Believes in TSLA long-term growth; prefers trading via options/credit spreads rather than direct stock ownership due to volatility and technical setups.
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Easy profit is asking Tesla vs. SpaceX.
For a long time, I wasn't keen on trading Tesla stock, but I believe in its long-term growth. I also believe in both SpaceX and Tesla , and I think the technology they have is interesting.
On the other hand, the negative argument against the two companies is that the technology is available to everyone, and that Elon Musk's departure will cause their stock price to fall over time.
So, my idea is to look at the price chains and say, "On a day when the price is rising, if I don't have a trading position now, it's not a bull day for Tesla stock at all , but if there's a profit to be made from selling the spread, say, Tesla is trading at 354.
What if I assume it will stay below 400 for the next month? That's a very large move, $50 on a stock that usually moves between $3 and $6 a day. Can I enter a position where I allocate $2,500?
That's it , $2,500. If we repeat that for 12 months of the year, we'll maximize our profit. This trade has an 83% chance of maximizing profit. If we do that, this trade will return more than 100% annually."
But, when we look at the chart, when we look at Tesla stock and say, "The stock has made a significant rise, and now it's experiencing a slight pullback." What will happen if the price bounces back from here ?
"If a double top pattern forms, it might be wise to open a short position with a credit spread.
What this channel has said about $TSLA
Drawbridge Finance has only this one call on this stock.