TSLA breakout by 10/13/20

٣ أكتوبر ٢٠٢٠

TSLA has been forming a (symmetrical triangle chart pattern) with it's bottom trend-line rising since 8/11/20 and it's upper trend-line lowering since it's 5:1 split on August 31st. There was a false breakout on 10/1/20, but time is running out for TSLA to pop or drop. This pattern will be confirmed by 10/13/20 at the very latest date, but usually this pattern has a breakout 2/3 to 3/4 of the way to the apex of the triangle so it should breakout very soon now. I am expecting TSLA to breakout on the upside and continue to hold it's lower trend-line as a base level for quite some time, until a new trend starts. We all know that Tesla has a P/E 1,167 which is ridiculous, but people don't buy shares of TSLA for today's valuation. Tesla is not just an automobile company, it's not just a technology company, it's also on a path to being the largest global utility company. As EV's, solar power & battery energy storage demands continue to grow at exponential rates, Tesla will grow into it's current valuation and then some... * Good luck and happy trading friends *

٧ أكتوبر ٢٠٢٠

ملاحظة

I know what you're thinking. What the heck do you do to setup a winning trade on TSLA the next few weeks leading up to earnings on 10/21? Well, the simple answer is to enter into a 12-option order debit spread of course. lol. Because of TSLA average true range is 20-40 on any given day (although it has been consolidating lately), it's not a good idea to buy anything in the money. And since I'm carefully bullish I'm using a 7:5 call:put contract ratio. Here's a trade that will leverage a debit spread to your favor when entering it. And then most important is how you exit. To exit in the future you should clear the way for the price action movement in either direction, by liquidating parts or pieces of this 12-option order depending. For example 3:45pm today setup for future:

buy call open 450
sell call open 442
buy call open 440
sell call open 435
buy call open 433
sell call open 430
buy call open 424
buy put open 397.5
buy put open 395
sell put open 392.5
sell put open 390
buy put open 370

The initial cost of one of these 12-option order debit spreads 10/9 expiry= 581 on 10/6. Of course it will change value significantly 10/7 - 10/9 depending on the future price action and intelligent exit strategy. * Good luck and happy trading friends. *