Take note that this is a weekly chart and thus one should be wary of price. As it is, I do not think that there is much more room to grow for this car maker (see nearest Fibonacci price target). Projection are many times subjective, so let me talk about the risk-reward to this trade as they are less disputable at least on a technical basis:
1. Do you agree that the last leg up was euphoric? It certainly look so.
2. Do you agree that decreasing volume is a concern with such a price move?
3. If you are an avid student of the market, you would know that “market always end in euphoria”.
4. TSLA has already reached a new high and really, the risk-reward here really favors the short side rather than the long-side. Yes, I know that it is “clear blue skies” now, but I also want to remind people that “trees don’t grow to the skies”. Now, maybe I digressed.
What I can see over here is that given that the RRR is favoring the short side, what I would do is this: I will purchase OTM PUT options. Alas, I discovered this only on weekend so I haven’t really checked the option prices, but purchasing options is a safer way to execute this trade. Why? In the improbable event that this stock really move like SpaceX rockets.
1. Do you agree that the last leg up was euphoric? It certainly look so.
2. Do you agree that decreasing volume is a concern with such a price move?
3. If you are an avid student of the market, you would know that “market always end in euphoria”.
4. TSLA has already reached a new high and really, the risk-reward here really favors the short side rather than the long-side. Yes, I know that it is “clear blue skies” now, but I also want to remind people that “trees don’t grow to the skies”. Now, maybe I digressed.
What I can see over here is that given that the RRR is favoring the short side, what I would do is this: I will purchase OTM PUT options. Alas, I discovered this only on weekend so I haven’t really checked the option prices, but purchasing options is a safer way to execute this trade. Why? In the improbable event that this stock really move like SpaceX rockets.