Elon vs. Trump! TSLA Tanks! My Cash-secured Put is toast! What Do I Do?
First off, happy June everyone! We are a few days into the half way mark of 2025. This year is flying by. How’s your trading going up to this point? I’ve been doing well personally. Sticking to the plan, having modest monthly targets, not panic trading and not trading headlines. Speaking of headlines, anyone follow the news today!? 😂
If you haven’t heard, today, social media lit up! 🔥 I won’t go into too much details here, as I’m sure there are plenty of ways to catch up on everything, but in summary:
Elon blasted Trump. Trump fires back. Elon goes on a rant.
And then just like that — TSLA takes a major hit dropping more than 14% - a 47 pt drop - in less than half a day!
So what now? Do you have $TSLA positions?
I do. My cash-secured puts were actually conservative.
Placed at a modest strike price, low deltas, and good premiums.
My positions are 100-200% down. 😂
Just remember, stick to the plan! Even I go through the emotional roller coaster, but have to remind myself, I’m okay owning this stock at this price, even as it continues to free fall.
Don’t Trade Drama — Trade Rules
Years ago, I would’ve been all over this:
“Buy puts?!”
“Load up on calls, it should bounce here!”
“Double down! Open twice the positions!”
But experience (and losses) taught me one thing:
Emotion is expensive. Structure pays.
📊 What I Did With $TSLA Today
I sat back and followed the drama on X like everyone else.
As the price started dropping and neared my strike, I took a step back and analyzed the next support level. Once it hit my target zone, I opened a new cash-secured put — collecting more premium and averaging up my cost basis.
I already had an open CSP, so I knew the delta and premium I was targeting — this time, I just got it at a better price.
What if it keeps falling and I get assigned? That’s exactly why I choose expirations 30–45 days out. It gives me time for the trade to work and helps keep emotions in check.
And if I don’t get assigned? Perfect. That’s the beauty of the Wheel — there’s always a next step.
If I do get shares, I’ll turn around and sell a covered call at or above my strike, continuing the cycle: collecting more premium while positioning for potential gains.
And if I don’t? Rinse and repeat. That’s it!
The Wheel Strategy keeps you two steps ahead — like Mahomes reading a defense or Magic running the break. Read and react, but not overreacting.
📬 Final Thought
You don’t need to guess the market.
You don’t need to choose sides in every feud.
You just need a system that works — with or without headlines.
Until next time! Have a great second half of 2025!
– HL Financial Strategies