Iron Condor on TSLA

[luisHK]

TSLA close 350.74 Friday, September 22 2017. Drop 15.78% in 1 day. It may implode or blow itself up, if that's what you mean...

15.78 points, not %
Down 4.31% on the day, quite a bit less dramatic

 

[viruscore1]

15.78 points, not %
Down 4.31% on the day, quite a bit less dramatic

Thanks for correction...

 

[vanzandt]

TSLA close 350.74 Friday, September 22 2017. Drop 15.78% in 1 day. It may implode or blow itself up, if that's what you mean...

It hit an all time intraday high the day after I posted that. From $379 to $389. Like I said, the chart looked strong. Who knows. I wouldn't short it here though.

 

[Pekelo]

Let's do another one! Selling the Dec IC 320/330/420/430 for $4.75

The position is down to $3.87. TSLA is at $355 the position after a month is up 20%.

 

[logis]

Here's a simple back test of your strategy. You come closest to selling the 40 delta and buying the 20 delta ones. So as you can see its a winner about one out of two times. I varied the parameters to manage risk and for example bail if you lose more than 100% of the net credit but that cuts out too many winners. Cutting out earnings trades eliminates too many trades and is a loser.

View attachment 177914

which tool did you use for backtesting?

 

[TrustyJules]

https://tm3.cmlviz.com/index.php?share_key=s_0_20171025120304_pGWaBXxgr0nyuxNv

 

[Pekelo]

Some guys have all the luck...

Let's do another one! Selling the Dec IC 320/330/420/430 for $4.75

Price rallied back ($338) and the position is nicely out of the money 3 days to expiry... The IC is down to $1.57, just in case it should be closed and take the 60% ROI.

 

[TrustyJules]

Bet you had a few anxious moments when it went under 305$ though!

Well done so far!

 

[viruscore1]

It hit an all time intraday high the day after I posted that. From $379 to $389. Like I said, the chart looked strong. Who knows. I wouldn't short it here though.

You would have done well if you did short it.

 

[Pekelo]

Bet you had a few anxious moments when it went under 305$ though!

True, but Elon's tweet, we trust! I should have sold either lower down another vertical puts (270/260) or at the midpoint vertical calls.

For the record the IC finished OTM, but I didn't trust it. For the future, I think the delusion still there so I expect TSLA going sideways in the same 300-400 range. As long as the market doesn't tank, these ICs can be still played.