Tesla jumped Monday clearing the 200-day moving average a week ago.
Also, Tesla Model 3 vehicles now qualify for $7,500 electric vehicle consumer
As well, a
trial court properly found that Telsa Inc chief Elon Musk did not push the
electric carmaker to overpay for SolarCity in 2016, the Delaware Supreme Court
said on Tuesday, ending years of litigation over the $2.6 billion deal.
This set the scene for Weekly Options USA
Members to profit by 107%, using a TSLA
Weekly Options trade!
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Tuesday, June 06, 2023
by Ian Harvey
Tesla Inc (NASDAQ: TSLA)’s stock was one of the biggest
beneficiaries of the easy-money policies put in place during the covid
pandemic. Between its low in March 2000 and its high in November 2021, Tesla’s
stock gained an astounding 1,674%.
Tesla Inc shares fell 75% from its peak to its January 2023 low. That tumble
likely encouraged many who were betting against Elon Musk by shorting Tesla
stock. However, it’s been anything but good news for short-sellers since then, given
Tesla’s nearly doubled by mid-February.
recently, Tesla’s stock has settled into a trading range between $152 and $218.
But, last week, the stock closed above its 200-day moving average (DMA) for the
first time since September on heavy volume.
stock price has recovered its 200-day moving average, potentially paving the
way to higher prices.
Why the TESLA Weekly
Options Trade was Originally Executed?
The stock market rally
had a solid session Thursday. After starting off mixed, the major indexes rebounded
and moved higher, though they pared gains near the close. Market breadth was
strong. Several stocks made bullish moves while some early earnings losers
roared back. Falling Treasury yields and a weaker dollar provided a boost.
Tesla Inc (NASDAQ: TSLA) stock is making bullish moves and is trying to
break out. Tesla stock rose 1.8% to 207.52. Intraday, shares hit 209.80,
briefly clearing a 207.89 buy point from what's either a cup or double-bottom
base. Notably, TSLA stock has advanced on above-average volume for four
straight sessions, after few such days in the prior three months.
Shares rose slightly
early Friday, signaling a continuation of the breakout attempt.
There had been
speculation that Elon Musk would unveil a revamped Model 3 at the Shanghai
plant on Thursday, but he did not. Meanwhile, Tesla is increasing discounts on
U.S. inventory, choosing not to cut official prices for now.
The TSLA Weekly Options Trade Explained.....
** OPTION TRADE: Buy TSLA JUN
09 2023 212.500 CALLS - price at last close was $4.35 - adjust accordingly.
Obviously the results will vary from trader to trader
depending on entry cost and exit price that was undertaken.
Entered the TSLA Weekly Options (CALL) Trade on Friday, June 02,
2023, at 9:46, for $5.45.
Sold half the TSLA weekly options contracts on Friday, June 02, 2023, at 11:31 (less than 2
hours), for $9.00; a
potential profit of 54%.
Sold Remaining Tesla Inc Shares on Monday, June 05,
2023, for $11.30: a potential profit of 107%.
Stage 1: Total Dollar Profit is $900 - $545 (cost of
contract) = $355
Stage 2: Total Dollar Profit is $1,130 - $545 (cost of
contract) = $585
Total Potential Profit is $355 + 585
Holding the remaining TSLA
weekly options contracts for further profit next week.
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Where To Now
For Tesla Inc Shares?
court properly found that Telsa Inc chief Elon Musk did not push the electric
carmaker to overpay for SolarCity in 2016, the Delaware Supreme Court said on
Tuesday, ending years of litigation over the $2.6 billion deal.
all of its Model 3 vehicle trims are now eligible for the full tax credit under
the Inflation Reduction Act (IRA). The Internal Revenue Service verified that
The Biden administration said on March 31
that vehicles eligible for the full $7,500 tax credit must have batteries with
specific quantities of components manufactured in North America and critical
minerals sourced in the U.S. or from certain countries.
Vehicles that meet only one of the critical
minerals or battery components requirements are eligible for a $3,750 tax
credit. At the time, the base rear-wheel drive Model 3, with its battery from
China, did not qualify for the full tax credit.
Tesla stock shrugged off early losses and
climbed 1.7% to 221.31 Tuesday. It turned higher just after the IRS confirmed
the Model 3 eligibility. TSLA has gained in the past seven sessions. It is up
more than 100% above early January lows of 101.81.
Daily trading volume has been above average
since last Wednesday, suggesting some investors may be moving off the
sidelines. It may also signal that those short Tesla’s shares are buying to
cover positions to protect against additional losses. According to NASDAQ data,
over 95 million shares were held short in Tesla in mid-May.
For Further Information Read….. “Tesla Shares Jump Into A Buy Zone!”
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