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☕ A Tesla Trade Idea Update

Jul 24, 2024

Good morning! 👋

It never ceases to amaze me how myopic folks can be.

They swear up, down, and sideways that they won’t miss the next Microsoft, Apple, or Amazon. Then, in the same breath, run for the hills whenever the markets hit a rough patch.

As recently as a few months ago it was the Fed, the Fed, and the Fed.

Now, it’s tech, tech, tech.

Call me crazy but I’d rather think about profits, profits, profits.

The markets are the only store on earth where people fear a sale.

Why do I hammer on this?

Simple.

Buying anything at a discount dramatically increases your probability of profit. That's why Buffett does it, Baron does it, and I encourage YOU to do it!

There are quite a few great companies on sale today including many of the names we talk about frequently.

OBAers, you know what the “buy” list looks like and, more importantly, what specific tactics you can use to control risk as part of the buying process.

Here’s my playbook.

In pictures... then, a Tesla trade update.

Hooyah!!!

1 – Traders do headlines, smart investors do profits

2 – Keep your emotions out of the equation

3 – Buy the best ignore the rest

4 – Why pessimists have a hard time making money

5 – Investing is only a struggle if you make it that way

And now before we go, a quick trade update: Tesla.

Yesterday I told you that,

“My guts tell me that traders will flush the weak hands out to the low side first, then potentially run higher. Doing so would trap the “stops” as low as $210 before igniting the FOMO buyers to $300 over the next 3-6 months.

Then, I suggested an options trade for anybody interested in capitalizing on the chaos,

“BTO $200 16AUG24 P this morning, last traded $1.93. Then and if the drop happens following earnings, BTO a $250 C which ought to be good and cheap following an overnight selloff.”

Let’s review.

The TSLA $200 16AUG24 Put last traded at $4.52 as I type, giving anybody who made the trade an opportunity to bag a quick 134.20% overnight (excluding commissions). And the TSLA $250 16AUG24 Call has dropped -$12.74 to $2.48, which is “good and cheap” as expected.

Buying one - the call - as a lottery ticket could pay off handsomely if there is any sort of rebound in TSLA whatsoever. If not, it’s a zero (meaning you lose everything) so treat it that way if you decide to make a move of your own.

Note: Please do NOT attempt this trade if you have no idea what I am talking about or lack the requisite options experience. And, if you do, use only speculative money you can afford to lose entirely.