Please note that my analysis is always wrong so do not take this as trading advice, but rather an random observation.
Tool indicators used:
Gann Fan
Bear pendant
Fib
Double top
My last idea was on July 7, 2022 and as of today, I have not made any changes. The stock has been trading along along the S1 Gann fan (yellow line) for the past few weeks and the inflection points for the stock is still indicating a cross with the bear pennant line/Gann line as the inflection point on Tesla' earing day.
Today's update: I can see that there is a double top pattern formed on the 1 and 4 hour timeframe.. To me, this will confirm that TSLA's earning date will cause the stock to drop. I have also indicated that the price move will be to the Fib 0.618 (~$497) and my bear pennant range (top to bottom) is also showing a price drop between $466 to $497 range in the next few weeks.
My strategy,
1. July 22, 2022 covered call options: Take half of my TSLA position and sell covered calls near or at the current price of $720 and collect the premiums and if the share gets called away be fine with. When the stock drops, wait for the low $500 to mid $450 to buy back and continue to sell deep out of the money covered calls. Use these premiums to buy more TSLA stock.
2. If the stock reversed and goes higher, be glad that you de risked half of your position and hold the cash for the moment to wait for the eventual recession price drop to buy back in.
Good luck. Remember Plan the trade and Trade the plan, do not deviate.
Tool indicators used:
Gann Fan
Bear pendant
Fib
Double top
My last idea was on July 7, 2022 and as of today, I have not made any changes. The stock has been trading along along the S1 Gann fan (yellow line) for the past few weeks and the inflection points for the stock is still indicating a cross with the bear pennant line/Gann line as the inflection point on Tesla' earing day.
Today's update: I can see that there is a double top pattern formed on the 1 and 4 hour timeframe.. To me, this will confirm that TSLA's earning date will cause the stock to drop. I have also indicated that the price move will be to the Fib 0.618 (~$497) and my bear pennant range (top to bottom) is also showing a price drop between $466 to $497 range in the next few weeks.
My strategy,
1. July 22, 2022 covered call options: Take half of my TSLA position and sell covered calls near or at the current price of $720 and collect the premiums and if the share gets called away be fine with. When the stock drops, wait for the low $500 to mid $450 to buy back and continue to sell deep out of the money covered calls. Use these premiums to buy more TSLA stock.
2. If the stock reversed and goes higher, be glad that you de risked half of your position and hold the cash for the moment to wait for the eventual recession price drop to buy back in.
Good luck. Remember Plan the trade and Trade the plan, do not deviate.