Out of Another Tesla LEAPS

This will be a day to remember! I have no Idea where Tesla will go in the coming days, but I had a plan to get out of most “stock split” positions today and I’m sticking to my plan.

With this one I on 8/21 I bought 1 contract of the 1/15/21 $2050 Call. I paid a $495 premium. It split into 5 contracts and I just sold for $140.

Tesla Post 5:1 Split “Sell to Close”

8/21/20 – Buy to Open 1 TSLA 1/15/21 $2050.00 C @ $495.00

8/31/20 – Sell to Close 5 TSLA 1/15/221 $410.00 C @ $140.00 

Profit +$20,500

Here I made $20,500 on a $49,500 investment. It’s a return of 41.4% in 10 days.

I’m not done. I still have another 5 contract Call with Tesla, which at this point is up $26K. I might hold this one. It doesn’t expire until January. I’ll watch the stock closely. I also have an Apple 4 contract Call to expire 1/15/21, a 20 contract Call to expire 1/15/21 and (2) more 4 contract Calls to expire 6/17/22. These are way out so on the Expiration Date I might also hold these.

I really hope some of you readers participated in these stock splits. Please send me an email if you did. I’d like to hear how you did.

Successful Trading,

Steve

The Options Coach