PP2
2024-12-23

$TSLA Vertical 241220 437.5P/442.5P$ $TSLA Vertical(TSLA 20241220 440.0 C S 1|TSLA 20241220 445.0 C B 1)$ 

Turning a Losing Trade into a Winning One: TSLA Case Study

Trading is about managing risk and adapting to market shifts. Here’s how I turned a losing TSLA options trade into a profitable outcome.

• Initial Trade: On Dec 16, I sold a vertical put spread (437.5-442.5) when TSLA was at $448.

• Market Drop: By Dec 19, TSLA fell to $410, putting my trade at maximum loss risk.

The Adjustment:

Instead of closing for a loss, I monitored price movements closely. On Dec 20, as TSLA rebounded to $441, I:

• Sold a bear call spread (440-445) for $2.70.

• Allowed my put spread to expire.

The Outcome:

TSLA closed at $423 — below both spreads.

• Both spreads expired worthless.

• I kept all collected premiums and turned a losing trade into a profitable one.

Key Lesson: Stay calm, monitor closely, and use strategic adjustments like spreads to recover and manage risk effectively.

Winning Trades
Share your positions with us! This is a column where you can find the winning trades of our fellow tigers. There probably are a few potential opportunities that you may have overlooked.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • Chesterton
    2024-12-24
    Chesterton
    Very wise move haha. I often sell spreads on both sides too
  • tinkie
    2024-12-24
    tinkie
    smart decision
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