Tesla Opportunity to Make $39K by Next Week: My Strategy and What You Can Learn

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In the fast-paced world of stock trading, timing and strategy can make a huge difference. If you've been following my channel, you're probably aware that I've been actively trading Tesla for the past four and a half years. Recently, I saw an opportunity that could allow me to make a significant profit by next week—$39,000 to be exact. This post walks you through how I approached this trade, my thought process, and the strategies I used to seize this opportunity.

Tesla's Breakout and My Strategy

Tesla's stock has been on a strong upward trajectory recently, with its price rising from around $247 to a new all-time high of $484. Such movements are typical in volatile markets, where big gains are possible—but so are quick declines. As a trader, I thrive on understanding these market shifts and capitalizing on them.

When the stock hit its breakout point between $267 and $270, I knew it was time to act. The price steadily climbed, with only a few down days along the way. However, I also recognize that stocks like Tesla often face profit-taking pressures, especially after such significant runs. I expected some pullback, and my goal was to position myself to benefit from that.

The Trade: Using Options to Leverage Tesla's Movement

In my options strategy, I’m focused on two main types of contracts: short positions and long positions. I held short options at the $400 and $450 levels, with Tesla’s stock price hovering around $469.

Short Positions: My short positions at $400 and $450 had already made significant gains. With the stock at $469, the options were in-the-money, meaning they were already worth more than I paid for them. I had bought these for $24.35, and by the time I was ready to close them, they were worth just $1.33—an impressive gain of $23 per share.
Long Positions: On the other hand, I had long positions with Tesla options at $320. These were designed to capitalize on upward movement. The delta of these contracts was 89, meaning they moved 89% with the stock price. So, when Tesla’s price moved, these long positions would move with it, allowing me to potentially profit from both the upside and downside.

Rolling Up: Protecting Profits and Maximizing Gains

In a red market, there are usually more sellers than buyers. That means when stocks start to fall, they tend to drop quickly. To prepare for any downward movement, I decided to roll up my short positions from $400 to $450. Rolling up involves buying back an existing short option and selling a new one at a higher strike price.

By rolling up, I was able to continue collecting “juice” (the extrinsic value in the options) while keeping a cushion to protect against price drops. In my case, I planned to roll my short positions to options that expire just after Christmas, allowing me to maximize the remaining value while giving me more time to wait for the stock to move in my favor.

The Numbers: How I Plan to Make $39K by Next Week

My goal was clear: collect $39,000 by next week. Here’s how I plan to do that:

I moved my short options to the $450 strike price, where I can collect $13 per contract, with 30 contracts. That brings me closer to my $39,000 goal.
I left some cushion in place with the in-the-money short positions, so even if the stock price falls slightly, I’m still in a favorable position to make money.

Life-Improving Tips

Stick to Your Plan: In a volatile market, it’s easy to get swayed by emotions. I’ve learned that following a clear, written-out trading plan helps me stay on track.
Always Protect Profits: Rolling up and adjusting positions ensures that you're not leaving gains on the table. When the market is in a red phase, always prepare for the possibility of a quick downturn.
Timing Is Everything: Timing your entries and exits is crucial. A trade may look great, but without the proper timing, it can result in a loss. Stay informed and make adjustments when necessary.

FAQs About This Tesla Opportunity

Q1: How do I know when to roll my options?
A1: It’s all about the "juice." If the extrinsic value is minimal and you’re close to expiration, it’s time to roll. This allows you to lock in your gains and avoid potential losses.

Q2: How much can I make with options trading?
A2: The amount you make depends on the options contract, your strategy, and the market’s movement. In my case, I’m aiming for a $39,000 profit with a carefully planned trade, but results vary.

Q3: Is options trading risky?
A3: Yes, it’s inherently risky. That’s why it’s crucial to have a solid strategy and risk management plan. The goal is to take calculated risks and adjust based on market conditions.

Call to Action

If you’re ready to transform your financial future, I invite you to join my Income Accelerator program. In this exclusive, four-week live training starting January 15th, I’ll share actionable strategies for creating income using covered calls and other options strategies. Whether you're a beginner or experienced trader, I’ll guide you every step of the way. Don’t miss out on this opportunity to take your trading to the next level.

Get started today

Conclusion
Tesla’s recent breakout has presented a powerful opportunity to profit through options trading. By understanding market movements and leveraging the right strategies, you can set yourself up for significant gains. As for me, my target of making $39,000 by next week is within reach, and I’m excited to see how it plays out. Stay tuned for more updates and strategies on how to thrive in this market!

Tesla Opportunity to Make $39K by Next Week: My Strategy and What You Can Learn

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