So I'm playing the symmetrical triangle pattern that I posted about yesterday, which tops out around the 233-236 area over the next few days (and keeps descending). Right on the edge now.
Therefore I sold 235 calls and bought 240 calls, for approx 3.30 and 1.30 respectively. That's a net credit of 2.0. I did 6 of these contract pairs. This is the first time I'm doing a call spread (or credit spread). Usually I just sell calls (and only rarely). But this way, my risk is contained. No matter how high TSLA goes this week, my max risk per contract pair is about $3 (5 - 2). But if I see a definitive upside break tomorrow, then I'll close this spread out well before my max loss. If I was really bold, I would have just sold the 235 calls. But by also buying the 240 calls, I contain my risk, because you never know with Tesla.
I'm still not sure whether the symmetrical triangle pattern will break to the upside or downside (odds favor a downside break, but not definitively). Anyway, just thought I would give this a shot. Been tempted to do it many times, but never did. If I get burned on this, then I'll just continue to keep it simple by only *buying* puts and calls.
