On Friday's Options Action, the crew analyzed the performance of Tesla stock. Tesla (TSLA) has recently started to underperform after a failed breakout higher earlier in the year. TSLA has broken below a bullish trendline just a few days ago and reports earnings next week. Coupled with the need to borrow more capital and questionable sales and manufacturing guidance provides additional downside risks. Expecting TSLA to move lower on earnings, Michael Khouw suggests selling a Sept 310/340 Call Spread for a $10.40 Credit. As of Friday's close, this spread is trading at $10.00.
We've structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience. You can also view the Options Action's video by clicking on the following link: TSLA Options Action
View this OptionsPlay on TSLA - app.optionsplay.com/
Cost: $1,000 Credit
Max Reward: $1,000
Max Risk: $2,000
POP: 67.75%
Breakeven: $320.00
Days to Expiry: 54
We've structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience. You can also view the Options Action's video by clicking on the following link: TSLA Options Action
View this OptionsPlay on TSLA - app.optionsplay.com/
Cost: $1,000 Credit
Max Reward: $1,000
Max Risk: $2,000
POP: 67.75%
Breakeven: $320.00
Days to Expiry: 54