Options GOODIES

[Murphey]

TSLA Trade Monday Entry

Sep Mnly 240 Call @ 12.70 / Delta 49 or so
Sep Mnly 215 Put X 2 @ 4.48 / Delta 21 or so
Dec Mnly 295 Call @ 7.20 / Delta 20 or so

TSLA just broke out of a weekly squeeze this week,
and it's two dots into a daily squeeze break also.

This is a bullish trade with the puts as a hedge.

When price rises my puts go down in delta at the same time
the call deltas rise, and vise versa.

If broad markets weren't so volatile, selling the weekly
put credit spread five dollars wide down at 230 or so
would have been first choice to capture and profit from
theta decay. The calls combined with PCS is an 80% probability
set up. It wins with anything except a quick sharp decline.

Cheers