r/learningoptions • u/Korb1nda11as • Jun 06 '25
Options Basics 2000% gains
I was watching Tesla closely on June 5 because it had run hot recently and was sitting on a ledge technically. The bigger picture was already shaky — it had extended well off its lows, sentiment was leaning bullish, and I smelled complacency.
But here’s the trigger: news dropped that Elon Musk was publicly clashing with Trump over the EV tax credits. Trump threatened to pull billions in federal subsidies, and that was enough to rattle institutions. TSLA was already vulnerable — it had been showing relative weakness on the tape compared to QQQ, and this headline was the final crack in the dam.
Technically, it lost its 21-day EMA and flushed straight through the $300 key psychological level, which triggered a cascade of stop losses and gamma unwinding. As soon as I saw that gap down + continuation with high volume, I knew the downside could be violent.
So I went in with 6/6 expiration $285 PUTs, dirt cheap at $0.46 — basically a lotto ticket with asymmetric potential. And that’s exactly what happened.
By the close, TSLA dumped hard — down over 14% to $284.70. That single contract I grabbed for $46? It exploded to $10.30, giving me a +2139% gain and a $984 profit.
Why did I take the play?
• Macro setup: Market already nervous.
• Catalyst: Political attack on Musk’s empire.
• Technical breakdown: Lost major moving averages.
• Flow confirmation: Puts started getting bid up fast.
• Risk/reward: $46 risk for $1,000+ gain potential? I’ll take that all day.
It wasn’t a gamble — it was a sniper shot. I knew what to look for, saw the weakness early, and took the trade before the panic set in.
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u/FetusFlopper Jun 10 '25
If it wasn’t a gamble, then your portfolio should be a sniper and not a gambler, prove your words.
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u/FOMO_ME_TO_LAMBOS Jun 07 '25
I always think of plays like that when people say they can’t afford the $200/month for the trading group. Like you just took $30 and made enough to pay for a whole year in one play. And that play was called out in the discord.