i try to avoid earnings release dates and anytime musk is scheduled to speak.
these events tend to make tesla stock go nuts. if i get squeezed, i buy back
my endangered option and sell a higher priced longer term option usually
at a small credit or breakeven. by doing this, I've stayed away from bad
situations and so far I've made every trading cycle profitable. however,
is has sometimes taken 6 months or more to realize my profits. as long
as the stock doesn't go up in straight line or gap tremendously, playing
defense with these positions should show a profit.
I recently did the same with tilray on the day it went from 160 to 300
back down to 150 and finally closing at 200. the option premiums were
just too attractive to pass up, but trading and protecting positions that day
was almost impossible. I was able to close the position the next morning
with a profit, but after losing a few years off my life.