With Tesla’s share price soaring after their phenomenal Q4 quarter delivery numbers, I bought 3 Tesla LEAPS contracts (as mentioned in my plan earlier), expiring 16 Sept 22, strike price $2,475 and paid premiums of $3,000, $2,980 and $3,170.
I also close my Tesla PUT contract that I sold on 30 Dec 21 and lock in the profits of $3,600 (3.27% gain) after 2 trading days and sold a new Tesla PUT contract with a strike price of $1,200, expiring on 4 Feb 22 and collected a premium of $11,800.
I wanted to do likewise for my Nvidia PUT option contract, i.e. close the contract to lock in the profits and sell another new contract with a new expiry date but I ran out of collateral to sell a new contract. Thus, I closed the Nvidia PUT contract that I sold on 31 Dec 21 with a profit of $307 (1.02%). I used the collateral to sell a new AMD PUT contract, expiring 4 Feb 22, with a strike price of $155, and collected a premium of $1,190 (7.68%). I realised AMD PUT offers a more attractive premium due to a higher IV on the expiration date.
Lastly, I added 2 more Nvidia LEAPS, with a strike price of $600, expiring on 16 June 23 and paid a premium of $1,380 each. These 2 LEAPS contracts helped to average down the premium paid for my other Nvidia LEAPS as the share price had dipped quite a bit in December, so did the premium price. I continue to increase my stake in AMD and Nvidia because I think they will report good Q4 earnings either this month or next and share price will go up on good news.
With the gains from closing Tesla and Nvidia PUT contracts, and premium collected from Tesla and AMD PUT contracts, the total gains on 3 Jan 22 trading was $16,897.
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10 thoughts on “[3 Jan Trades] Bought 3 x Tesla LEAPS, 2 x Nvidia LEAPS, Sold Tesla & AMD PUT”
Brilliant post Jason.. Thank you.
On Tue, Jan 4, 2022 at 8:17 PM Learning Investment With Jason Cai wrote:
> Jason Cai posted: ” With Tesla’s share price soaring after their > phenomenal Q4 quarter delivery numbers, I bought 3 Tesla LEAPS contracts > (as mentioned in my plan earlier), expiring 16 Sept 22, strike price $2,475 > and paid premiums of $3,000, $2,980 and $3,170. I al” >
Thank you very much! Bought at 3k and the last transacted price was 3.69k, up 23% 🙂
LikeLiked by 1 person
Hi Jason. Great post. Any chance the tsla 1200 put you just bought may be exercised before expiration now it has gone more ITM. Will you be planning to roll down and out in this case. Cheers. Raymond.
Hi Raymond, anything can happen, Tesla can either go to the moon if there are more catalysts upcoming or go down because of some bad news. The bottom line is, I am willing to purchase 100 shares of Tesla at $1,200 and minus the premium, it will be an average price of $1082 which I think is not a bad price to hold Tesla especially in the long run. I either sell CC thereafter or nearer the expiration date, the premium may fall below the premium I paid and I will just roll the contract to another month without suffering any loss (just lesser gain). And by doing so, I collect the new premium. In summary, I sell cash-secured PUT on the stocks that I would like to own for the long run.
My bad. I meant to say sell put. not buy. cheers.
No worries, I also get that mixed up at times.
What is cc in ur above reply?
Hi Justin, cc means covered call 🙂
Hi Jason, copied you and bought TSLA 16SEP22 2475.0 C, paid $1900. Will let you know I go. Thanks.
Oh that is a great price to enter. I also bought one yesterday at $2100. I believe Tesla’s share price will not keep going lower, especially Q4 earnings are coming up and Elon Musk will be there to share new products as well.