“Telsa shares are expensive, but with spread trades I can get in at a fraction of the cost.”
Yesterday we opened The War Room for the 2025 trading year, and members are already ringing the register.
One of those winners came on a company we could be rinse and repeating this year.
Here was the setup…
Back in December, I got in early on a “perception-based” trade based on Elon Musk’s shadow presidency.
It was a spread trade on Tesla, the electric vehicle company Musk heads.
Unless you’ve been living under a rock, you know that Elon Musk is arguably the most powerful non-elected person in the world today when it comes to “advising” the incoming President Donald Trump.
Musk already added tens of billions to his net worth on an investment of under $150 million dollars. Which he used to back the correct horse in the 2024 presidential election.
Because of Musk’s winning bet, I believed his companies stood to benefit even more in the weeks and months ahead.
And that’s exactly what happened…
As of Dec. 31, 2024, the soaring valuations of Tesla, SpaceX and xAI boosted Musk’s fortune to an estimate $421.2 billion. He’s now the only billioanire in the world worth more than $400 billion.
But you might think Tesla is “too expensive” to buy shares outright, and I would agree with you.
That’s why I used a spread trade, which allowed me to bet a relatively small amount of money compared to actually buying TSLA shares.
In fact, I got in TSLA for a FRACTION of the current price… less than 10%!
And as you’ll see in the chart below, the volatility of TSLA has been off the charts.
This volatility worked in our favor and I closed the difference of the spread trade on Monday for a 21% winner in 34 trading days.
That’s the power of spreads.
And War Room members also agree.
Here’s what a few members had to say…