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) - BUY
Buy the Tesla (TSLA) March 2025 $210-$220 in-the-money vertical bull call debit spread at $8.80 or best
Opening Trade
2-28-2025
expiration date: March 21, 2025
Portfolio weighting: 10% weighting
Number of Contracts = 12 contracts
I am going to use the sell-off prompted by the disastrous White House meeting between Trump and Zelinski to bottom fish in Tesla. While the bleeding in Elon Musk’s company is probably not over, I don’t think we are going to reach a total selloff of 56% in the next 15 trading days.
An implied volatility for the options of 63% is like free money in the bank.
Besides, if I can’t buy the market with my own Mad Hedge AI Market Timing Index at 18, I should consider another line of work.
You may have to play around with the strike prices and scale in to get this trade done. Executing spreads 27% in-the-money is more art than science, and posted prices in the market are more theoretical than real.
Therefore, I am buying the Tesla (TSLA) March 2025 $210-$220 in-the-money vertical bull call debit spread at $8.80 or best.
DO NOT USE MARKET ORDERS UNDER ANY CIRCUMSTANCES.
Don’t pay more than $9.40, or you will be chasing.
Simply enter your limit order, wait five minutes, and if you don’t get done, cancel your order and increase your bid 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 $8.80, $8.90, $9.00, $9.10, and $9.20. You should get done on some or all of these.
With this trade, I am willing to bet that Tesla shares will not fall below $220 by the March 21 option expiration in 15 trading days.
Tesla will remain the top EV maker for the next decade easily.
Here are the specific trades you need to execute this position:
Buy 12 March 2025 (TSLA) $210 calls at……….…...$82.00
Sell short 12 March 2025 (TSLA) $220 calls at…….$73.20
Net cost:………………………….……….………............……$8.80
Potential Profit: $10.00 - $8.80 = $1.20
(12 X 100 X $1.20) = $1,440 or 13.64% in 15 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.
