[27 May 22 Trades] Bought Tesla Jan 24 LEAPS CALL & FB Sept 22 CALL Option Contracts

The US stock rose for the second consecutive day and the S&P 500 closed 2.47% higher at 4158. I see this as a possible rally so I bought some LEAPS CALL to average down on my previous positions.

Tesla LEAPS CALL

I added 1 more Tesla LEAPS CALL to my previous 4 positions of LEAPS that I bought when Tesla was trading at a higher price. The previous breakeven price was around USD13.95k but after the purchase on 27th May, the breakeven price is USD11.8k.

I believe that over the next 1.5 years, Tesla will not keep staying at this 600 to 800 range. When the share price has risen to 1k or more, I may offload some of the LEAPS CALL options for profits.

Facebook (Meta) CALL

I also added Meta CALL options to try to salvage something for this position (Strike Price USD395) that is expiring in Sept 2022, which is just 4 months away. I missed out on selling off these positions during the March 22 rally because the breakeven premium price was still too high.

Since then, I have added more CALL contracts (when share prices kept falling after the March rally) to average down the breakeven price for my CALL contracts premium. Hopefully, there will be a good rally in the coming weeks for me to finally clear this position with minimal loss.

When I cleared the Sept 22 Meta LEAPS CALL contracts, the batch of CALL option contracts to clear will be Jan 2023 LEAPS CALL contracts, which have a substantial amount of capital invested. There is still half a year to go and I am hoping (short of saying praying) that the stock market can recover by the end of the year.

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10 thoughts on “[27 May 22 Trades] Bought Tesla Jan 24 LEAPS CALL & FB Sept 22 CALL Option Contracts

  1. Hi Jason,

    I have a FB buy call 20240119 240 bought 57.63, anything I can do meanwhile? I read above liao, cannot figure out what I can do. I believe by 20230119, FB maybe still 220…

    Thank you.

    Like

  2. Left 2718.
    Average down means buy call 20240119 240 or buy call 202140119 200 or something?
    Thanks for responding. Fantastic.

    Like

    1. I would not be buying a new LEAPS CALL contract. Instead I would try to save the current one and average down on the premium paid for this one. Probably do that when there is a rally or when you feel that the premium price is really depressed. Another way is to cut loss if you think FB has no more future, so you still get back 2718 from your initial 5763. All the best!

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