Trade Alert – (TSLA) August 15, 2025 – EXPIRATION AT MAX PROFIT

When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.

 

Trade Alert – (TSLA) – EXPIRATION AT MAX PROFIT

EXPIRATION of the Tesla (TSLA) August 2025 $370-$380 in-the-money vertical bear put debit spread at $10.00

 

Closing Trade

8-15-2025

expiration date: August 15, 2025

Portfolio weighting: 10% weighting

Number of Contracts = 12 contracts

This is the kind of trade alert I love sending out.

Just to be clear, this position does not expire until 4:15 PM today, Friday, August 15.

Like all successful trades, this one looks stupidly cautious with 20:20 hindsight and (TSLA) trading at $332.22, or 11.34% below the nearest strike price. Since I sent out this trade, Tesla has essentially flatlined.

As a result, you get to take home $1,200 or 11.11% in 17 trading days. Well done, and on to the next trade.

You don’t have to do anything with this expiration.

Your broker will automatically use your long position to cover your short position, canceling out the total holdings.

The entire profit will be credited to your account on Monday morning, August 18, and the margin freed up.

Some firms charge you a modest $10 or $15 fee for performing this service. The flight of money right now is from small, undercapitalized, and questionable to large, overcapitalized, and rock-solid balance sheets.

Q2 earnings couldn’t have been worse. On September 30, the company lost most of its green credit it sells to other car companies, the source of $2.7 billion in revenues over the last decade, thanks to the new Tax Bill.

Tesla posted the worst quarterly sales decline in more than a decade and profit that missed Wall Street targets, but its profit margin on making cars was better than many feared. Tesla shares were down 2.6% in after-hours trading. Almost every metric posted large YOY declines. Revenue fell to $22.5 billion for the April-June quarter from $25.50 billion a year earlier. Analysts on average were expecting revenue of $22.74 billion, according to data compiled by LSEG. Adjusted profit per share of 40 cents lagged the consensus of 43 cents per share.

With all markets now extremely overextended, there is very little out there for new trades. The smart money is now frenetically writing out-of-the-money calls against their biggest technology positions.

Elon Musk has returned to his firm after a one-year foray into politics that ended very badly for him and unhappily discovered that the world has changed. For a start, there are fewer Tesla buyers. Many of his senior staff have quit the firm to cash in their options. Competition from Baidu and Xiaomi in China is fierce.

On June 22, Tesla launched its long-awaited robotaxi business in Austin, Texas (I’ve been waiting ten years). Only 12 vehicles made it onto the road, and there were fortunately no crashes.

The total US market for autonomous taxis is estimated at only $70 billion a year. Alphabet has a two-year head start with its Waymo service, with 1,500 self-driving Jaguar EVs on the road in San Francisco, and it is authorized to start operating in another ten cities. The robotaxi will never become a major profit source for Tesla, or anyone else for that matter. Tesla shares rallied 10% on the event, but they immediately gave back.

With this trade, I was willing to bet that Tesla shares would not rise above $370 by the August 15 option expiration in 17 trading days.

Here are the specific trades you need to close out this position:

EXPIRATION of 12 August 2025 (TSLA) $380 puts at……….…..$47.78

EXPIRATION of short 12 August 2025 (TSLA) $370 puts at…….$37.78

Net Proceeds:……………………….……….………………………….………$10.00

Profit: $10.00 – $9.00 = $1.00

(12 X 100 X $1.00) = $1,200 or 11.11% in 17 trading days