Tesla Put Spread Play: Friday's Cash Opportunity
Today, I was looking for some good opportunities and noticed that Tesla dropped to around $215 earlier during the open. This level isn't exactly the support line—support is closer to $212—but the price has since bounced back to around $220 with strong buying pressure coming in. I felt confident that the chances of it falling back below $215 were pretty low, especially after seeing how the market reacted, so I decided to place a 0 DTE Put Spread strategy (sell one put and buy a lower strike put) on it.
I’ve set up two put spreads, collecting a total of $500 in premium—$300 from one and $200 from the other. The play is simple: if Tesla doesn’t drop below $215 by 4 AM Singapore time, that $500 will be mine. With about 70-80% probability of success, I’m feeling good about this one.
As for why Tesla dropped earlier today, the market was disappointed by its "Cybercab" reveal at the "We, Robot" event. Investors were expecting bigger news, such as a lower-cost vehicle (often referred to as the "Model 2"), which wasn’t mentioned. Instead, Tesla focused on showcasing its Cybercab and Robovan, both of which are scheduled for production years down the road. This lack of immediate impact frustrated investors, leading to a selloff. But with strong buying interest pushing it back above $219, I’m confident this put spread will work out.
This kind of Friday play has become a regular thing for me these past few weeks. I wait for good setups like this—if there’s no opportunity, I sit it out. But when I spot one, like today, I’m ready to take advantage of it.
Let’s see how it turns out tonight, but I’m feeling pretty secure about this one. 😎
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Long-term value investor, focused on identifying undervalued stocks through thorough market analysis and fundamentals.
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Sor Shi Dll : Moo Moo Cut Fees Around +/-10$ for one spread if you open position. They will also charge if you close one leg, too. So, basically, you pay moo moo all your profit. I am curious how many you gain after settlement.
Alex Wong Cian Yih OP Sor Shi Dll : Thanks for your comment! To clarify, MooMoo provides 100 commission-free option trades each month, and the commission fees get refunded. Since I haven’t used up my 100 free options trades this month, the commission for these trades will be returned to me.
In total, the commissions I paid for these two trades amount to $32.50 (with $13 for one and $19.50 for the other). Once these are refunded, the net fees for the trades will be just $41.87.
So, while I collected $500 in premium, after deducting the actual transaction costs, my net profit is $458.13. My capital at risk for this trade was $12,000, and my ROI for this 5-hour trade is 3.82%.
I structured the trade based on a 70-80% probability of success, and as the hours passed, the probability kept increasing. By midnight Singapore time, the win rate had risen to 85%, and around 1:30 to 2 AM, it was over 90%. So this trade was essentially a near-guaranteed win by that point.
Alex Wong Cian Yih OP Sor Shi Dll : Just to clarify a bit more about how this type of trade works, especially for 0DTE spreads (whether put or call spreads). These types of trades are typically held all the way to expiration unless the market moves against you, in which case you might need to close the trade early to cut losses. However, when the trade is going as expected, like in this case, there’s no need to do anything—just let it expire.
For this specific trade, I had 25 spreads, which equals 50 options because each spread has two legs. Once I initiated the trade and incurred the transaction fees, there were no additional costs as long as the trade expired out of the money (which means the stock didn't drop below the strike price). Essentially, I just wait for the options to expire, and the premium collected becomes mine.
No need for manual exercise or further action—the trade simply expires, and I pocket the profit, which is why there’s no extra cost involved after the trade is set up. The only costs are the initial transaction fees, as I’ve mentioned before.
Hope this clears up any confusion!
Sor Shi Dll : Right, thanks bro.
Sor Shi Dll Alex Wong Cian Yih OP : Thanks for the details of the trade. I also have learnt about fees refund which I don't know how to use.