$TSLA Where I'm calling from ... looking for a normal little dip back to the $500 +/- in the coming days ...
Closed that 2nd 1/3 and on the post-beige book rip the $45 puts got relatively (for this ticker) cheap. So invested a bit of closed profits as insurance in case this thing does a $BIIB on me.
Anything Can Happen™ Anyone hwo has read or listed to Mark Douglas over the years will be familiar with the story he used to tell about a chartist who was visiting the chairman of an exchange or a commodities house. The chartist was insisting that the price of soybeans was going up and could not possibly trade beow a certain level. The chairman called bullshit and said watch this. He picked up the phone, called down to the flor and gave an order to sell 2000 contracts of beans at the market. Price dropped however much it was to well below the chartist's supposed "solid floor." Douglas's lesson from that story is that anything can happen. One trader anywhere in the world can blow your set up in an instant, no matter your long term edge. The corollary, one should note, is that we do not need to know what will happen to make money. If you have an edge and you you trade your edge flawlessly you will be profitable, much like a casino, over the long term. Well, so it goes. Last night, my "chairman" was an analyst at Goldman Sachs who finally called cried "uncle." This dude had a $200 price tag on TSLA pre-slit. He now puts a $780 target on it post-spilt. SO he effectively raised Goldman's price target on TSLA from $200 pre-split to $3900 pre-spilt. After hours, the stocked rocketed nearly 30 points higher from the close. Assuming the gap up holds, the 4 Dec $500 calls bought y'day will likely go out tomorrow at $0. I'm fine with that because I size a position ot a fixed $ risk and I swear to you I put my trades on I expect every one of them to be a loser. That way, I am never disappointed. In fact, more often than not, as I expected the trade to lose, I am pleasantly "surprised" that I actually made a profit. At any rate, here is the daily TSLA at the moment. My profit target on longs, should $607.80 be left behind today, is $730. I do not close those puts. They either yield a profit of some sort or go to $0. Chances are they will be worth very little right out of the gate. But I have had options I paid $5 for go to 10 cents and then run to $50. Once the trade is on, I'm usually looking for at least a 3X before I close them early. Here is $TSLA as looks from where I'm calling from ...
$TSLA Daily/M5 along with some ideas. $TSLA July 10, 2020 $TSLA 10 July 2020 1500c The specifics will depend, of course, upon where TSLA opens tomorrow, and the general market as well. EDIT: $TSLA split 5 for 1 since the July 10 sweep so it may not be so readily pulled off this time.
Took 1/3 at $375 +15 points from post. Will scale out in bites every new $5 high up to $400 if the run continues through the day. Current bid $372.23.