Based on a recommendation I put out in the chat room this morning, subscribers bought expiring 370 calls for as little as 0.60. I’ll use 0.80 as the official price for a four-contract tracking position — the highest price reported. Offer two of them to close for 1.40, day order. The stock performed poorly relative to the broad averages and the FAANGs, mainly because there were too many traders — including us — fishing for a bottom. Fortunately, we didn’t get sandbagged on the opening like so many others when TSLA gapped up $24 and our calls traded as high as 8.90. Despite Monday’s plunge, TSLA looks like it will need to do something nasty to get bulls off its back. We’ll stick with the calls anyway, since this stock is capable of leaping $25 on a good day.______ UPDATE (July 3, 9:23 p.m.): Odds are dim that our calls will revive. Time is the key variable. Unfortunately I neglected to factor in a July 4th holiday that will push the stock’s inevitable recovery back by one crucial day. Because ‘everyone’ was too bullish on the stock yesterday, bottom-fishing it every step of the way down after it had been slammed hard, TSLA still needs a nasty washout before its handlers can drum up a short squeeze. It cannot happen till Thursday at the earliest, and by then no conceivable rally will be able to jump start 370-strike calls. They will trade, probably, for around 0.40 or 0.50 at the opening. You can dump them at will — or hold onto them and pray for a a miracle. But even if the Dow is up 1000 points today, I doubt TSLA will budge. It looks primed to trade just as it did yesterday. Perversely, if the Dow were to fall hard today, it is almost entirely predictable the TSLA would rise, although only by $1-$2. I have gone on at length in this update because, at the moment, TSLA is such an easy read — just as it was yesterday when it carved out four successive lows on the 15-minute chart.
