Get started
Tesla
Short

TSLA option trade

By ncy12
Updated
TSLA reached my earlier target

TSLA option position



As it is at multiple levels of resistance (200 day EMA, 50% retracement of the down trend, previous support at around 220 now acting as resistance etc), I suspect it might retrace some of the up move. Here is my trade

  • Buy March 17 200 put
  • Sell March 17 185 put
  • Sell March 17 180 put


You can see the P/L graph on the chart. I opened the trade for a credit of $0.80. Even though this is a short position, I don't have any upside risk here. As for downside, here are the scenarios at expiration

  • Closes above 200, I keep the $0.80 credit
  • Closes between 200 and 185, I get up to $1500 based on where it closes
  • Closes between 185 and 180, my profit will be $1500
  • Closes below 180. I will be assigned 100 shares of TSLA at 180 and based on where it closes I will start losing my profit. My loss starts at 165.


I will exit this trade long before expiration if I get around 50% of the profit. I have a GTC order in place to do so.
Trade closed manually
Closed the trade for about 1/3 of the width profit (5-6 points of the total 15 points).
FibonacciSupport and ResistanceTrend AnalysisTesla Motors (TSLA)
ncy12

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.