When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.
EXPIRATION of the Tesla (TSLA) December 2024 $270-$275 in-the-money vertical bull call debit spread at $5.00
Closing Trade
12-20-2024
expiration date: December 20, 2024
Portfolio weighting: 10% weighting
Number of Contracts = 12 contracts
Since I have a record ten positions expiring at max profit on the Friday, December 20 options expiration, I am going to start sending out the closing trade alerts so you don’t get overwhelmed.
This is probably the most successful trade alert in the 16-year history of the Mad Hedge Fund Trader. Since I issued it 24 trading days ago, the shares have rocketed by an astonishing 49% above the nearest $275 strike price.
Just to be clear, this position does not expire until after the close on Friday, December 20.
As a result, you get to take home $2,750 or 28.21% in 26 trading days.
Well done and on to the next trade.
You don’t have to do anything with this expiration.
Your broker will automatically use your long position to cover your short position, canceling out the total holdings.
The entire profit will be credited to your account on Monday morning December 23 and the margin freed up.
Some firms charge you a modest $10 or $15 fee for performing this service.
The flight of money right now is from small, undercapitalized, and questionable to large, overcapitalized and rock solid.
It is easy to pick the one company that benefits the most from a Trump presidency and that is Tesla.
One of the most regulated companies in the country is now looking at an absence of regulation. For example, that will bring a much earlier introduction of Full Self Driving in the US, or FSD, already used in China. That can be sold in the US for $15,000 a car. It is unlikely that a Harris administration was ever going to approve FSD for the US.
We also had the enormous advantage with this trade in that the options are sporting a sky-high 53% implied volatility.
For the first time ever, Tesla is not trading off their monthly vehicle sales, which this year have been flat. Instead, the stock is focusing on the company’s long-term goals, many of which are finally starting to kick off profits.
Those would include Full self-driving software (FSD), the global electric charging network, roll out of the Cybertruck and semis trucks, lithium processing, and recycling, solar energy, and industrial-scale battery storage, and other moonshots we haven’t heard about. Wireless charging should go mainstream next year.
These were always the basis of my long-term forecast for the shares of $1,000.
Elon Musk recently revealed the Tesla Robotaxi, bringing 50 with him to give rides to party guests in a Warner Brothers simulated city. Musk, who arrived at the stage in one of the robotaxis - called Cybercab - said production will start in 2027. They will cost 20 cents a mile to operate.
The vehicle will eventually be for sale for under $30,000. Optimus robots served drinks, and the entire event was covered by video drones. The Robotaxis use Inductive charging where they just park over the pad and it gets wirelessly recharged. Elon certainly can put on a show, the stock less so.
Elon Musk really checkmated the rest of the EV industry with his massive price cuts and buyer incentives, which is 35% after adding in newly qualifying government subsidies.
With this trade, I am willing to bet that Tesla shares will not fall below $275 by the December 20 option expiration in 26 trading days.
Tesla will remain the top EV maker for the next decade easily.
Here is the specific accounting you need to close out this position:
EXPIRATION of 12 December 2024 (TSLA) $270 calls at……….....…$138.73
EXPIRATION of short 12 December 2024 (TSLA) $275 calls at….….$133.72
Net Proceeds:……………………………….………..…………........................…$5.00
Profit: $5.00 - $3.90 = $1.10
(25 X 100 X $1.10) = $2,750 or 28.21% in 26 trading days.
