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.
Trade Alert - TSLA - TAKE PROFITS
Sell the Tesla (TSLA) February 2025 $300-$310 in-the-money vertical bull call debit spread at $9.80 or best
Closing Trade
2-12-2025
expiration date: February 21, 2025
Portfolio weighting: 10% weighting
Number of Contracts = 13 contracts
In view of Tesla’s rapidly deteriorating fundamentals and apparently no one at the help, I think it’s prudent to take 90% of the maximum potential profit here. The risk/reward of continuing is no longer favorable. I’ll leave the last 10% for the next guy.
Tesla Tanks after Chinese competitor BYD announces a partnership with DeepSeek. The move is expected to accelerate BYD’s move into full self-driving. Tesla sales are falling in all major markets. Call it DeepSeek bite part 2.
As a result, the company’s shares have suffered one of the most dramatic selloffs in its history, down 34% since its December highs. With Tesla sales in free fall worldwide, it is not what traders wanted to hear.
Therefore, I am selling the Tesla (TSLA) February 2025 $300-$310 in-the-money vertical bull call debit spread at $9.80 or best.
As a result, you get to take home $2,340 or 22.50% in 20 trading days. Well done, and on to the next trade.
DO NOT USE MARKET ORDERS UNDER ANY CIRCUMSTANCES.
Simply enter your limit order, wait five minutes, and if you don’t get done, cancel your order and lower your offer by 10 cents with a second order.
If you live in a foreign time zone when the US stock market is closed, such as Australia, or don’t want to sit in front of a screen all day, simply enter a spread of Good-Until-Cancelled orders overnight, like $9.80, $9.70, $9.60, $9.50, and $9.40. You should get done on some or all of these.
Here are the specific trades you need to execute this position:
Sell 13 February 2025 (TSLA) $300 calls at…………………......…$47.00
Buy to cover short 13 February 2025 (TSLA) $310 calls at…….$37.20
Net cost:………………………….……….……………………...................…$9.80
Profit: $9.80 - $8.00 = $1.80
(13 X 100 X $1.80) = $2,340 or 22.50% in 20 trading days
If you are uncertain about how to execute an options spread, please watch my training video by clicking here.
The best execution can be had by placing your bid for the entire spread in the middle market and waiting for the market to come to you. The difference between the bid and the offer on these deep-in-the-money spread trades can be enormous.
Don’t execute the legs individually, or you will end up losing much of your profit. Spread pricing can be very volatile on expiration months farther out.
Keep in mind that these are ballpark prices at best. After the alerts go out, prices can be all over the map.
