Let’s talk a little bit about coincidence in options trading.
When I first put this trade on, I felt that TSLA was overbought, but I’ve seen how this stock has played out before and it can squeeze further, higher, and faster than what everyone expects.
So I scale in and I pick option strikes where I feel that I’ve got enough wiggle room.
The short strikes on the spread is 235.
WHICH IS ACTING LIKE A MAGNET.
I swear there has to be some kind of pain indicator where you can measure at what levels short option traders and speculators get squeezed the most… and then the market will use that level as a magnet.
Anyways, the stock is stupid overbought now, it’s at a key resistance level, and should trade into the mid 220’s this week.