[28 Feb 22 Trades] Average Down On Tesla LEAPS (Sept ’22) & Bought 1 Share Of Alphabet (GOOGL)

The stock market rises for the 3rd trading day in a row as investors buy the dip and are optimistic that the chaotic situation in the world right now will convince Fed to turn dovish on their monetary policy, which includes fewer interest hikes this year.

Tesla’s stock price gained almost 8% on news that the rising oil prices will eventually accelerate the push towards EV adoption. There is also another report stating that the environmental ministry in the German state of Brandenburg is in the final phase of the approval process for Giga Berlin.

I bought more Tesla LEAPS (SP: 16 Sept 22) to average down on those LEAPS I bought earlier this year. If Tesla’s share price falls, my covered call contracts will benefit as they expire worthless. If Tesla’s share price spikes up, I will lose money in my covered call contracts but I may be able to reach the breakeven price for my Tesla LEAPS or even earn a profit out of the LEAPS that I own. The biggest risk is that time is not on my side as these LEAPS contracts will expire in September 2022.

The details of all my Tesla LEAPS position are as follow:

The total premium I paid for my 20 LEAPS contract is SGD31k (USD23k), so the average price per LEAPS contract is SGD1.55k (USD1.15k). The last traded price was USD210. If Tesla can go back to USD1k to USD1.2k range, I should be able to earn some profit on these LEAPS contracts. Else, they would all expire worthless by 16 Sept 22. So, I would probably make a decision by July 22 whether to sell them the contracts off to cut my losses.

I also bought 1 Alphabet (GOOGL) share as part of my plan to accumulate 5 shares to do options trading in July when the stock split 1-for-20. I bought my Alphabet share with the stock was down at USD2688.

I hope this sharing has been useful to you and also to keep you updated on the Tesla LEAPS contract that I am holding. No one can predict where the market will go next, so we just have to be prepared for a bullish rally by having stocks/ options that can capitalize or be prepared for falling stock prices by collecting premium from selling covered calls or having spare cash to buy the dip.

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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:
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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:
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If the bear market in 2022 is making feel depressed as your stocks come tumbling down, read this article to find out how you can use options trading to help you claw back some of your losses as you await market recovery:
How I Do Earn Even When The Stock Market Is Bearish?

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

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The Newbie Guide To Technical Analysis (TA)

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