Tesla absolutely crushes it when they announced their Q4 delivery numbers yesterday. Tesla shareholders should be beaming with excitement now because that could translate to a sharp rise in share price when the market opens today.
To give a summary of what they have achieved in Q4 and in this year, you may refer to this screenshot.
I have always believed that Q4 is Tesla’s strongest quarter as they usually announce record sales for the whole year and that would lift the share price. With the recent news that CEO Elon Musk has finished selling 10% of his Tesla shares to raise funds to pay tax and this blowout quarter delivery, Tesla’s share price could go to the moon today.
What I Intend To Do Now?
This is how I intend to capitalise on the uptrend if Tesla’s share price were to go up later. I am planning to buy a deep OTM Tesla LEAPS that is expiring on 16 Sept 22, with a maximum strike price of $2.475. According to last Friday’s closing price, the premium costs around $21.80.
However, it is likely to be more than that if Tesla were to trade higher on opening today. I will be buying this LEAPS contract and later selling it when the momentum stops/ reverses. I did something similar on October 25 when news broke out on Hertz was ordering 100,000 vehicles from Tesla and made 173.18% in 10 days for the LEAPS contract that I bought on that day. It is worth noting that I bought the LEAPS when Tesla was trading at $1025, which was slightly higher than the closing price of $1024, and still made a crazy return out of it.
LEAPS is the most powerful options strategy that gives you magnified returns if the stock is on an uptrend. More than 80% of my SGD$217.5k profits in 2021 comes from LEAPS. Having said that, there are also risks in buying LEAPS and we need to be aware and manage them accordingly.
My Biggest LEAPS Options Contract Closed, 173.8% Returns In 10 Days
I Bought Tesla LEAPS At 3.75k 15 Days Ago (15 Oct 21) And Now It Is Worth $12.6k (236% Profits)
Total Profits From Trading Tesla In Last 3 Months: USD$48,740
The Power Of LEAPS: Tesla LEAPS Is Up 340% In Just 18 Days
Keen to learn about options trading but do not wish to pay for expensive courses, this newbie guide will help gain the knowledge and fundamentals to understand options better. And it’s totally free!
The Newbie’s Guide To Options Trading
The LEAPS Strategy has helped me make more than USD120,000 in 2021. Here’s all you need to know about this strategy that can help you increase your wealth exponentially:
The Ultimate LEAPS Options Thread
Looking for ideas on what stocks to invest in or which stocks to trade? You can take reference from what I have been buying or selling. I try to update them as soon as I can in this section, as well as share my thoughts behind executing these trades:
Excited to start your trading journey or perhaps try out with a paper trading account to build your confidence in trading? Check out this step-by-step to help you get started:
How To Buy Options on Interactive Brokers (Step-By-Step)
I watched tons of videos on YouTube since 2020 and if you are wondering if there are any useful channels that you can subscribe to for learning market trends, TA, FA, check out this compilation here:
My Secret Weapons For Options Trading: I Watch These YouTube Financial Channels Every Day
I concluded my first year of options trading with more than USD160k of gain, see how I do it and the capital I use for every month to give you a sensing of the percentage yield I get out of my gains:
1st Year Options Trading Recap: The Journey Towards SGD$217,509 Profits In 2021
This blog is as authentic and as transparent as I can share, I do not just show the wins and hide the loss. I have made some very bad decisions in the first 8 years of investing and paid a huge price for them. Here is the loss I have accumulated during these years. I hope you learn some lessons from my mistakes.
I Cut $135,715 Worth Of Losses In The Last 1.5 Months