How I'm Trading TSLA Options (Position Breakdown, Risk-Free $10,000 Call Spread, Management)
trade stocks September 6th. 2020, 3:03pmNeed a brokerage account? Get one projectoption course for free when you open and fund your first tastyworks brokerage account with ,000 or more: https://www.projectoption.com/free-options-trading-course/
Learn More About tastyworks: https://www.projectoption.com/tastyworks/
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Tesla (TSLA) is currently the stock market’s hottest stock, and options traders are having a field day with the price movements as well.
In this video, I break down:
1) My Full TSLA Position (Stock + Options)
2) How the 5-1 Stock Split Impacted My Options
3) How I Created a Risk-Free Call Spread with ,000 in Profit Potential
4) How I’ll Manage the Position in the Event of a TSLA Stock Price Crash
Understandably, you may not agree with my bullish stance on TSLA long-term. I am not suggesting or recommending that you trade TSLA in a certain way, and you should do your research before entering any positions.
These highly speculative positions are my own and I am fully aware of the risks that are present in them. Do not follow these positions as your entry prices will be much different than mine, resulting in different risk/reward profiles.
I hope you enjoyed this video. Please let me know in the comments if you’d like to see more videos like this in the future!
– @Chris Butler
==== ADDITIONAL RESOURCES / VIDEOS MENTIONED ====
My 2nd YouTube Channel (Finance/Investing/Other): https://www.youtube.com/channel/UCQIPHXnm7ODW0HAdfCr1yDw
Options Trading for Beginners (The ULTIMATE Guide): https://youtu.be/7PM4rNDr4oI
Tesla Battery Day Articles:
https://www.cnet.com/roadshow/news/tesla-battery-day-elon-musk-upgrades/
https://finance.yahoo.com/news/experts-disagree-tesla-battery-day-160850483.html
Elon Musk’s updates to Tesla Battery Day show we have no idea what will happen
UPDATED Version of this Video (Options Trading for Beginners: The ULTIMATE In-Depth Guide): https://youtu.be/7PM4rNDr4oI
Get One projectoption Options Trading Course for FREE When You Open & Fund Your First tastyworks Brokerage Account:
https://www.projectoption.com/free-options-trading-course/
Learn More About tastyworks: https://www.projectoption.com/tastyworks/
Open a tastyworks Account:
https://start.tastyworks.com/#/login?referralCode=PROJECTOPTION
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In this options trading video, you’re going to learn the most essential options trading concepts you need to understand as a beginner.
We’ll cover each topic in-depth and provide examples to convey each concept intuitively:
1) Buying Call Options
2) Buying Put Options
3) Selling Call Options
4) Selling Put Options
5) Why Do Option Prices Change?
6) Intrinsic/Extrinsic Value & Time Decay
7) Exercise & Assignment
8) What happens when an option expires?
And much more.
Additionally, you’ll be exposed to the tastyworks trading platform during many of the examples so you can see each concept applied to the real world.
After this video, you will have a deep understanding of core options concepts, which will lay a solid foundation for you as an options trader.
=== Additional Videos to Watch ===
UPDATED/NEW Options For Beginners Video: https://youtu.be/7PM4rNDr4oI
My Finance/Investing YouTube Channel: https://www.youtube.com/channel/UCQIPHXnm7ODW0HAdfCr1yDw?sub_confirmation=1
Intrinsic & Extrinsic Value: https://youtu.be/IUnBPMEXK30
Option Exercise & Assignment Explained: https://youtu.be/jFGzRCze-ds
Options Expiration Explained: https://youtu.be/BDLevympTzA
Extrinsic Value/Time Decay: https://youtu.be/pyqEJID_zOw
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Compensation Disclosure
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This site receives compensation for referred sales of some or all mentioned products.
September 6th, 2020 at 3:55 pm
UPDATE: TSLA now at $375 per share, down over $100 since I made this video. The position is doing just fine, but obviously down. Overall, still up $18,000 on the position. The 300 puts that I purchased are up $4,200, therefore reducing the overall position's loss by that amount. Hoping to do an update video today (Friday, September 4th). Stay tuned!
