27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
When the federal government first released its guidelines for the EV tax credit, many noticed a strange disparity.
Tesla's Model Y did not qualify for the tax credit unless it was ordered with the 7-seat option.
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This came down to a weight and price discrepancy. Without 7 seats, the Model Y was too light for the $80,000 price cut-off and too expensive for the $55,000 price cut-off. With 7 seats, the car was more expensive but heavy enough to qualify for the $7,500 credit with its new $80,000 limit.
Tesla quickly responded by dramatically lowering prices, and this meant almost all Model Y trims would qualify for the tax credit. While the top trim Model Y Performance did not qualify, customers had to be careful adding options — adding even two options to the vehicle would make it too expensive to qualify for the credit.
But in a surprising move, the IRS has updated the guidelines for the tax credit, and as of now, every single Model Y variant will qualify for the full $7,500 tax credit.
https://t.co/vYem0aBhRg pic.twitter.com/qb9SW4iwVq
— Gary Black (@garyblack00) February 3, 2023
This also left room for Tesla to raise prices again. Whether the company would is unknown, but CEO Elon Musk had said demand for the Model Y greatly increased since the price reductions happened, already leading to a small increase in the price within days of the original price cut.
Photo: Courtesy of Tesla
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.