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) November 2024 $320-$330 in-the-money vertical bear put debit spread at $8.80 or best
Opening Trade
10-25-2024
expiration date: November 15, 2024
Portfolio weighting: 10% weighting
Number of Contracts = 12 contracts
Tesla has now gained a staggering $120 billion in market capitalization in two days since its blockbuster earnings report. It is the largest gain in market cap in the shortest amount of time in history. The stock is now 23% up on the week and 50% above the August low. It is now right at major upside resistance.
While I believe that Tesla will break out someday, it won’t on this run, and certainly not in the next 15 trading days.
Therefore, I am buying the Tesla (TSLA) November 2024 $320-$330 in-the-money vertical bear put debit spread at $8.80 or best.
Don't pay more than $9.40 or you'll be chasing.
DO NOT USE MARKET ORDERS UNDER ANY CIRCUMSTANCES.
If you live in a foreign time zone when the US stock market is closed, such as Australia, simply enter a spread of Good-Until-Cancelled orders overnight, like $8.80, $8.90, $9.00, and $9.10. You should get done on some or all of these.
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 rise above $320 by the November 15 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 November 2024 (TSLA) $330 puts at………....…$65.00
Sell short 12 November 2024 (TSLA) $320 puts at…….$56.20
Net cost:…………………................………...……….……………$8.80
Potential Profit: $10.00 - $8.80 = $1.20
(12 X 100 X $1.20) = $1,440 or 13.64%
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.