TSLA two week trade setup

On November 19th TSLA set up nicely for a 13% OTM trade for a 105/100 spread for a 31 calendar day duration (December 21st expiry) which was a 17.6% return. I didn't track the trade to see if there was a benefit in closed it early for a partial profit.

Here is the post TSLA Trade Set up

Today there is another nice example of a short term high probability trade set up in TSLA.

The IV Rank is at 58, highish which is good. The weekly options are priced nicely to provide a decent spread trade return. The expiry is the December 13th and the setup is at a different strike as the 10 trade day has shown a 90% win rate with spreads that are set 8% OTM. While it might seem to be adding to the existing trade, it's not. I could go on about the chart set up at the low price that it might be set to head up and increase the odds in favour of the put spread, but with 90% historical success, I wouldn't bother.

8% OTM is around 115 so the 115/111 for a $4 strike spread for the most bang for the buck at $55 profit (ROR near 16%). As usual, for the purposes of analysis, I consider that I am just hitting the bid and ask prices to get filled, I could easily go for the mid price and grab a few more dollars but this skews the trade slightly against me for profit considerations.

Jeff.