Load up on TSLA. There's no sure thing in the market, but this one is about as close as you can get.
- Bounced off key support uptrend at $330.
- TSLA had to sell $5B in common shares to increase percent of public float shares available. Why? They didn't need the capital. Simple - it's required to be included in the S&P 500. The S&P 500 requires that 50% of a company's shares be held by the public rather than private equity/owners/directors/etc.
- TSLA completed that sale in less than 4 days, but it also greatly exaggerated the 20% drop we saw yesterday, and the 35% drop we've seen this week.
- With the sale complete - expect $TSLA to continue it's climb faster than ever before.
- Tesla's battery expo is expected to shake up the EV industry with some incredible tech. It's a given it'll have something to do with battery capacity, but just how much battery capacity may be the most important tech invention since the internet (yes, really). There's rumors Tesla plans to unveil the million mile battery. Beta's have already confirmed the battery good up to 1.24M miles.
- 2 people move the markets by their tweets. Trump and Elon. Even though the cybertruck launch was pretty much a disaster - the stock still went up like crazy the next few days. ANY expo with Elon talking about new tech is going to hit the afterburners for Tesla stock
Trade active:
Likely to pickup more call options at open this morning after the first 5-10 min market rush, and reversal of the last few down days is confirmed.
Throwing fuel on the firse:
1) There's a MASSIVE short squeeze likely to happen. Between $290 and $375, there are more than 51k naked put options exposed w/ all but $375 out of the money presently. 50% of these have virtually no shot of ending ITM at a price b/w $290 and $325. Expect the melt up to start as investors liquidate these positions and the move accelerating as the $325-375 relinquish their positions. Upside over $375 is however limited as ITM put options have few relative open interest positions.
2) ARK investments just bought up a bunch of TSLA shares yesterday - likely because they saw the short squeeze opportunity AND because TSLA completed their $5B buy back program, so downward pressure on the stock has all but been alleviated.
As long as there isn't some marketwide big pullback, expect the BULLS to take charge and we could see some huge gains on TSLA in short order.
Throwing fuel on the firse:
1) There's a MASSIVE short squeeze likely to happen. Between $290 and $375, there are more than 51k naked put options exposed w/ all but $375 out of the money presently. 50% of these have virtually no shot of ending ITM at a price b/w $290 and $325. Expect the melt up to start as investors liquidate these positions and the move accelerating as the $325-375 relinquish their positions. Upside over $375 is however limited as ITM put options have few relative open interest positions.
2) ARK investments just bought up a bunch of TSLA shares yesterday - likely because they saw the short squeeze opportunity AND because TSLA completed their $5B buy back program, so downward pressure on the stock has all but been alleviated.
As long as there isn't some marketwide big pullback, expect the BULLS to take charge and we could see some huge gains on TSLA in short order.