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In the lead-up to the event, Tesla’s stock exhibited volatile reactions. The speaker described initiating a position just before a significant price surge, betting on the launch driving the stock higher. He strategically used short, in-the-money puts and leveraged call options, aiming for a potential 5% gain in just one to two weeks—a remarkably high return in trading, but a calculated risk given the event’s high probability.
Following a sharp rise, the stock hit $260, then experienced a sell-the-news dip after the initial announcement, dropping to below $415. Recognizing this pattern, the trader remained in his position through the volatility, confident in the upcoming launch.