October 24, 2024 2:02 PM | 4 min read Our Second Bullish Bet Our second bullish bet is on Tesla (TSLA 0.00%↑), shares of which tumbled Friday after its Robotaxi event on Thursday. Again, it seems like a modest positive movement post-earnings is more likely than a negative one here. Our trade is a vertical spread expiring on October 25th, buying the $225 strike calls and selling the $227.50 strike calls for a net debit of $0.83. The max gain with that kind of call spread occurs when the stock is trading above the higher strike. In that case, $227.50. Tesla closed at $213.65 on Wednesday, but shares spiked to $239.45 after hours, after the company reported an earnings beat and expanded margins. This morning (Thursday), we exited our call spread at a net credit of $2.46, for a profit of 196%. Not The First Time We’ve Taken Advantage Of A Tesla Pullback We placed a longer-term bullish bet on Tesla back in April, when its share price was below $200. If Tesla shares are trading above $205 in mid-January, that trade will be another ~200% gainer. The Main Risk For Tesla As we wrote here in August, the main risk for Tesla is Kamala Harris winning the election in November. The Final Countdown For Tesla The establishment sees Elon Musk as a "menace to democracy", so Trump's election is a must-win for him. If Kamala wins, they will make an example out of Elon and his companies. $TSLAhttps://t.co/yc0lsDPuUC