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