Short-covering last week effortlessly shredded an 1142 Hidden Pivot resistance on the weekly chart, telegraphing the blow-off that has followed. It will likely terminate at or near the 1267.89 target shown, and I would therefore suggest using that Hidden Pivot as a minimum upside projection for now. It is sufficiently clear and compelling for us to infer that a move past it is unlikely if not impossible. When big-picture targets are exceeded as has occurred here, the logical and practical alternative is to derive a new target from an extension of a smaller pattern.
Subscribers who bought Sep 18 560/600/640 put butterfly spreads near 1142 for $1.00 or less should consider buying more of them at 1267 at a different level. They should be pegged this time to the 800 strike, September expiration. Consider wider spreads, such as the 18 Sept 700/800/900 put butterfly, which can currently be acquired for under $3.50 and has the potential to widen to $100. (Note: This would entail selling two 800 puts and buying one 700 put and a 900 put for a net debit of $3.50 or less. This trade is recommended only for experienced option traders. If you leg into it, buy the 900/800 spread first, 1:1, with TSLA near 1267; then short the 800/700 spread after the stock falls from 1267, as we expect. Obviously, there is always a chance TSLA is on its way to $1500 or higher.)_______ UPDATE (July 6, 5:54 a.m. EDT): All bets are off. The stock has gapped up through the 1267 pivot in pre-dawn trading, headed perhaps to a minimum 1337, or even 1479. These targets can be found by sliding ‘A’ down to 468.39 on April 3. _______ UPDATE (July 7, 8:25 p.m.): Tesla failed to open on a gap for a change, but it still looks like a good bet to reach the 1479.91 target noted above. When it gets there, I’d suggest speculating with a couple of cheap puts. Don’t risk more than you could lose painlessly, since this is a very speculative bet against one of the most insane rallies ever witnessed.