Selling to OPEN TSLA $358.00 puts expiring 9/27 for $3.95
10% of capital, if exercised
One of the way to benefit from selling that's overdone without taking direct long exposure is to sell out-of-the-money puts. Puts with a strike price below the current market price of the stock.
As much as I think TSLA is a short, it's sold off extremely hard in the last few days. So I think it will pause and consolidate for a bit.
If selling keeps up, I still get some downside protection by being ~10% more below the market price.
If the stock goes higher, my puts move to zero and I win. If it stays flat, I also win as the time premium of the option burns away.
If everything goes according to plan, I should make at least 0.5% to 1% on my money in a few days - if not sooner. That's pretty good.
Comments
Post a Comment