So really, it goes without saying TSLA could go either way here. If it continues upwards and breaks the over $900 high it established in trading on the 4th, then all bets are off and $1100 is on the table. What I think is more likely is an eventual retracement to probably $620-$650 a share in late February, which would take place over several trading days and maybe not occur as rapidly as the rise did unless momentum on the short side builds. I see strong support in the low $600 range without a doubt, the question is whether, or even when, it will be tested.
With the dip into the high 800s from the $900+ high in trading (looks like TSLA reclaimed $900 in AH though), we could be seeing the first part of a head and shoulders pattern, instead of a continual decline.
In either of these scenarios, theta and volatility seem to be the best trades. Call credit spreads are an interesting option if you think you're seeing a potential peak and maybe even a retracement. *Ahem*. They do have limited upside, but also limited exposure which is nice with a beast like TSLA. On the short side, short selling shares anywhere above $900 should be profitable, unless again this thing just keeps on trucking then I'd pay mind to the other levels charted out in that range.
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