$500 Account Challenge | Tesla Put Credit Spreads

Hey Guys,

Wanted to share my video journal of me growing a $500 account trading Tesla put credit spreads.

The goal is to trade 5 point wide Tesla put credit spreads risking $500 collateral, with an expiration 3 weeks out. For the strike, I will use support / resistance areas combined with the average true range indicator.

The goal is to receive ~10% credit for each trade. If the trade gets into trouble (price is close to my short leg) I will roll further out (hopefully for a credit) to give myself time.

I go through all the detail and my first trade in the video diary below. Any questions please let me know.



Thanks,
OGT.

 

G'luck!

 

Thanks so much! The first trade is over 60% in profit so will be looking to roll next week.

 

I don’t think you mentioned at what delta is your short strike? Also, are you paying commissions?

 

The delta was around 0.3. Yes I am paying commissions. I will start to add these to my ROI

 

Here is part 2 of the journey!

- Rolled the first trade up and forward for another net credit.

 

So what happens if TSLA tanks, are you prepared to loose 100% of this account? Let’s say you double the account, are you going to trade $1000 in the same way until you either double it again or loose it all?

 

If the price drops to around 1,100-1,050 I would roll out at the same strike (or down) a few more weeks to give myself more time to be right. Hopefully, there will be enough theta to make this roll a net credit. If not, then I would either roll out further or take a small net debit.

 

Part 3 of the journey has now been posted. Appreciate your support thus far!

- Tesla has dropped so had to roll out to January to receive a net credit. Fairly comfortable with my position

 

Part 4 is up! We know that Tesla has been selling off but thankfully Elon tweeted he is done selling his share and Tesla popped up over the past couple of days. This has allowed me to roll for another net credit!