Trade Details & Summary

TSLA Put Debit Spread (LIVE Closing Trade)

Although many people thought we were crazy for getting bearish in TSLA this pre-earnings put debit spread trade made us $200 today.


More Discussion

Was This Helpful? Add Comments/Questions

Show Video Transcript +

In this video, I want to try to go through a closing trade order that we're going to try to make here in Tesla. Tesla is a security, a stock that we traded. We made a bearish put debit spread trade on and I think we actually posted the live opening trade here in the live trading section on the website.

Originally purchased the debit spread for a $270 debit and now as the stock continues to fall, the market actually just opened and the stock is down a little bit more. The spread's now up to about 360.

Now in our case, our profit target on this is around 380 or so is where we ideally want to make this, but right now, the stock actually has earnings coming up in two days. We don't want to be trading through the earnings event because this is just a single directional trade.

What we're going to try to do here is just take this trade off a little bit early. It doesn't quite hit our total full profit target, but again like I said, the stock has had a nice move down. That's obviously helped out and with earnings coming up, we don't want to trade this thing coming up to earnings and then be to a big large move in either direction.

What we're going to try to do here is take this thing off around 370 is what we're targeting. I know it's moving a lot right now so, I actually want to get this order in. Market right now is about 367. We're going to actually throw an order in there a little bit above the market at 370, see if we can't get something filled.

Now naturally, sometimes what you'll see happen is as soon as you actually place the working order for 370, the market will then adjust the price down to 360, try to bait you in a little bit, and I don't think that you have to adjust your order immediately and I think you can wait here a little bit and see if the market gets filled.

In our case, we're placing this order about 9:40 in the morning, again, just about 10 minutes after the market opens. We'll see if we get filled here and pause this video and then come back. All right, so we're back in here now, just about five minutes later and you can see that we actually did get filled on this trade and out at 370, so a little bit of patience.

Sometimes again it does take a little bit of time to fill orders and you don't obviously want to chase the market higher or lower, but in this case, Tesla ended up working out. Quick move down on the stock early to start this Monday and we're out at a nice profit before earnings.

eBook Download

The "Ultimate" Options Guide

Ultimate Options Strategy Guide

The step-by-step guide on how to set up each of the top 18+ options strategies we trade to generate monthly income. Read the whole strategy guide in less than 30 mins and have it forever to reference.

Download PDF

Join More Than 47,345 Members

Membership is always free & you can upgrade anytime to unlock our live trades.