$TSLA trade idea 16jan2023

 16 Jan2023

with earnings coming up on 25 Jan. a bullish trade idea for TSLA. Premise that you have at least 100 shares or an existing long call / LEAP and you are bullish.

with stock at 122ish today. Enter the FEB 130 / 145 call ratio spread (buy one 130 / sell two 145). can do for about .50debit per. the profit range at Feb opex for just this spread is 130-160 with optimum being $1500 for a magical 145 pin at opex closing. Your long shares or long calls are also gaining during this move higher.

No added buying power needed since your broker will treat this as a long spread and a covered call. note that earnings are next week and this trade will include those. you will see mark to market losses likely on an up move until opex gets closer as you need the TWO 145s to decay away so plan on holding till expiration day or day prior to get your max gains.

if stock sell off you AND you do not want to wait till opex it possible the 145s will decay enough that you can exit this trade for a profit. you can then move the strikes lower and redo the trade or just move on.

I dont try to get cute and leg into this ratio spread.. as in buy the 130 and then wait for an up move to be able to sell the 145s against for better pricing to make the whole trade a net credit.. the price is the price to me. youre just risking .50 to make a max $1500

you can do this for every 100 share block/long option you have

FEB 130 / 145 call ratio spread for .50 debit