September 3, 2016
Strategy III — From 9/2: For TSLA I will wait until the last hour of the day. TSLA is currently struggling and this has benefited the long LEAPS position opened in September of 2015. As of yesterday it has a gain of 98% so if it drops again today I will close the 20Jan 250C and 20Jan 220P. One contract each.
Update 9/3: I closed the above two contracts when the 220P hit 37. The 250C closed at 3.10. The residual value in these two positions plus the premium collect since 9/29 generated a 200% total gain paying for the underlying investment plus gaining an additional 100%. The chart below shows premium collected in August plus the overall performance.
I will assess which entity to use to replace TSLA or if I will open a new LEAPS position using 2018 LEAPS. Either magnify your screen to see the final details of this strategy or click on the spreadsheet to expand.
The above results are not a claim or guarantee that all traders will have the same results. All trading has certain risk up to including loss of all capital. These are not a recommendation to trade, just an observations of a potential set-ups and updates on how we are trading or managing existing open positions. Each trader must establish their own reward/risk profile and position size depending on their on Reward/Risk Profile. Paper trade any new method before risking capital.