Trade Alert – (TSLA) June 5, 2025 – TAKE PROFITS – SELL

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) – TAKE PROFITS

SELL the Tesla (TSLA) June 2025 $430-$440 in-the-money vertical bear put debit spread at $9.95 or best

 

Closing Trade

6-5-2025

expiration date: June 20, 2025

Portfolio weighting: 10% weighting

Number of Contracts = 12 contracts

Elon Musk has been expressing his political opinions over the last couple of days. As a result, (TSLA) shares have fallen by $55, or 15%. Sales figures have come in awful as I expected. Free speech is great, unless you are the CEO of a major listed company, which Elon Musk is.

We now have 95.8% of the maximum potential profit in hand. The risk/reward for continuing with this position until the June 20 options expiration is no longer favorable. In addition, covering a short ahead of the robotaxi launch in Austin, Texas, next week does not sound like a bad idea, as these events are very heavily promoted.

As a result, you get to take home $1,380 or 13.07% in only 5 trading days. Well done, and on to the next trade.

Therefore, I am selling the Tesla (TSLA) June 2025 $430-$440 in-the-money vertical bear put debit spread at $9.95 or best

DO NOT USE MARKET ORDERS UNDER ANY CIRCUMSTANCES.

Simply enter your limit order, wait five minutes, and if you don’t get done, cancel your order and lower your offer by 5 cents with a second order.

If you don’t want to sit in front of a computer screen all day or live in a foreign time zone when the US stock market is closed, such as Australia, or don’t want to sit in front of a screen all day, simply enter a spread of Good-Until-Cancelled orders overnight, like  $9.95, $9.93, $9.91, $9.89, $9.87, and $9.85. You should get done on some or all of these.

With this trade, I was willing to bet that Tesla shares would not rise above $430 by the June 20 option expiration in 15 trading days.

Here are the specific trades you need to exit this position:

Buy 12 June 2025 (TSLA) $430 puts at……….……$131.00

Sell short 12 June 2025 (TSLA) $440 puts at…….$121.05

Net Proceeds:……………………….……….…………………$9.95

Profit: $9.95 – $8.80 = $1.15

(12 X 100 X $1.15) = $1,380 or 13.07% in 5 trading days

 

 

 

 

 

If you are uncertain about how to execute an options spread, please watch my training video by clicking here.

The best execution can be had by placing your bid for the entire spread in the middle market and waiting for the market to come to you. The difference between the bid and the offer on these deep-in-the-money spread trades can be enormous.

Don’t execute the legs individually, or you will end up losing much of your profit. Spread pricing can be very volatile on expiration months farther out.

Keep in mind that these are ballpark prices at best. After the alerts go out, prices can be all over the map.