Elon Musk just became the richest man in the world, with a whopping net worth of more than $185 billion. On Jan. 7, Tesla (Nasdaq: TSLA) closed at $816 — a gain of more than 7% from the day’s open. With this move, Musk dethroned Jeff Bezos as the wealthiest person in the world, jumping both Warren Buffett and Bill Gates on his way to the top. Along with the Democratic party taking control of the White House and Senate after Georgia’s runoff election on Jan. 6, electric vehicle (EV) and clean energy stocks are benefiting from the green money that’s pooling toward them. And right now, it’s looking like investors are swarming Tesla call options to make a profit from the surge in the markets.
Around this time last year, TSLA traded at $130. Just one year later, and it’s now at more than $860.
Traders, that’s a 700% gain.
If that weren’t enough reason for investors to start throwing their money at Tesla, then this will be: Tesla is also now the fifth most profitable and valuable company, surpassing Facebook. The sharp rise of the EV company doesn’t seem to be slowing down anytime soon — especially with all the unusual activity we’re seeing in Tesla January call options…
Tesla is a force to be reckoned with.
During Friday’s premarket actively, the stock was up another $40 after closing on Thursday at $816.
That same afternoon, we witnessed something incredible on our Blitz Tracker scanner.
Just seconds before the stock market closed, a trader swooped in and bought 1,409 weekly TSLA $860 strike calls — about $140 per contract.
Weekly call options are very similar to monthly call options, except they expire every week on Friday instead once every month. This gives traders the opportunity to cash out 52 times a year (instead of 12 like you get with monthly expirations) and profit from short-term news (like Elon Musk’s new spot as the richest man in the world).
But we instantly noticed that there were two very interesting and unusual things about the Tesla call options trade:
So, why would they do that? How did they manage to turn their $200K into $1 million? And how do you become the next trader to do the same by the monthly Tesla January call options expiration date?
We’re glad you asked.
Make sure to watch the video below to get the answers to all your questions.