not push up the stock further)...