Tesla Motors, Inc. Bullish Trade (NasdaqGS: TSLA)
TheOptionPlayer.com sets up a Tesla Motors, Inc. (TSLA) short-term (8-day) option strategy. Investors could simultaneously:
Sell the October week-two expiration TSLA $232.50 put for $1.44 (Thursday’s closing bid/ask mean)
Buy the $227.50 put at $.89
The difference between funds received and paid out is a $.55 per share credit which we keep if Tesla Motors, Inc. stock closes above $232.50 on Friday October 10th, but immediately exit the position 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 seen in the Tesla Motors, Inc. (NasdaqGS: TSLA) chart below, after hitting 52-week highs a few weeks ago shares have been tumbling along with other Nasdaq stocks. Tesla boss Elon Musk hinted at a new car model which contributed to Tesla stocks’ price surge today. As highlighted in the chart the stock was due to bounce from being oversold. Also noted is downward momentum is waning and trying to turn up, plus the chart is flashing a candlestick technical bullish reversal sign. Tesla Motors, Inc. stock has not closed below the target since early August and there is a high probability that the price will continue to trade higher for another week.
52-Week High: $291.42
52-Week Low: $116.10
Average Volume (3 month): 5,624,250
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The information presented here is for informational purposes only, and this document is not to be construed as an offer to sell, or the solicitation of an offer to buy, securities. Some investments are not suitable for all investors, and there can be no assurance that any investment strategy will be successful.