The market rebounded after last Friday’s sell-off and Tesla was up almost 5%. I took the opportunity to close the PUT contract that I sold last Friday. I collected $5,150 in premium last Friday when I sold a TSLA PUT at a strike price of $1,000, expiring on 31 December. As the share price increases, the value of the premium drops and I bought the PUT contract for $3,650 and thus, making a profit of $1,500.
I then sold another PUT contract at a higher strike price and collected a higher premium. Details are as follow:
Type of Option: Cash Secured PUT
Strike Price: $1100
Bought when Tesla was at $1133
Date of Expiration: 31 Dec 21 (32 days contract)
Premium Collected: $7,200 (6.55% returns)
In other trading activities, I sold my Alphabet LEAPS that is expiring in Sept 2022 for a profit of $420.
I also sold weekly covered calls for my 900 units of Palantir shares, strike price $21, expiring 3 Dec 21, for a total premium of $342 (1.36% for 4 days duration).
Finally, I bought the cheapest TSLA Call LEAPS that I can find for Jan 2024. Details are as follow:
Type of Option: LEAPS CALL
Strike Price: $2475
Bought when Tesla was at $1131
Date of Expiration: 19 Jan 24 (781 days)
Delta: 0.37
Premium paid: $18k
Related Article:
The Newbie’s Guide To Options Trading
Learning Investment With Jason Cai 