Now that TSLA has cleared the sellers and the stock is moving up, the more difficult question now becomes what to do with shares up at these levels. It takes a much more patient mindset to let a winner ride from these levels and to hold onto the risk that shares drop back down to "value support" that is rising steadily through time.
As TSLA is able to produce high quality cars that are free from material defects and build on their past successes and its first quarterly profit, it would seem that the upside could be enormous for equity owners.
One simple technique to profit is to buy all dips to the 21-day lower 2-sd band (aka ) for the next year and risk 3 average trading ranges. Exit on rallies back to the upper standard deviation band at 2 sd's.
When I get a more exact time and date, I will post it. For now,
take a look at long term out of the money puts at $40 to sell, they are expensive and generate a decent return for the risk that I am willing to take.
12:19PM EST Thursday, April 25, 2013
Tesla reports earnings after the close and I am looking for a market reaction to the earnings report that could be dramatic. I want to have cash ready to deploy to buy TSLA on a big move down in price. I am starting to see Tesla Model-S vehicles all the time now, so I know they are growing rapidly and I only seem to hear very positive user experience reports. So, despite all of the critics and doubters about TSLA, there seems to still be long term upside and plenty of it. So, be prepared to get in on a dip.
2:30PM EST Wednesday, August 7, 2013