Out of a Tesla Call

Today started off to be another good morning!

Tesla (TSLA) has been on a crazy run lately and I’m glad to be a part of it. This week I bought 100 shares at $1135 and sold the $1200 Call and another 100 shares at $1164 and sold a $1250 Call. Besides these expensive positions, on Tuesday I bought 1 TSLA  Call option. With the stock at $1161.50 I bought (1) 3/18/22 $1175 Call for a premium of $165.

The Covered Calls expire tomorrow and It looks like I’ll do very well with those positions. Today with the stock up about $18 I felt it was moving a little sluggish. Imagine, thinking a stock up $18 is moving sluggish? lol. With that feeling I decided to grab the profit and sell the Call. Remember, I got in with the stock at $1161.50 on Tuesday and sold today with the stock at $1232. My premium went from $165 to $225, up $60. On the 1 contract that’s a profit of $6000 in 2 days.

 

11/2/21  – Buy to Open 1 TSLA 3/18/22 $1175.00 C @ $165.00

11/4/21 – Sell to Close 1 TSLA 3/18/22 $1175.00 C @ $225.00

Profit +$6000 

With an Expiration Date of 3/18/22 did I get out too early? Who cares? I made $6000 in 2 days! I love taking profit, especially with a Long option. If the stock pulls back you never know what Time Decay will do to your position.

With TSLA on such a crazy run you never know when a pull back is coming. I decided to take the profit and help make a great week. With this $6000 added to the $5940 I already have locked in from the sale of 300 shares of NVAX this is shaping up to be a great week! Check out my Active Positions page, I have a lot of Calls expiring tomorrow. I’m a little worried about PTON and SQ because they announce earnings today after the close. If they come up with good earnings this will be a banner week. I’m more worried with PTON!

 

Successful trading,

Steve

The Options Coach