TSLA from Henry Schwartz at TradeAlert

[ajacobson]

Henry Schwartz
Options Trading Strategies


This is an interesting trade, seems more like a short put spread than a long call spread. A contact suggested it could be a big winner from the GME debacle rolling into something more legit!


TradeAlert
Tesla!! $116 million call spread bought in Tesla with 50/50 risk reward. Shares up nearly 1% today near $858 with a massive trade printing on the Amex where a customer paid $25.85 for 45k April 800/850 call spreads, opening on both legs. This trade creates a position that could return more than $108M in profits if Tesla shares are still above $850 in 70 days when these contracts expire. [TSLA 859.98 +10.00 Ref, IV=57.0% -1.1]

 

[Overnight]

...This trade creates a position that could return more than $108M in profits if Tesla shares are still above $850 in 70 days when these contracts expire. [TSLA 859.98 +10.00 Ref, IV=57.0% -1.1]

How much could the position lose? Why does nobody ever talk about risk?

 

[Robert Morse]

In my experience, it is very hard to tell what the initiating customer is doing. He could be betting an up move or protecting a short position in the stock.

Henry Schwartz
Options Trading Strategies


This is an interesting trade, seems more like a short put spread than a long call spread. A contact suggested it could be a big winner from the GME debacle rolling into something more legit!


TradeAlert
Tesla!! $116 million call spread bought in Tesla with 50/50 risk reward. Shares up nearly 1% today near $858 with a massive trade printing on the Amex where a customer paid $25.85 for 45k April 800/850 call spreads, opening on both legs. This trade creates a position that could return more than $108M in profits if Tesla shares are still above $850 in 70 days when these contracts expire. [TSLA 859.98 +10.00 Ref, IV=57.0% -1.1]

 

[Pekelo]

How much could the position lose? Why does nobody ever talk about risk?

It was literally in the first sentence. 116 MM bet with 50/50 risk/reward

 

[ZBZB]

So it is an in the money debit spread as they bought the 800 calls and sold the 850 strike?

 

[taowave]

Long call spread=short put spread,assuming same month and strikes...Box arbitrage

Henry Schwartz
Options Trading Strategies


This is an interesting trade, seems more like a short put spread than a long call spread. A contact suggested it could be a big winner from the GME debacle rolling into something more legit!


TradeAlert
Tesla!! $116 million call spread bought in Tesla with 50/50 risk reward. Shares up nearly 1% today near $858 with a massive trade printing on the Amex where a customer paid $25.85 for 45k April 800/850 call spreads, opening on both legs. This trade creates a position that could return more than $108M in profits if Tesla shares are still above $850 in 70 days when these contracts expire. [TSLA 859.98 +10.00 Ref, IV=57.0% -1.1]