Selling our TSLA put contracts to manage risk.
Shares of TSLA have broken higher, driving the value of our put contracts lower. Today, we’ll close our put contracts to preserve the capital left and we will keep TSLA on our watch list for future trades.
While taking a loss is certainly not ideal, our TSLA position has helped to balance our long exposure elsewhere (which has been doing quite well). And buying in-the-money puts has helped to minimize losses as these put contracts still have some time premium in them despite TSLA’s significant move higher.