TheOptionPlayer.com sets up a Tesla, Inc. (NasdaqGS: TSLA) short-term (31-day) option trade (based on Monday’s closing quoted bid/ask prices)
Investors could simultaneously:
The difference between funds received and paid out is an approx. 10% profit if Tesla, Inc. stock closes above $285 on Friday December 17th but immediately execute a trade adjustment if it appears the price will end up lower. If the price gaps lower open the trade using lower strike prices. See Guidelines page at www.theoptionplayer.com/ for explanation on how trade is set up.
Why we recommend it:
As confirmed in the chart below, last week Tesla, Inc. (Nasdaq GS: TSLA) shares got punished to the lowest level in nearly six months, after a wider-than-anticipated quarterly loss did little to change Wall Street’s entrenched views on the Silicon Valley car maker. The stock closed at its lowest close since May 4. The percentage drop was the largest decrease since July 7, when the stock fell 7.2% and the company got knocked from its perch of No. 1 U.S. car maker by market cap. On top of the disappointing quarterly report additional downward price pressure emanated when House Republicans proposed to eliminate the $7,500 electric vehicle federal tax credit. Tesla stock is extremely oversold and appears to be already starting a recovery bounce as it exploded higher today. Plus bearish momentum is rapidly dissipating and turning bullish. The probability is that Tesla, Inc. (Nasdaq GS: TSLA) stock has bottomed out and will remain above the target price at December expiration.
52-Week High: $389.61
52-Week Low: $178.19
Regular www.theoptionplayer.com subscribers can attest to the preponderance of successful trades published on this website.