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Tuesday, February 16, 2016

Tesla (TSLA) Feb Put Options

Friday 2/12/2016 (11:04:31 am, PT) FP

sold (open) -10 Feb 2016  $123 puts at $0.35

Why did I place this trade?

  • stochastics in oversold region
  • TSLA just reported earnings (so no more surprises)
  • implied volatility still high (so high premiums)
  • 3-day weekend (so 3 days of theta time decay ... I LOVE 3-day weekends)
  • 94% probability of success (high)

Tuesday 2/16/2016 (12:32:19 pm, PT)

buy back all 10 puts at $0.03

This is absolutely amazing.  My trade filled at $0.03 even though the "mid" price was $0.14.  
I figured the market makers must have wanted to make $30 instead of nothing.  Good for them for taking my bid!

PROFIT:  $320 (in TWO trading days!)


SELL PUT OPTIONS when the IV is inflated.
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