Tip:
Highlight text to annotate it
X
good afternoon folks you're looking at the markets on the may thirty first
this is friday afternoon around two pm eastern time
slide down draft in the markets nothing really
it's been hollering around flat line for most of the day maybe a
couple points down
it also went up by a couple of points the pics seats the up a
little bit
but what we are looking at is
TSLA trade so if you look at TSLA
uh... this was the short strangle so a short strike price is initially yet
put it at ninety seven point five
and one twenty five
and then ... yesterday when TSLA started to go down it didn't seem like
one twenty five was going to be a likely target at any point so
i cashed in two thousand dollars profit on that
and i brought the strike price down to one fifteen so at that point regard
dollar forty five cents for that and so today can see it is a great profit
the all or i think it's going to expire workless and this was exactly
what we had anticipated
or at least what we thought should happen and that's exactly what it is so
let me
show you the risk graph and this is where we are
you can see that the white line is almost touching the expiry line of
course we have a couple of hours to go so i'm just going to let it expire but
this was the short strangle it was a volatility play
the
the weekly as if you see
this is the season we're talking about so as you saw now
the volatility has come down to fifty four
this was actually very very high it was high .around hundred and twenty
percent
and obviously as we approach expiry everything we know the
volatility has to come out of it
and so we took advantage of that two days ago we put the straight
and so they're gonna cash in about well, from what is remaining here
max profit's gonna be ten thousand two hundred and fifty if you
look at the bottom left side
and then i'd cashed in two thousand dollars on the one twenty five call
so this is about a twelve thousand five hundred dollar
trade and this we gathered in two days of course i had fifty contracts the
margin was about seventy five thousand so that's pretty good twelve
thousand dollar profit on a marginal seventy four thousand
so which is definitely about fifteen percent in about two days
so fifteen percent to eighteen percent so that's the kind of
other than's we got from the straight
but of course you know it's a short strangle so you have to
watch out that you've put your strike price
as comfortable as possible and of course we had down to the last two days so
even if you did put this position you would have had to monitor it
so these are two requirements of
this position
you do have to watch it because and one thing is TSLA can move
and TSLA showed that it can move
just in the last two days it's gone from between a hundred and a hundred and
twelve at least two or three times so TSLA can really really move
so anyway that's the trade i think we're gonna let it expire
cash in on about twelve thousand five hundred that would be about eighteen
percent on
in two days