Option Traders Collect Premium in $TSLA

Telsa ($TSLA) has been pretty volatile stock lately, with a never ending supply of news either from Elon Musk(CEO) or stock analysts.  The stock was moving on average about $13 a day when we analyzed the stock.  Our service, the Time Bandit option trading service, focuses on stocks that will we feel will stay within a range over a set period of time.  On June 20th, w analyzed TSLA to stay between $317.5 and $387.5.  This gave us the short strikes of the Iron Condor option strategy.  We sold 317.5 puts and the 387.5 calls and bought the 307.5 puts and 397.5 calls as protection for a total premium of $1.80.  This was a credit of $180 per spread as long as the stock stayed within between the two short strikes on June 29th.

As you can see from the chart below that we had a slight downward move after our subscribers entered the trade.  We felt comfortable with this range because we had the 200 day simple moving average above the short put.  This moving average should act as support for the stock price.  Fortunately, the 200 SMA was never really tested and the stock rallied over the next few days back up to our entry area of around $355.  This allowed some of our subscribers to take the trade off early for a nice profit.

For those subscribers that held on to the end, they were rewarded with 100% of the premium collected or $180 per spread entered.