Charles Noonan made $20,000 trading Tesla options around its stock split. He bought put options expecting the stock to fall after the split and held them through a two-to-three-week decline to cash in.
Questions this video answers
About $20,000.
Put options (speaker said they 'called puts' and held the contracts).
Roughly two to three weeks.
Chapters
What's the most money you ever made in one? It's actually less than I lost. Like, the most I ever made in a day was, like, 20 grand. But I made it from Tesla. Once again, I made it from Tesla. So usually what happens, y', all, when a stock split. Anybody know what a stock split. I'll break down what a stock split is if y' all don't teach us, T. So it's like. It's like. It's like a pie. You have. You. You have one pie, right? If I cut it down into four slices, you still have a pie. It's just four slices. So. So instead of having one share, they'll give you four shares. So what happened was Tesla split. And the reason why the stock split is because sometimes it gets too much for somebody to be able to afford, so you get less investors. So if I make the stock more affordable, what am I going to do? I'm going to get more people to invest, Right? So, for example, like, Chipotle used to be like a grand. Chipotle is only $50 now for a share. Exactly. So it doesn't mean that the company changes. They had to get more investors. So now I got these four shares of the pie. Usually after stock splits, the price drops because investors want to pull their money out. So I already knew, tracking Tesla, that I was looking for a downfall. So after that, Tesla went on the downfall for the next two, three weeks. I just called what? Puts. Puts. Let's go, Jonelle. I called puts and I held the contract. That was good. Love it. All right, so here's my question, too, man.