IA Trade Alert (Patreon)

NFA: OPTION TRADING IS VERY RISKY, PLEASE DYOR.

I got a second bite at the apple!  Patience....

note the following was not a simultaneous transaction. I sold Google this morning just under 110 and waited for the dip on Tesla and on the pair chart.

Per IADSS all was perfectly in sync. 

I did not get 1.52 but I did get 1.53 - that is for every 1.53 shares of Google I got 1 share of Tesla.

I liquidated 50% of my position in Google equity while retaining the remaining half and also holding SL's on Google with expiration date of Jan 2024.

Instead of purchasing Tesla stock, I executed the sale of Jan 2025 $160 Puts and purchase of Jan 2025 $160 Calls at a net debit of $16 per share. The break-even point for this transaction is $176 per share of Tesla by Jan 2025. Based on my assessment that Tesla will surpass $400 by then, I expect this position to yield at least a 1500% return.

Through this strategy, I was able to generate significant cash inflows, and increasing my equity allocation in the market by 35%.