Out of 1 of My Tesla Long Calls

Yesterday I bought a bunch of options on different stocks to start my week. As soon as I bought them most of them dropped down with the market. One of the stocks that dropped was Tesla (TSLA). A few minutes after I bought an option the stock went down $10. While it was down I bought another option. TSLA is up about $11 as I write; The first option I bought is up a few hundred bucks but the second one I bought, at the lower price, is up more and I just sold it.

The one I sold was a 1 contract of TSLA 1/10/25 $380 Call. I paid $29.50 and I just sold for $39.50 for a $1000 profit in one day.

12/9/24 – Buy to Open 1 TSLA 1/10/25 $380.00 C @ $29.50

12/10/24 – Sell to Close 1 TSLA 1/10/25 $380.00 C @ $39.50

Profit $1000

When it comes to buying options I will repeat myself forever, I go out a bit with my Expiration Date but I will sell when I’m happy with my profit. $1000 in one day, I am happy! And this money goes into my mattress. I invested $2950 and I have a profit of $1000. That is a Return on Investment (ROI) of 33.8% in one day.

I could have bought an option expiring this Friday and made a much higher percentage on my investment but I would not have had the protection I had going out to January 10th.

As I write TSLA is still moving up. Once I have a $500 profit on my other Call I will place an order to sell.

 

Successful trading,

Steve

The Options Coach