Frequently Asked Question:
Your trading theme for the past year has been either the stock market will crash similar to 2008 and 2000, or, TSLA will soar 10x to Ron Baron and Cathie Wood's (ARK Invest) 2027-2030 target near $2,500. Although its possible that neither will occur, if you had to pick one, which of these two truly outlier events would you prefer to happen solely in terms of profit opportunities for option traders? Which one would the individual option trader have the best trading edge?
Fortunately, this answer has already been shown in real time, real money trading. We started trading TSLA's Intermediate Term Trading Model in our Premium Service on December 9, 2019. The success of trading short, intermediate and longer term options (LEAPS) alongside this model has already spoken. During that time frame there have been 21 Buy Signals generated with an average "Best Gain" for the recommended calls of +414%. That doesn't mean each trade was closed out at +414%, but that percentage gain was the average unrealized profit while the stock traded from $22.64 on Dec 19, 2019 and then went up over 10 fold, currently trading at $250. In other words, if TSLA were repeat that performance, to rise 10X as it did between 2019 and 2023 and Baron and Wood forecast, we can count on our trading model to generate about 4-5 Buy Signals per year with gains that will average "Best Gains" of over 400% each trade. Note that during the initial run our best gain was achieved with our first TSLA LEAP purchased on Dec 9, 2019 when we bought the Jan 15, 2021 $420C which ran as high as +10,803%, while expiring on Jan 15, 2021 with a gain of +10,177%. As for the 20 other trades, only 5 of the 21 trades in 4 years failed to achieve at least triple digit returns, while 10 of the 21, nearly half, were up 600% or better at some point after entry.
As for what has the model done for us lately, our stand-out TSLA trade for calendar year 2023 in the Premium Service was +876% at its heights. That $200C (bought May 5, 2023) expired on Sep 15th @ +631%, not bad for a bear market trade (third trade from the bottom in the table below).
TSLA Call Recommendations Based On Blue Line Premium Trading Service Intermediate Term Trading Model
A market sell-off that corresponds to a third wave down at multiple degrees of trend can provide its own stellar trading opportunities, as it did most recently during the Covid Crash volatility in March, 2020. In fact we recently added a VIX call to our option portfolio that has 50X potential should VIX revisit those old Covid Crash highs in the next few months. So don't write off a market crash's potential to produce highly leveraged option gains. In the best of both worlds, a market crash followed by a multi-year recovery rally would provide substantial gains on both sides of the bull/bear ledger.
Our bottom line approach: Take what the market gives, whether its market debacle or TSLA generational opportunity, or BOTH. Until further notice, we are laser focused on the latter, and in whichever order the market Gods deem appropriate. As Coach Prime so poignantly declares, "It's personal."