September 6th, 2020 at 4:46 pm
I listened to the beginning where you said it's crazy how high they've run up and you don't think it will come down cause that's just not how the market works…
September 6th, 2020 at 5:21 pm
great topic good to see you again. how'd you handle last Thursday and Friday? What is your risk hedging technique for somewhat unexpected selloff events like last Thurs/Fri?
September 6th, 2020 at 5:21 pm
Nice zero risk play..I play them several times per week on others👍😎 I call them ghetto spreads
September 6th, 2020 at 6:18 pm
Hey man how can someone learn from you?
September 6th, 2020 at 6:48 pm
How's that working out now LOL
September 6th, 2020 at 7:01 pm
Curious how did you buy a long call spread at 0 price.
September 6th, 2020 at 7:41 pm
Little did he know…
September 6th, 2020 at 8:15 pm
Do you have AAPL?
September 6th, 2020 at 9:14 pm
@ projectoption Hi, Do you look for certain Price action pattern, new highs, S/R, technical SMA-stuff ect? I watched a lot of tastytrade(and your channel of course) and they often say that the markets are random, if thats true, wouldnt that mean that I could just pick one stock that fullfils the basic criterias: IVR>50+Liquid and sell a option with delta around 16? I wanted to ask how do you choose from a list of underlyings that all fullfil the stated criteria? You make great content!
September 6th, 2020 at 10:07 pm
Help please. I have a Tesla call that's way out of the money and want to hedge it with a short call. How can I add a short call making it a spread? I can't sell a call as i dont have 100 shares, but would love to learn how to tie it to existing long call to make it a spread. My platform is RH
September 6th, 2020 at 10:30 pm
why dont you simply sell the TSLA long call 800 when it goes up but adding a short call 700 position? Isn’t it the same because you can lock your profit? What is the benefit of doing so?
September 6th, 2020 at 11:03 pm
Hey chris, loved your iron condor visualization video. Could you make a similar video on iron butterflies ??
September 6th, 2020 at 11:05 pm
Great vid 👊🏼
September 6th, 2020 at 11:09 pm
2 days later, complete destruction, ☹️
September 6th, 2020 at 11:59 pm
Thanks for sharing your strategies! Love hearing about them 💚.
September 7th, 2020 at 12:18 am
Are long call spreads a viable alternative to buying put credit spreads. How does time decay affect a long call option overtime lets say greater than 120 days. If possible could you do a video or maybe you have one i can refer to that explains what happens to a Long call option bought 120 days out behaves. I know in a put spread I sell the premium.
September 7th, 2020 at 1:10 am
Thanks Chris for reply, in this correction would u consider buying TSLA Sep 25 $550 Call in a dip as a tool to recover all losses? In other words will TSLA hit anywhere $550 – $600 till battery day ?
September 7th, 2020 at 1:45 am
RIP to his positions
September 7th, 2020 at 2:16 am
Hey Chris, did u just sell a naked Call option if 800? If yes, how do you close it? You bought it separately than 700 call, would it be considered as a joint spread or a separate naked call ?
September 7th, 2020 at 2:49 am
This video is TERRIBLE. Please watch the NEW and IMPROVED VERSION of the "Options Trading For Beginners" video: https://youtu.be/7PM4rNDr4oI
September 7th, 2020 at 3:36 am
54:51 for an overview. Thank me later 😉
September 7th, 2020 at 3:55 am
If the stock price goes against your position before the expiration date, do you sill lose the money or does it have a chance to make it back to break even or make a profit before the expiration date.
September 7th, 2020 at 4:28 am
excellent video. Thanks a ton
September 7th, 2020 at 5:22 am
Great video, I learned a lot from it, thanks for posting
September 7th, 2020 at 5:59 am
Hi maybe you can add a summary page somewhere or in the future, explaining that: The profit of Options buying (whether it is call or put) is generated as a result of the movement in underlying stock price, while the profit of Options selling (whether it is call or put) is generated from the premium collected.
