Tesla has been up again today. I believe the market will correct itself in some time in the future. For that reason, I have rolled up Tesla again to 780 and one more weeks out. The cost basis is around $12 a share at the moment is $27.6642. When the market Corrects, I will recoup it and close it out with the closer expiration date.
If the expiration date is too far off, I will make money, but it is hard for me to buy more shares. The whole purpose of the strategy I am doing is to buy more Tesla shares. From this point on, I will not count Tesla Roll up as a loss and buy the share. It is because the trade is not done yet. When I close out the position permanently like ZM, I will consider the loss. I am still thinking it was a good decision to close out the ZM position. Right now for the ZM is at the downtrend. I do not know where is the bottom, so let it be and I will revisit it later for the profit.
Today is the last day of 2020. Hopefully next year we do not live in a pandemic world. As many of the people suffer from the loss of life and job, it will be remembered as one of the most awful years. I sincerely hope and pray that everyone will be better next year.
For me, my account has been quadruple this year. Thanks to Tesla and another strategy that I used. If I decided early for the all-in on Tesla, probably I would made 8 fold or more. But that is not life. I am very thankful that I found out selling option this year. I have been hesitant about selling an option since it seems to be really dangerous. When I started to understand the power of the selling option, I think I can never go back to traditional investment.
People say diversification is the key to the success. People say "do not put everything into one basket." The reality that I got is you need to put everything into one basket, however, you need to be sure that your basket is strong enough. You need to research as your life depends on it.
I have been in the stock market for the last 12 years. I have studied investment finance as well. I worked in the financial industry for the last 12 years. Because of that, I was brainwashed to think that diversification is the king. if you diversify and perhaps purchased ETF or mutual fund, you are giving your power to the money manager and give them a fee. The reality is the money manager is trying so hard to beat the benchmark only. And the benchmark which is the average is sucks. I don't want to be average on the stock market. I want to be a great trader.
Now I understand what it meant to be risk management. Hope everyone finds their way of investment. Not rely on money manager or other agents.
Close Trade:
TSLA 1 Jan 22 750 Cover Call @ 17.88 closed @ 26.1851
(roll up from 750 -> 780 with credit of $1.4791)
Open Trade:
TSLA 1 Jan 29 780 Cover Call @ 27.6642
ETSY 10 Jan 8 155/165 Put Vertical @ 0.8797
RIOT 10 Jan 8 14/16 Put Vertical @ 0.7697
Current Position:
this week none
next week
JPM 10 Jan 8 117/120 Put Vertical @ 0.8297
SNAP 10 Jan 8 48/50 Put Vertical @ 0.5897
ETSY 10 Jan 8 155/165 Put Vertical @ 0.8797
RIOT 10 Jan 8 14/16 Put Vertical @ 0.7697
More than two weeks out
GNOG 10 Jan 21 22.5 / 25 Put Vertical @ 1.2196 (formerly LCA)
NNDM 10 FEB 21 7.5 Naked Put @ 1.4748
cover call
TSLA 1 Jan 29 780 Cover Call @ 27.6642 (cost basis around $12)
TSLA: 120 shares
======================================================================= #sellingPut #optiontrade #sellingput #putvertical #PutVertical #trading #stock #option ======================================================================= I am not a financial advisor. Any trades listed are my own personal trades and meant for educational purposes only. Option trading bears high risk and high return strategy for trader.