Selling Put Option and Make $1000 a week Trade Journey #6
As I was made money last week for the trading option, I purchased 3 more shares of Tesla today @ $582.96. The price is irrelevant to me at the moment since I just wanted to gather as much as tesla stock at the moment. At the same time, I wanted to play the selling option to maximize the return with it.
As I wrote the Etsy has gone up significantly on Friday, I do believe it can go up but there is little chance that it will go through the $170 mark by the end of Friday. The probability of happening is less than 24% at the moment (Delta of 0.24 as of 12:08 pm). So I made an Iron Condor strategy on Etsy for this week. The current price is at $160 so as long as the price does not go down below $150 or go up above $170 I will get full price. Otherwise, I need to play adjust the price accordingly.
As I am bull on a Tesla, I also believe it will not go down below $530on this week. if so I would lose about $4.1 per share which will be a maximum loss of $4100.
Lastly, I trade DocuSign (DOCU) due to it has an earning on this Thursday. DOCU has been a good pandemic stock and I don't think it will be going away anytime soon. It had the highest price value of $290 before the November crash of tech. I do believe the earning should be still great since we are in the middle of a pandemic and it cannot be changed in the foreseeable future. However, I cannot predict the earning season, so I am playing 220/217.5 spread which is $2.5. The maximum loss will be $1.6 per share which is around $1600. This will be pure speculation on it.
Closed Trade:
None
Open Trade:
TSLA: purchased 3 more shares of Tesla @$582.96
ETSY: 10 Dec 4 170/175 Call Vertical @ 0.5797
TSLA: 10 Dec 4 530/525 Put Vertical @ 0.8996
DOCU: 10 220/175.5 Put Vertical @ 0.8996
Current Position:
WORK: 5 Dec 20 40 Call @ 3.2051
SQ: 10 Dec 4 195/200 Put Vertical @ 0.8696
ETSY: 10 Dec 4 147/150 PutVertical @0.9796
ETSY: 10 Dec 4 170/175 Call Vertical @ 0.5797
TSLA: 108 shares
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I am not a financial advisor. Any trades listed are my own personal trades and meant for educational purposes only.
Option trading bears high risk and high return strategy for trader.