So really, it goes without saying TSLA could go either way here. If it continues upwards and breaks the over $900 high it established in trading on the 4th, then all bets are off and $1100 is on the table. What I think is more likely is an eventual retracement to probably $620-$650 a share in late February, which would take place over several trading days and maybe not occur as rapidly as the rise did unless momentum on the short side builds. I see strong support in the low $600 range without a doubt, the question is whether, or even when, it will be tested.
With the dip into the high $800s from the $900+ high in trading (looks like TSLA reclaimed $900 in AH though), we could be seeing the first part of a head and shoulders pattern, instead of a continual decline.
In either of these scenarios, theta and volatility seem to be the best trades. Call credit spreads are an interesting option if you think you're seeing a potential peak and maybe even a retracement. *Ahem*. They do have limited upside, but also limited exposure which is nice with a beast like TSLA. On the short side, short selling shares anywhere above $900 should be profitable, unless again this thing just keeps on trucking then I'd pay mind to the other levels charted out in that range.
Longs, obviously uh do your thing.
With the dip into the high $800s from the $900+ high in trading (looks like TSLA reclaimed $900 in AH though), we could be seeing the first part of a head and shoulders pattern, instead of a continual decline.
In either of these scenarios, theta and volatility seem to be the best trades. Call credit spreads are an interesting option if you think you're seeing a potential peak and maybe even a retracement. *Ahem*. They do have limited upside, but also limited exposure which is nice with a beast like TSLA. On the short side, short selling shares anywhere above $900 should be profitable, unless again this thing just keeps on trucking then I'd pay mind to the other levels charted out in that range.
Longs, obviously uh do your thing.