Welcome to "The 300% Club"

In investing any time someone doubles their money, or gets a 100% return, it’s called a “Home Run” You are then playing with “House Money” meaning you made more than you spent. That’s always good. With Options it’s a pretty common occurrence for those that are experienced, disciplined and diligent

Then there is a certain “mystique” if you will about having a 300% return
Especially when a trader can do that in one single trading day
Today many traders for the first time in their trading lives joined “The 300% Club”
Congratulations to them, and welcome to “The 300% Club”

You probably guessed it, it was with TSLA
After it opened up 14% this morning it then closed the day up 22%
It’s been one that I have been hesitant in sharing due to it’s volatility
And the Options pricing on it are not always in “fair value” range
Meaning that they can sometimes be overpriced for what we get

Lately I’ve spoken a lot about taking opportunities when they are there
TSLA could do one of three things here
1st: Stall, doubtful
2nd: Bulls take profits and price reduces
3rd: Keep marching north

If you like the 3rd possibility and are looking for a entry here is the advantage
Prices got a reset after earnings today with I.V.
Deltas are still generous even after this giant spike today
This is NOT one I would suggest anyone go all cowboy and try to take Blind Calls on here unless they are a highly skilled day trader and or willing to take on some heavy risk
Trader Tip::: We never buy a stock when it is having a down day
Bull Call Spreads are back in fashion here
For NOV 15, 2024
The 260 / 270’s are going for 4.15 at the MID
For more conservative investors the 260 / 265’s are 2.17 at the MID

The DEC 20, 2024’s could be used at those strikes also
That would give an investor more protection but the MID would be slightly more on those
The 260 / 270 only goes up to 4.50 at the MID
That’s still in “fair value” range

We are still working on a possible “portfolio rebalance” here at theoptionscoach.net 
Tomorrow is another day

The Options Coach