This may help ppl to grasp the overall idea that differentiates the buy vs sell, and stock vs option price. Because as a total noob that being bombarded with a lot of information, I found that somehow we could still get confused between the underlying price and the option price.
September 7th, 2020 at 6:01 am
Very in-depth and informative. Being a beginner and this my first video on options, I'm still a little confused. But I imagine that's pretty normal.
Do most platforms have a similar spreadsheet when buying options? I'm currently using Robinhood and I don't believe they contain such a spreadsheet when trading.
September 7th, 2020 at 6:02 am
To quote Peter Lynch, the most successful mutual fund manager of all time, on options:
"Time is on your side when you own shares of superior companies. You can afford to be patient–even if you missed Wal-Mart in the first five years, it was a great stock to own in the next five years. Time is against you when you own options."
Beating the Street (Simon & Schuster, 1993), p. 305
September 7th, 2020 at 6:15 am
Thanks very much, i learnt a lot from ur videos, the only video which made me understood, awesome.
September 7th, 2020 at 6:42 am
I kept winning with Mr Jackson Bull for months,I had to sign up to his company to start also as a trader.I trade also
So trust me Mr Jackson Bull is the best when you think cryptocurrency trading.
I met Mr Jackson Bull for the first time in a conference in London,I invested $25,000 and traded in one month making close to $200,000
September 7th, 2020 at 6:56 am
I have a question: if you buy an option, and then sell it, will the broker see you as an option seller? So will you risk to be choosen?
September 7th, 2020 at 7:12 am
amazing, easy explanation
September 7th, 2020 at 8:07 am
I love your videos and have subscribed. I appreciate the clear (no drama) explanations and examples.
September 7th, 2020 at 8:18 am
This is the best video I found on options! Yes, very confusing for the beginners, but I am going to watch these a few more times 🙂 Thank you for making this video.
September 7th, 2020 at 9:04 am
Investing in the stock market is quite profitable, that's if you have the right guidance/signal on how to go about your trades..that's why i recommend Mr Benjamin Charles i just got in contact with him and he is honest, I made an investment of $2600 at first and then made a profit of $6200 in just 2 weeks Mr Benjamin is truly a legit trader.
September 7th, 2020 at 10:00 am
I am a complete beginner when it comes to options trading, actually what is the level before beginner, lol. I didn't hear it mentioned in this video but can't you also minimize or mitigate risk by already owning the shares, I think it is called covering your calls? Is there also a version of covering your puts? The examples given in this video were what is known as naked trades right (vs. covered trades). I am still trying to get the basic terminology down. If an option is exercised, at what point does that occur? Is it after the expiration and within a certain time frame? I think I had already watched the newer version of this video, I think it was around a 3 hour video. I am going to have to watch it again, maybe more of the info will sink in.
Love the video, very informative. Please don't take this wrong, I have one suggestion for you so you can make your content even better. My suggestion is to NOT edit out your natural pauses during speech. Those natural pauses are mainly there to give the listeners time to absorb information. They can also be used for emphasis and a longer pause can be a cue of drama, excitement or anticipation. I have seen some videos that completely remove pauses and many of them are people who speak much faster than most people which compounds the problem. Their videos are really bad as they force their audience to expend all their energy just to keep up with them. Yours isn't too bad because you speak at a fairly normal rate of speed but this topic makes it bad, lol (at least for me since I have very limited knowledge of options trading).
September 7th, 2020 at 10:47 am
My brain is fried now!! I need help.
September 7th, 2020 at 11:44 am
I made my first millions trading stock options as a beginner with the help of a professional stock broker, Elizabeth Hildreth Groh. I met her at a trading conference and she agreed to assist me build my portfolio after I made a lot of losses trying different strategies I watch online, I will recommend her for beginners to avoid the mistakes I made as a novice, you can reach her on instagram, or telegram, Just search with her name Elizabeth Hildreth Groh, she's quite known.
September 7th, 2020 at 12:43 pm
Holy shit I finally get it. Great video!!
September 7th, 2020 at 1:34 pm
i have watched plenty and plenty of videos about options. you were the first one that made me actually understand it. good content, simple explanation. TOP 👌