Trade Alert - (TSLA) April 16, 2024 - STOP LOSS

When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.

Trade Alert - Tesla (TSLA) – STOP LOSS

SELL the Tesla (TSLA) April 2024 $140-$150 in-the-money vertical bull call debit spread at $8.90 or best

Closing Trade

4-16-2024

expiration date: April 19, 2024

Portfolio weighting:10%

Number of Contracts = 12 contracts

News that Tesla was going to cut 10% of its staff was the deal killer on this trade. That’s unfortunate because a week ago we were near max profit. Such is life in the stock market.

While we are still well above our nearest strike price, the momentum is definitely going in the wrong way. With three days to expiration, there is not enough time for things to go wrong and then go right again.

Therefore, I am selling the Tesla (TSLA) April 2024 $140-$150 in-the-money vertical bull call debit spread at $8.90 or best.

DO NOT USE MARKET ORDERS UNDER ANY CIRCUMSTANCES.

Simply enter your limit order, wait five minutes, and if you don’t get done, cancel your order and lower your offer by 10 cents with a second order.

This was a bet that the Tesla (TSLA) would not trade below $150 by the April 19 option expiration day in 4 trading days.

Here are the specific trades you need to execute this position:

Sell 12 April 2024 (TSLA) $140 calls at…….......….…$15.00

Buy to cover 12 April 2024 (TSLA) $150 calls at….….$6.10

Net Proceeds:………………………….……….……..........…$8.90

Loss: $9.20 -$8.90 = $0.30

(12 X 100 X $0.30) = $360, or 3.26%.

If you are uncertain about how to execute an options spread, please watch my training video by clicking here.

The best execution can be had by placing your bid for the entire spread in the middle market and waiting for the market to come to you. The difference between the bid and the offer on these deep-in-the-money spread trades can be enormous.

Don’t execute the legs individually or you will end up losing much of your profit. Spread pricing can be very volatile on expiration months farther out.

Keep in mind that these are ballpark prices at best. After the alerts go out, prices can be all over the map.

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