TSLA -- looking for pullback
Updated
It's Tesla so it's always crazy, but I always just look for putting as much odds in my favor as I can.
One count I have shows potential pretty good resistance around $850 - 855 area. Premium is always high with Tesla so I'll be looking for potential call credit spreads on this one.
After hours it edged up higher, and, if tomorrow it holds and pushes up, I'll watch to see if we tag 850 and watch price action as I'll look to sell premium on this one in a bearish play.
Couple zones below, notably the $750 area, to watch as well. If price does pull back, signifying a potential wave iii is put in around 855, the 750 area aligns well with a standard wave iv pullback right within a demand buying zone.
My game plan: if price opens up, will watch for it to push to 850 area. Once there, I'll look to enter a call credit spread to sell some premium. If price does reject around 850, I'll look for it to go test back down around 800 and 750. But, it's Tesla, hence why I'm not saying just outright short it. Doing a credit spread gives you an edge due to premium in Tesla's options. As always, know your risk level and know when to take a stop loss. For me, after a potential pull back which I will play, will not surprise me at all for Tesla to reach $1,000...
One count I have shows potential pretty good resistance around $850 - 855 area. Premium is always high with Tesla so I'll be looking for potential call credit spreads on this one.
After hours it edged up higher, and, if tomorrow it holds and pushes up, I'll watch to see if we tag 850 and watch price action as I'll look to sell premium on this one in a bearish play.
Couple zones below, notably the $750 area, to watch as well. If price does pull back, signifying a potential wave iii is put in around 855, the 750 area aligns well with a standard wave iv pullback right within a demand buying zone.
My game plan: if price opens up, will watch for it to push to 850 area. Once there, I'll look to enter a call credit spread to sell some premium. If price does reject around 850, I'll look for it to go test back down around 800 and 750. But, it's Tesla, hence why I'm not saying just outright short it. Doing a credit spread gives you an edge due to premium in Tesla's options. As always, know your risk level and know when to take a stop loss. For me, after a potential pull back which I will play, will not surprise me at all for Tesla to reach $1,000...
Trade active
Entered a small broken butterfly on the call side.Bought 900 strike / sold 2 905 / bought 915
Smaller play, gives me flexibility for the price to still move up little higher towards 900 but also gives me winning odds if price stays flat here or pullback a bit.
Again, small play and not looking to swing for fences. The price action today is hanging out right between the 1.618 and 1.786 fib extensions. Generally indicates a profit taking area when price reaches this extension.
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