A 100% Return Strategy In TSLA - Live Trade

Discussion in 'Options' started by winstonwee, Oct 27, 2021.

  1. Most of us have probably miss the boat on TSLA

    So for those that miss the boat here is a trade for you

    Date 26th October 2021
    Time Frame - 19th Jan 2024 (so about 2 years and 3 month)
    TSLA price at the time of Trade - 1050
    Investment - $10000
    Goal - to double our investment in 2 years (100%)

    If you were to spend $10000 to buy TSLA at 1050 you can probably buy 10 shares of TSLA for $10050 and for you to double your investment TSLA would have to go up to 2100 by Jan 2024 But was that another strategy to achieve our 100% Goal

    Strategy (It is a Live Trade)
    Buy 1 Deep in the money leaps options 800 Call that expire on 19th Jan 2024 for $410.31
    Sell 1 Slightly in the money leap options 1000 Call that expire on 19th Jan 2024 for $316.15
    Net Debit $94.16 or $9416

    What if scenario
    TSLA is above 1000, you will make $20000 on the trade minus off your debit $9413 and hit our objective of a 100% return
    TSLA is between 900 - 1000 you will make some money
    TSLA is between 800 - 900 you will lose some money
    TSLA is below 800 you will lose your total investment

    So the question to you will be do you think TSLA will be above or below 1000 in the next 2 year. If the answer is yes you can take this trade. If you believe TSLA will be below 1000 in the next 2 year than this trade is not for you

    Do you have to hold the trade until expiry
    No, you dont have to and you shouldn't and you can exit anytime you want. My plan is to hit 50% within a year and take off the trade. Hitting 50% in a year is equivalent to 100% in 2 years so still hitting my objective

    The Video of the strategy in detail
  2. i think it will be below 1000. Tesla
    Is another branded car maker in ev like bmw in gas. More traditional car makers are entering the ev market and will compete head to head against Tesla. Tesla autonomous driving is not the best
  3. no problem we have our own view
    than this trade is not for you
    you can buy a deep in the money 1200 put and sell a 1000 put and make 100% the other way round if you think tsla is going to be below 1000
    trend2009 likes this.
  4. great one there
    as long as the short call still has a lot of time value in this case the short call has over $300 time value nobody in the right mind will exercise the call and if they did I would have earn the time value of $300 today instead of 2 years later. I have a long call to protect I can turn around and exercise my call to cover the position

    not a big problem for this
  5. jys78


    It's one way to express your view, but there's no magic here.
  6. VicBee


    I definitely believe that Tsla will be well over 1000 in January 2024. Enjoy the ride!
  7. SunTrader


    50% in one year is ... 50% in one year. Unless you happen to roll that over to a 2nd trade that gains 50% in the following year. But even then that still will be 50% in a year ... two years in a a row.
  8. if I can hit 50% a year I can redo it again next year of course that depend on the situation at that time.
    If I just want a 100% in 2 year and I think tsla can be above 1000 I can hold till expiry but that is not my style
    I choose 2 year is I want to let tsla to grow I could have pick 2023 expiry but that will be a totally different risk reward.
    Options is multi dimension we can just play around with the strike and expiry but ultimately the view must be bullish on tsla. if you are bearish or unsure than you shouldnt take the trade

    well EV is still in infant stage and there is definitely a lot of growth there.
    Think about iphone in 2010 when it just launch, the mobile phone has already been around for decade before iphone launch but when it launch and the take up rate on iphone we know iphone will have a good run for another few years even thou there will be competitor it always will have.

    The same goes for tsla there will be competitor for sure and all traditional car will move to EV in the next few years and tsla has the head start advantage. Others is just coming in. And EV is not the main thing for TSLA, it is the auto driving

    Anyway it is just my view and I can be wrong and I am usually wrong
  9. nursebee


    Where were you on TSLA four or six years ago when your youtube success story started?
    What kind of financial track record do you have with investing your own money?
    Why the H are you saying you are normally wrong?
    You offer financial advice and are normally wrong?
    TrailerParkTed likes this.
  10. I do not offer financial advice I post for my own record and my own learning
    so when I look back 1 year later I can know what my mistake was so I can be wrong lesser in future :)
    #10     Oct 29, 2021
    caroy likes this.