Greg Proctor

Yesterday I sold all 2,800 of my $TSLA shares, about $1.1M worth. This is the options wheel alternative I posted about previously. Why: $TSLA ran from $300 to $400 in three months. Based on its implied volatility, that run was way outside the expected move to the upside. Volatility across the whole market was also elevated going into the midterms. Add up (1) $TSLA above $400 after that run, (2) high market volatility, and (3) election risk, and you get a stock that is due to cool down. The trade: In a single trade I sold my shares at $405, bought back my covered calls for a loss, and sold puts 45 DTE at the $355 strike. So far it looks like the right call. The Dems won Texas handily and the market immediately priced political headwinds into $TSLA and $SPCX. $TSLA is already down $11. I'm happy to get assigned again at $355 in 45 days. That would be buying back in $50 below where I sold, and I get paid to wait in the meantime. If you want to learn how to use options effectively as part of your investment strategy, schedule a free fit call for my 12 week Options Portfolio Mastery program 👇 bttcourse.com/apply

Options sellers should never go through earnings, unless you are intentionally placing an options trade. Anyone with short puts on $GOOG $GOOGL IS taking a rough loss tomorrow. With any luck, volatility collapse will save those traders and, hopefully, this price doesn't reflect tomorrow's opening due to low after hours volume.

I'm not a fan of the Wheel. But there's an alternative I recommend to my clients, and the graphic shows how it works. Why I like it: when a stock moves further than its implied volatility said it should, it rarely stays there. So sell the shares for a large profit, take a small loss on the covered call, and sell an out-of-the-money put. You'll likely be assigned your shares back at a lower cost basis. $META's September run is a clean example. $TSLA may be in the middle of one right now. Learn more here: bttcourse.com/apply

Alright Mr. Market - Don't mess with me this week. Let's finish off the month strong.

He’s talking about options, right?

New $META LEAPS. Not financial advice. Leaps are risky and should be used sparingly with a small percentage (< 5%) of your portfolio. However, this is exactly the time I like to buy them. Oversold on the daily B-XTrender and RSI. Just had great quarter. Macro concerns. Just released a wildly popular product as part of their core business. DM me if you want to learn how to analyze LEAPS.