DevinBoyle55
Short

$TSLA Tesla Coming Back Down to Earth - $20M Bearish Options Bet

NASDAQ:TSLA   TESLA INC
$TSLA Tesla has fallen out of a two year range to the downside. Close today was the lowest since January 2017. Expecting further downside and fresh lows in the near term.

Bearish options bet today - $20M worth of $400/$375 strike (very deep ITM ) June puts traded. The very high per contract premium looks like a hedge fund bet ($13k-$16k per contract).

See chart for possible near term targets. Barring some extraordinary goods news, we could see a decline down to $180 support by next ER in early August.



Note: Informational, not investment advice.
What is the technical basis for your support levels?
Reply
@MonicaL, If you zoom out and look at the TSLA chart from 2014 to 2017 there aren't really any clean/clear support levels in this range in my opinion until $180. The $220/$200 levels are just estimates...round numbers (especially $200 in this case) tend to be psychological support/resistance levels.

But with all of that said, I posted this the day before Tesla announced they were exploring additional funding options and Elon Musk stated he would pledge $10M of his own money for a certain number of shares. Under normal circumstances, this sort of announcement and subsequent share dilution would be a negative catalyst for share price but the math related to Elon Musks comments worked out to a share price higher than it was the prior close (somewhere around $238.50). I believe that is what caused the bounce we saw yesterday. That bounce brought the price back into the two year range I mentioned above. So all in all, based on the technicals and price moves in the last two days I'm not as bearish as I was.
Reply
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features Pricing House Rules Moderators Website & Broker Solutions Widgets Charting Solutions Get Help Feature Request Blog & News FAQ Wiki Twitter
Profile Profile Settings Account and Billing Get Help Ideas Published Followers Following Private Messages Chat Sign Out