Tesla/ if you do this trade I guarantee a massive return don't attempt it if you don't understand
$Tesla (TSLA.US)$ I've been working on a new strategy and it's a way to use credit spreads the best way you can because it has very little capital of your own tied into it and a massive return and the way that I start the trade I'm going to February 19th and I'm going to buy a 350 call option I'm going to sell a 300 I'm doing 10 contracts total cost of you right now would be $40 per contract the credit given pays for the rest and then I'm going to January 15th and I'm going to buy a 800 put option and I'm going to sell the same strike price 800 put for January 8th making it a calendar spread and I'm also going to do 10 contracts of each on this spread now this is what will happen we are intending purposely to get assigned on that short January 8th 800 strike price and we're not intending on exercising our long position offset instead what we're doing we are selling it at a short date in order to get assigned quickly and when that happens you're going to receive $5,000 on the call spread that you entered times 10 it's $50,000 now when you get assigned on that short position you're going to have a thousand shares so instantly it's going to drop that $50,000 out of collateral to your buying power because you no longer need collateral you have to shares in order to maintain that short position so that $50,000 is going to go to your buying power then on top of that you have the call options that you bought at $350 that are worth about 30 grand a piece you're going to sell all 10 of them and take the profit so right now we're sitting at $350,000 whether the stock goes up or not is irrelevant you'll make the same amount regardless and we also have long put options at 800 worth about $2,500 a piece * 10 that's another $25,000 we're going to sell those once we have the shares so for the cost of $400 on the call side and about the same on the put side you have a return of $375,000 and now you're going to lose some of that for the shares that you got of Tesla but once that Capital drops into your buying power you start working to offset the trade
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knowledgeispowerful OP : sorry that the 800 put not 245 I was thinking about my trade on Alibaba
knowledgeispowerful OP : now I haven't decided whether I'm going to buy some additional call options in order to offset that short position or whether I'm going to turn it into a different trade altogether I was thinking about turning it into a butterfly by possibly using my put options at 800 to close out the calls that I sold short leaving me free to keep the cash as well as the shares
knowledgeispowerful OP : and it most certainly going to cost me a little bit more than what to put options are worth but between the shares and the puts I should most certainly be able to close out all 10 of the call options as well as keep all the cash
knowledgeispowerful OP : okay I just random numbers I'm not going to close it out with the put options there just not worth enough but I can sell my shares for market price and buy back all 10 contracts and by doing so I will actually net another $320,000 credit
Lou Blacksail knowledgeispowerful OP : Jesus dude. I wish I had the equity to make those trades and understand them also. this is such a great time to be an investor.
knowledgeispowerful OP Lou Blacksail : you can do it that trade exactly the way I said it with less than $1,000
YeyYey : but, in moomoo we can't do any strategy.?
knowledgeispowerful OP YeyYey : yes I'm aware of that that's why on moo moo I just buy stock I got my other accounts for strategies
knowledgeispowerful OP YeyYey : most investors have multiple accounts with multiple different companies
YeyYey : Oh right. I use to do debit spread too. And leap call.
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