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.
Buy the Tesla (TSLA) April 2025 $160-$170 in-the-money vertical bull call debit spread at $8.80 or best
Opening Trade
3-21-2025
expiration date: April 17, 2025
Portfolio weighting: 10% weighting
Number of Contracts = 12 contracts
I think the time is approaching when shareholders demand that Elon Musk resign from DOGE and return to Tesla full-time. The stock has suffered a staggering 55% decline and is down nine consecutive weeks, a record. If Musk does resign, the stock could pop $50 immediately.
It has been the fastest destruction of equity capital in history. The shares are now at the rare 1,000-day moving average, meaning that anyone who bought the stock in the last three years is losing money.
With this trade I am willing to bet the rout does not extend to 82% in the next 20 trading days. With implied volatility for the options still at a sky-high 70%, we are being richly paid to take the risk.
Picket lines at showrooms and arson attacks against dealerships and charging stations are never a good sign for business. Elon Musk says he doesn’t care. I believe him. All of that is now in the price. Time to buy.
Therefore, I am buying the Tesla (TSLA) April 2025 $160-$170 in-the-money vertical bull call debit spread at $8.80 or best.
DO NOT USE MARKET ORDERS UNDER ANY CIRCUMSTANCES.
Do not pay more than $9.30 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.
The best way to get a fill if you 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.
Here are the specific trades you need to execute this position:
Buy 12 April 2025 (TSLA) $160 calls at………………….…$82.00
Sell short 12 April 2025 (TSLA) $170 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 13.63% 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.
