TSLA GEX Analysis and Option Trading Suggestions
Key Observations from GEX Chart
1. Call Resistance:
* Key resistance is at $420, with additional resistance at $412.5. Breaking through these levels could trigger further bullish momentum.
2. Put Support:
* The highest negative gamma support level lies at $365, which serves as a critical support. Below this, additional support is visible at $350.
3. Gamma Pivot Zone:
* $390 acts as a pivotal zone, balancing calls and puts. Holding above this level strengthens bullish sentiment, while breaking below could lead to bearish activity.
4. IVR (Implied Volatility Rank):
* IVR at 44.4 indicates moderate implied volatility, suggesting a balanced risk-reward setup for option traders.
5. Implied Volatility (IVx):
* IVx at 62.7, coupled with a decrease of -9.58%, indicates a reduction in market uncertainty, favoring directional trades with lower premium costs.
Option Trading Suggestions
1. Bullish Scenario:
* If TSLA sustains above $390:
* Trade Idea: Buy a Call Debit Spread.
* Strike 1: $390 (Buy Call)
* Strike 2: $410 (Sell Call)
* Expiry: 1-2 weeks out.
* Reasoning: Aims to capitalize on potential upside to resistance at $412.5.
2. Bearish Scenario:
* If TSLA breaks below $390:
* Trade Idea: Buy a Put Debit Spread.
* Strike 1: $390 (Buy Put)
* Strike 2: $370 (Sell Put)
* Expiry: 1-2 weeks out.
* Reasoning: Targets downside movement toward $365 support.
3. Neutral Strategy:
* For consolidation between $365 and $410:
* Trade Idea: Sell an Iron Condor.
* Sell Put: $365
* Buy Put: $360
* Sell Call: $410
* Buy Call: $415
* Reasoning: Captures premium within the expected range while capping risk.
Thoughts and Insights
* Momentum Check: Holding $390 is crucial for bullish continuation. A breakdown below $365 may trigger accelerated bearish momentum.
* Volatility Context: Moderate IVR and declining IVx support directional trades with manageable premium costs.
* Key Levels to Monitor:
* Support: $390, $365
* Resistance: $412.5, $420
Reminder:
GEX data updates every 15 minutes. Always monitor real-time data to adjust your trading plan accordingly.
Disclaimer:
This analysis is for educational purposes only and does not constitute financial advice. Always perform your own research and ensure proper risk management when trading.
1. Call Resistance:
* Key resistance is at $420, with additional resistance at $412.5. Breaking through these levels could trigger further bullish momentum.
2. Put Support:
* The highest negative gamma support level lies at $365, which serves as a critical support. Below this, additional support is visible at $350.
3. Gamma Pivot Zone:
* $390 acts as a pivotal zone, balancing calls and puts. Holding above this level strengthens bullish sentiment, while breaking below could lead to bearish activity.
4. IVR (Implied Volatility Rank):
* IVR at 44.4 indicates moderate implied volatility, suggesting a balanced risk-reward setup for option traders.
5. Implied Volatility (IVx):
* IVx at 62.7, coupled with a decrease of -9.58%, indicates a reduction in market uncertainty, favoring directional trades with lower premium costs.
Option Trading Suggestions
1. Bullish Scenario:
* If TSLA sustains above $390:
* Trade Idea: Buy a Call Debit Spread.
* Strike 1: $390 (Buy Call)
* Strike 2: $410 (Sell Call)
* Expiry: 1-2 weeks out.
* Reasoning: Aims to capitalize on potential upside to resistance at $412.5.
2. Bearish Scenario:
* If TSLA breaks below $390:
* Trade Idea: Buy a Put Debit Spread.
* Strike 1: $390 (Buy Put)
* Strike 2: $370 (Sell Put)
* Expiry: 1-2 weeks out.
* Reasoning: Targets downside movement toward $365 support.
3. Neutral Strategy:
* For consolidation between $365 and $410:
* Trade Idea: Sell an Iron Condor.
* Sell Put: $365
* Buy Put: $360
* Sell Call: $410
* Buy Call: $415
* Reasoning: Captures premium within the expected range while capping risk.
Thoughts and Insights
* Momentum Check: Holding $390 is crucial for bullish continuation. A breakdown below $365 may trigger accelerated bearish momentum.
* Volatility Context: Moderate IVR and declining IVx support directional trades with manageable premium costs.
* Key Levels to Monitor:
* Support: $390, $365
* Resistance: $412.5, $420
Reminder:
GEX data updates every 15 minutes. Always monitor real-time data to adjust your trading plan accordingly.
Disclaimer:
This analysis is for educational purposes only and does not constitute financial advice. Always perform your own research and ensure proper risk management when trading.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.