TSLA put credit spreads leading

    Posted by jackbnimble on 26th of Jan 2022 at 05:15 pm

    TSLA put credit spreads leading into earnings were too tempting to ignore. Opened some 800/790 spreads (just under the 200ma) expiring in two days. As of now, it looks like a quick 8% play. Does anyone have thoughts on using far OTM put credit spreads for earnings? Even at 750/740 strikes, the return could be 2%. Seems like a nice strategy to keep in the toolbox.

    20 Delta I like

    Posted by steverobin on 26th of Jan 2022 at 07:42 pm

    20 Delta I like

    Isnt 20 delta too risky

    Posted by arun on 26th of Jan 2022 at 09:04 pm

    Isnt 20 delta too risky for a stock like Tesla ?

    assuming if it pulls off a move like NFLX

    A 20 Delta sell in

    Posted by steverobin on 27th of Jan 2022 at 05:56 am

    A 20 Delta sell in a spread gives an 80 percent chance of being correct.  I normally employ this type of trade with stocks/indexes other than TSLA.  

    Thank you for sharing. How

    Posted by arun on 27th of Jan 2022 at 06:40 am

    Thank you for sharing. How often did you notice you got called with 20 delta ( even though it says 80%) just your personal experience 

    Which broker gives the best deal for this kind of trades  in terms of locking up capital 

    Looked like a risky move

    Posted by fredsaid on 26th of Jan 2022 at 11:07 pm

    Looked like a risky move to me as well.  I fully expect TSLA to test that area but takes some balls to say it ain't gonna happen in the next 2 days so kudos to jackbinimble.  It's like a 9 to 1 in favor of not gonna happen... but you gotta deal with 2 days of fun ... er sweat .. er fun.  :)

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