TSLA – Tesla Motors (Last:1119.63)

I haven’t featured TSLA in a while, but the promising pattern shown in the chart was too fetching to ignore. It suggests not only that a $106 rally lies just ahead, but that a short initiated when the stock is between the two targets, respectively at 1096.89 and 1106.46 will enjoy favorable odds. I’ll provide a more detailed instruction at the appropriate time,  but the gist of it will be to buy put options priced at $1 or less with about two weeks left on them. Stay tuned to the Trading Room and this tout if you’re interested. ______ UPDATE (Jul 1, 8:16 a.m. EDT): For what’s it’s worth, making money with call options when I forecast a 106-point rally ten days ago was MUCH harder than it sounds. If for instance you had bought July 3 1100 calls then for around $16, you’d be up a whopping when the stock was peaking yesterday at 1088. The short play remains viable nevertheless if and when the stock climbs into the specified range.  ______ UPDATE (Jul 1, 10:19 p.m.): Subscribers used the 1142.51 Hidden Pivot target shown in this chart to get short via the Sep 18 560/600/640 put butterfly spread. Variations on this strategy were reported, and different prices, but for your further guidance, I’ll track four spreads @ 1.00. This price was anomalously low, but do-able nonetheless. It’s possible the 600-strike puts shorted in this gambit were abnormally juicy because retail customers were buying them as a longshot bet.  Puts at the 700 strike were similarly overpriced. TSLA may get second wind a pop above D, but I doubt it will get very far. _______ UPDATE (Jul 2, 10:00 a.m.): Love those bearish butterflies!  When we put them on with the stock $90 lower than this morning’s high, using an 1142 target, they were a dollar underpriced. That’s why even this psychotic rally has barely budged them.