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Proactive Spreads, June 8th 2017 – TSLA

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We continue to see the trend continue in a low volatility “grind” higher. Until 2400 is lost, there’s no reason to expect the tone of the market to change.

Near term risk is the Fed meeting which is already priced into the Fed futures so it’s not a surprise to everyone. Other than that, it appears to be a slow-ish summer.

Trade #1: TSLA

Now we’re already playing this on the long side and that’s working out fine, but if we start to get extension I want to initiate some short exposure. The stock is up 18% in a 10 day period which is pretty stretched already… ideally we get new marginal highs but with diminished momentum.

Trade Setup

Target Price: 370

Sell to Open TSLA Jul 420/425 Call Spread

Tier 1: Open at 0.60, Close at 0.20

Tier 2: Open at 0.90, Close at 0.60

Tier 3: Open at 1.20, Close at 0.90

 

 

Disclaimer

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