TSLA - Credit Put Spreads

Apr 20, 2023

Options Trade - Credit Put Spread
150 / 145
May 5 Expiry

A Margin Crunch which impacted Tesla's bottom line - which has pushed share prices downwards towards long term support / resistance, I expect the price to find stability here. I find no other reason for the stock price to take a continued hammering, at this level.
China relations remain an extra sensitive risk to TESLA, but i dont find any cause for concern on that front in the coming weeks.

I will be a continued buyer of these spreads deep into the resistance zone, as the trade MAY very well go against me for a time.

Good luck.

Apr 20, 2023

Note

If we fail at 161.4 I will look to add to this position towards 154.00

My entry Goal is to keep 50% of my desired position size in reserve until price stabilizes. Where ill reanalyze and possibly add the remaining.

Our Stop Loss will vary with timing,
Closing is not a serious consideration at this time, though,

Stick with Simple:

50% drawdown on the credit received is where we consider a good Safety Net
~1.30 per contract for us.

Apr 20, 2023

Note

160 Psychological level may provide support / resistance.

A failure at 161.40 (mentioned in my previous comment) should be adjusted to consider the 160 psychological before making any additional adds to the position.

Apr 21, 2023

Note

We added this morning when prices fell.

Were holding the position, hopeful to let this trade play out and keep all that beautiful premium as the options volatility subsides and the stock price stabilizes.